Ready to Invest, Seeking Feedback

[Adam Reynolds]

Hello BP Community, long-time listener/website stalker but first-time poster here. Reaching out for advice bc I’m currently stuck in the paralysis-by-analysis phase. Thought it would be smart to reach out to the awesome community here and get some actionable feedback.

I currently have about $50K cash that I’m willing to invest in RE. In addition, I spoke with my lender and I can qualify for an additional $225-$250K conventional loan for a “second home” because I didn’t borrow against my entire income to purchase my primary residence. The only stipulation is that the “second home” needs to be a minimum of 60 miles from my primary residence, which is not a problem bc I live in CA and can’t afford an investment property here anyway.

Inspired by David Green's investing philosophy and having read his book, I'm interested in purchasing an undervalued SFR or small multi-family property out-of-state, rehabbing it, and renting it out. I've done a fair amount of research into the benefits and drawbacks of different markets, but selecting one over the others feels like guesswork. I don't have any personal connections out-of-state that would be particularly helpful in this department. In addition, I've never been involved in any major home renovations and I'm not particularly handy so the the prospect of managing a contractor from afar seems a little daunting. That said, I am very excited to embark upon this journey and I will not hesitate to pounce on the right opportunity.

So if you were in my shoes, what would your next step be? Are there specific markets you would focus on and, if so, which people there should I connect with? What would be your target purchase price and ARV? Would you make this a solo venture and accept that mistakes (i.e. learning opportunities) will be made along the way? Or would you try to find someone with a complementary skillset and create a mutually beneficial partnership?

Sorry for the exceptionally long post, just wanted to be thorough. Thank you in advance for taking the time to respond.

-Adam