Saint Paul, MN home/future condo

[Nick Oberle]

Hello BiggerPockets community! I am new to the BiggerPockets forum. I am seeking opinions from those willing to provide one. I sold my house and am looking to buy a condo downtown St. Paul. I am looking in the $200K range and will be paying cash for the condo. The goal would be in the next couple years turn the condo into a rental and purchase another and continue this cycle. I am a buy and hold type of investor. I do have a great full time job that pays me exceptionally well and am not looking to quit my job, just start generating passive income. I understand the idea that HOA’s kill cash flow and can increase at any moment for less than good reasons. I also understand you relinquish some control of your investment. I like that condo complexes have numerous owners that can act as babysitters for tenants, at least that has been my experience in past condos I’ve owned. Since I have a full time job I don’t have time to oversee everything involved in real estate investment so I will also likely hire a management company. Please poke holes in my idea and pick it apart, I won’t be offended if you think this is the dumbest idea in real estate investing. Thank you in advance for expressing your opinion. Best Regards, Nick

[Jordan Moorhead]

@Nick Oberle I don't know if I qualify as seasoned at 30 but I don't think any strategy is the wrong strategy. It just needs to work for you, your goals and your risk tolerance. 

Personally I wouldn't buy all cash as it would kill my cash on cash return. REI and stock investing don't have leverage in common so you can't really compare them. I'd rather buy something that cashflows with leverage and pay it off over time or recapture the equity somehow to buy bigger properties or obtain more cashflow.

That being said, that's what works well for ME. My old broker only buys places in cash because he wants the cashflow. He also only does section 8 because they pay the highest rents in the neighborhoods he buys in.

There isn't  a wrong way to do it but I guarantee every way isn't right for every person and their situation.