Resources when starting out

[Robert Quiroz]

Hello all,

First post here on BP.  I have read through Michael Blank's Financial Freedom with Real Estate Investing and am ready to go on to next steps.  In my initial research, I'm finding a pretty big disconnect with the deals that Michael implies in the book and what is actually out there.  Things like 8% cap rates, and 10-15% cash on cash returns.  I'm seeing national averages for cap rates over the past decade that don't exceed 6%.  The book was released in 2018, pre-covid, and I wonder if the RE market has just changed this much or if Michael is just really focused on finding the 1 out of 100 deal that has the high cap rate and is a viable deal.

Ideally I'd like to find a community/mentor that can give me some input on the realities and possibilities of the deals in today's market and normalize some of the viewpoints that Michael states in his book. I'm also open to suggestions on other (post covid hopefully) reading material, podcasts and resources. I just joined my local REIA (South Bay Chapter (LAC-REIA)) to also help me find additional information.

A quick snapshot of my current status and goals.  I've got $1M in equity tied up in a rental property that I will sell around June '25 to generate liquid capital .  I've got a $1M in equity in my current home that I also plan to free up if I have success with the previous set of capital.  My goal is to invest this capital into multifamily residences (as few as possible) to replace my active income completely with passive income. 

Thanks in advance,

Rob

[Bradley Buxton]

@Robert Quiroz

The landscape has changed in all markets and the days of easy BRRRRs, 1% rule, 5% down, low rates, and strong appreciation are over. There are still deals and ways to make money it’s just not what the gurus from the last 10 years did. Here in Reno, NV it’s has above average appreciation and break even at 30%. It’s not the big cash flow market but with people and companies coming from CA combined with limited to no building it’s going to continue with 6-10% equity growth. The goals you have and why you’re investing will keep you focused on the best strategy for you to build a balanced portfolio.