Any real estate investors on here?

Question

I have a few questions. First, I'm a truck driver and scheduling in-person meetups is just a pain. Is it possible to find a multifamily property on Trulia and buy it over the phone/ internet without getting screwed?

Second, I want to pay cash. Is $130k enough for a place like Michigan? I see a bunch of homes in my price range but it seems too good to be true.

Last, I was thinking of living in one unit and renting the other(s). Am I crazy?

Thanks!

Benjamin Parker · Answer

@Jim S. Thanks. It seems like all the places I look at have bad ratings on everything except affordability. Looking at AreaVibes primarily.

@Justin Kurpius I just started listening to the BP podcast. Putting down payments on 4 properties and paying a property management company is sounding like a good idea to me at the moment. This is a dangerous site. ;)

Edit: to answer WHY; of course I want financial independence. More specifically I want to lay on my ass, smoke weed and play video games all day. Duh.

@Calvin Raab I think that's exactly what I'm going to do. I should mention I'm not specifically looking at Michigan. I just used it as an example of places within my price range. I appreciate your and everyone's help.

Jim S. · Answer

Cashflow is my number one goal but to gauge appreciation potential/rent growth I look at:

• Location (market) - Census trends, average price to rent ratios, employment rates, landlord/tenant laws, tax rates (1% in CO is very different from 4.3% in upstate NY)
• Location (submarket) - Schools, crime, walkability, "path of progress" trends, distance to downtown/jobs, public transportation, commercial development
•

Gary Carver · Answer

@Benjamin Parker yes you can find properties in Trulia. My suggestion would be to get with a Realtor in the area you want to invest in. They can help you find deals on MLS and off market. Plus they can be your go to on the ground. Yes $130,000 would get you the property you are looking for here in this area and possible multiple properties

Michael Dang · Answer

Hi Ben!   Welcome to BP.  You have quite a dilemma.  Yes, it is possible but you need to build a trustworthy relationship with the person(s) on the other end of the phone.  Building a team takes time, effort, and a lot of changes.  You may not find that right person the first time.

House hacking is definitely a proven strategy.  Many have done it.  Why don't you leverage your money and obtain a property $300-400K property?  Think a little bigger.

I don't know anything about Michigan so can't help you there.

Justin Cortez · Answer

@Benjamin Parker welcome friend! i'm out of texas as well. and like you I am new to the whole thing, but I have don't a lot of research on strategies and learning the ins and outs of everything that I can! like you, I drive OTR as well and it is definitely a hassle trying to find the time to do face to face meet ups. the best thing that I could tell you is do your research on everything that you can, there are tons of strategies that work great for REI. there are a few different ways to house hack, but in simple terms it is exactly what you had stated in your first post. the one bad thing about that for the every day people is they have to live with the tenants right across the door from them. it would be ideal for us OTR because your not home every day but then again you'll have to have a handy man on your team to help you out and not screw you when your away from home. I've got a few post on my page, I don't know if Michigan is like texas, but people have posted some really helpful tips on the post for beginners! feel free to check them out. sorry I didnt have a whole lot to help on your topic post, but i'll follow this post since were wearin the same boots.

good luck!

Jim S. · Answer

You can certainly buy properties without ever seeing them (I have for 4 out of 5 so far), but you will need to take the time to analyze properties if you don't want to end up with a dud. As an initial screen look for properties that will bring in 1-2% of the purchase price in monthly rent. Look on BiggerPockets to find a good agent in the market you want to purchase in - most typical agents are clueless when it comes to investment properties.

I would advise the opposite of Michael for now and say stick to what you think is a reasonable budget. Better to make rookie mistakes on a $130k property than a $400k property.

I would advise the opposite of Michael for now and say stick to what you think is a reasonable budget. Better to make rookie mistakes on a $130k property than a $400k property.

Calvin Raab · Answer

Great question! I think it would be very helpful for you if you reached out to a few investors in Michigan. You can find them here on BP. They can give you some great advise about how to navigate buying in Michigan. Good luck and wishing you all the best.

Justin Kurpius · Answer

@Benjamin Parker. Podcast while driving.  Network while not driving. Decide your WHY.  Why are u investing 130k?  If looking for Financial Independence ASAP, than use smart leverage (debt). If just itching to invest money to invent money, buy an ETF in a brokerage account and move forward.

Benjamin Parker · Answer

@Jim S. What are some things you look for besides cash flow? I appreciate the help.

@Justin Cortez Thanks so much! I'll be following your progress. Good luck, brother.

@Gary Carver Looking forward to possibly working with you.

Benjamin Parker · Answer

Thanks for the welcome and quick reply. I guess I'm not surprised this isn't an ideal situation. Leveraging my money scares me but maybe I'm being overly cautious. What's house hacking and how many jokes do you get living in Texas with the last name Dang?

Any real estate investors on here?

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