Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 9 months ago on . Most recent reply

User Stats

8
Posts
6
Votes
Ashley Campbell
6
Votes |
8
Posts

Ready to Invest, but overwhelmed and stuck!

Ashley Campbell
Posted

Background:  Late 30s, married with two young kids (4 and 2).  My husband and I both have solid W2 incomes (both remote).  We live in small town Arkansas with a very low cost of living.  No plans to move as this is where we want to raise our girls.  We have been your average corp job employees for the past 15+ years (maxing out 401K, emergency fund savings, etc.).  About 5 years ago we hopped in a RE syndication and pulled out of it recently to take a more active role in our investing (returns where meh), along with trying to supercharge our financial goals in retiring early.  Theoretically, we are on track to retire in our mid 50s.  But why not try earlier and start gaining some income outside of our W2!  And the grind is getting a bit monotonous...Plus, I've always had a keen interest in RE and ready to dive in.  I'm a specialty insurance underwriter by trade; therefore analyzing deals and numbers is my jam.  

Our market doesn't make sense from a longer term rental standpoint, so we've been researching different areas to focus on and get started.  Man, it's sooo overwhelming!  We've pretty much honed in on North Texas area.  We've been exploring the OmniKey Group/Slaughter Investing, which we came across through the RealWeath (Kathy Fettke) channel.  Does anyone have any experience with these folks?  Any feedback would be appreciated.  

We have approximately $150k liquid cash ready to go and can likely gain more capital in a fairly quick manner.  I keep getting hung up if we should focus on diversifying with two different houses in two different areas in North Texas or go for it on a more expensive type Duplex.  On paper the duplex projects higher returns, but of course, that's just a projection.  Interested in some thoughts here! PS...anything outside of our market, we do plan to hire a PM.  

Now, we do live in a small town, touristy area that does lack in nicer/unique short-term rentals. Could be an opportunity here. In my head I ask myself if we should go for one less capital intensive LTR and give a local STR a try (for the tax advantages) as well. We really need to sit down with an experienced RE CPA. We've visited with 3 that just don't get it. Personally, I need to do more homework myself on the local STR part to see if numbers make sense.

Appreciate anyone's feedback! 

Most Popular Reply

User Stats

5,239
Posts
4,239
Votes
Nicholas L.
#1 Starting Out Contributor
  • Flipper/Rehabber
  • Pittsburgh
4,239
Votes |
5,239
Posts
Nicholas L.
#1 Starting Out Contributor
  • Flipper/Rehabber
  • Pittsburgh
Replied

@Ashley Campbell

just curious - why have you ruled out your immediate area?  or maybe anywhere an hour or so away?  it's much, much more difficult to invest OOS than advertised - you are much more dependent on your team.  see for example this piece of advice from a well respected investor on BP.

https://www.biggerpockets.com/forums/12/topics/1191473-do-th...

i don't know anything about the company you mentioned, so can't comment on them specifically.  I will say that your first property, and possibly first several properties, are likely going to cost you money. 

it's very difficult to cash flow in month 1, or even for the first few years, when you use any kind of financing right now.  if you're good with that - great.  a lot of new investors, though, hit a big capex expense in year 1 or 2 or 3 - roof, HVAC, an expensive tenant turnover - and are just blown away that all their "cash flow" is gone.

hope this gives you some things to think about - happy to answer any other questions you have.

  • Nicholas L.
  • Loading replies...