First Post - Questions before starting path to financial freedom!

[Matt Darling]

Hi All,

Fairly new to BP, been listening to all the podcasts and enjoy looking through this forum. First post on here!

Been saving up for a while, and ready to start my path to financial freedom within the next year. Living in Seattle right now, but am interested in investing out of WA, and living where I invest, at least for the first few years. I am taking time to decide where I want to invest, and whether it be SF, MF, or small apartments. Ultimately, I want to become financially free with cash flow produced by my assets. I'm aiming to get a 12% or more CoC return after all expenses. Does this seem realistic?

In terms of markets to invest in for cash flow, the Midwest seems to be a very popular answer. Any additional insights on that and why that might be a good option for me? I know there are a lot of posts I can look through for insight on that.

I like the idea of small apartment investing in places like Tucson, AZ. I love the sun, and would enjoy spending some time down there. I was analyzing an apartment building with about an 17% CoC return, which looked like a good deal. Anybody investing in AZ and have any advice on that?

Also, this may be a loaded question, but how much do buy in hold investments get effected by a recession? Is it different between SF, MF and Apartments? It seems whenever I talk to people about becoming financially free through RE, they always ask “well, what about when a recession hits”. So just curious to hear feedback on how but and holds are effected throughout that. I know there probably isn’t a simple answer, and it probably varies based on the market and asset type.

Lots of questions on here, feel free to chime in on any of them. I appreciate all feedback and advice! I will continue to read through posts on here, I know there is a ton of good info.

[Jay Hinrichs]

in todays market 12 to 17% Coc on out of state property that is managed by PM seems pretty unrealistic unless

your looking at super high risk low income type properties that look great on paper but rarely perform as written.

keep in mind real estate prices for RISK..  higher return greater risk.

now there are little secondary and tierary markets through out the middle of american and some rust belt cities that locals can do this.. and they do it well and its their busienss.. this is not finanical freedom .. its just a job the job is real estate and running tenants.. instead of buying any other kind of business that someone runs for you.. your buying rental houses or apartments it takes work to do it right and there is risk when your criteria is 12 to 17% returns..