Seeking advice on my strategy and markets

[Vicky Kapoor]

Hello BiggerPockets Community,

I'm Vicky, a real estate investor planning to achieve a specific investment goal, and I'm eager to get your insights and feedback on my strategy. Here's a brief overview:

My Goal

• Objective: Generate a monthly cash flow of $1,000.
• Initial Capital: $50,000 for down payments and renovations.
• Target Markets: Indianapolis, Buffalo, Cleveland, Cincinnati, and Philadelphia.

Strategy Overview

• Property Focus: Duplexes, triplexes, or single-family homes suitable for a rent-by-room model, primarily targeting IT professionals and bankers.
• Market Selection Rationale: These cities were chosen for their balance of affordability and potential for rental income, with a specific interest in neighborhoods popular among young professionals.
• Financial Approach: Leverage the initial capital to acquire properties, possibly using FHA loans for lower down payments if applicable.

Specific Queries

1. Property Selection: Given the targeted tenant demographic (IT professionals and bankers), are there specific neighborhoods or property types you'd recommend within these cities?
2. Risk Management: What potential risks should I be aware of with this strategy, particularly in these markets?
3. Additional Revenue Strategies: Beyond rent-by-room, are there other strategies you'd suggest to maximize rental income within these markets?
4. Scaling the Investment: I'm starting with $50,000, but I plan to scale up. Any advice on managing growth and reinvestment effectively?

I am open to any constructive criticism or alternative suggestions that could enhance my strategy. Your expertise and experiences are invaluable, and I greatly appreciate any insights you can share.

Thank you for taking the time to read and respond to my post. Looking forward to engaging in a productive discussion!

Best Regards

[Alecia Loveless]

@Vicky Kapoor Hi Vicky. I don't specifically know those markets but If you can get into them for $50,000 then the average nationwide return per unit is about $200. So for a duplex you could hopefully expect $400. If you can manage to do a BRRRR then you might be able to do a second deal and get a second duplex somewhere and another $400 which would be close to your goal with a total cash flow of $800.

When I first started out I was in a more expensive market where I as having to put down closer to $80,000 but my average cash flow was $175/unit. As I’ve gotten more experienced I’ve now moved to where I’m averaging about $375/unit cash flow but it’s taken 4 years and 25 doors to get there.

Wishing you the best of luck.