Operationalizing & Scaling

[Corey Davis]

Hello,

I am an accidental REI. I acquired my first home in Massachusetts, renovated it for myself thinking I would stay for a long time yet ended up moving to WA state. Since I renovated it to my preferences, the home was able to command $3,500 rent/month with roughly $1,100/month in profit. I've included a photo for reference of the kitchen which is the main attraction of the Mass home.

Now I am looking to pursue REI long-term and am looking for tips on how those more experienced in the field have operationalized and scaled the property selection process.

Our thinking for this first official investment is to either acquire a duplex/triplex and add our touch or acquire a single family where an ADU can be added. We want to first cancel out the mortgage, move out of the other unit after a year and rinse and repeat.

I am approved for both a standard loan and a rehab HomeStyle loan. We are looking in either Portland, OR or Salem, OR. 


Questions my fiance and I have are:

- Property/neighborhood selection (worst unit in the best neighborhood? Go straight for duplex/triplex?)

- Design language (this has differentiated my home in Massachusetts though tastes differ and not all markets are as high earning as Mass)

- Do you typically work with the same contractors, electricians, etc or have a network?

- Navigating deals in a higher rate environment. I’ll never get a 3% interest rate again likely so margin will be more difficult this go around  

- Anything else I may not be thinking of

Any and all advice is sincerely appreciated. 

Corey