Need Help On My 1 St Rental Property

[Pham duc Tai]

Hello.

I'd like to do out of state investing and quite interested in turnkey investment. I have a few questions needed expert help (sorry if my english is bad).

I'm on quite tight budget (max 110k home). I scanned through zillow and found upstate ny and Ohio state are  affordable and more options to choose from. So

1. Should I buy vacant property or tenants occupied property ?

2. Anyone familiar with upstate ny market (Rochester and Syracuse to be specific).

3. Any other strategy would you recommend on that budget. 

[Preston Garcia]

1. It is up to you, but if the tenant is current, just keep them in place. If not, having it vacant isn't bad.

2. I am an agent and investor in Rochester, feel free to reach out.

3. You can find a single family or multi-family for that price, up to you which you'd rather do.

[Austin McClain]

1. Not a big deal either way. If vacant have a property manager ready to et a tenant in for you. 

2. I invest in Ohio

3. For your first one, get something turnkey that cash flows to start building your team/experince 

[Travis Biziorek]

Hi Pham, definitely add Detroit to your list. If you need some resources on that market I can send you some great ones.

Your budget is healthy for single family homes in Detroit in solid areas. You just have to be smart about where you're buying and work with the right people.

If you get lucky you may even be able to find the right duplex deal under $110k (if you're open to those).

I have 14-doors in Detroit and have been investing there since 2019. 

I generally prefer empty properties because, no matter how much legwork you do, you can't be 100% sure about the tenant in the property. Tenant occupied properties are often under market rent as well. Buying vacant allows you to choose your own tenant and make sure you're getting market rents.

[Izzy Izquierdo]

Hi Pham because the budget is tight I recommend buying a property with tenants already living in there. 

Also, if you want good deals go to wholesellers

[Henry Matthews]

Quote from @Travis Biziorek:

Hi Pham, definitely add Detroit to your list. If you need some resources on that market I can send you some great ones.

Your budget is healthy for single family homes in Detroit in solid areas. You just have to be smart about where you're buying and work with the right people.

If you get lucky you may even be able to find the right duplex deal under $110k (if you're open to those).

I have 14-doors in Detroit and have been investing there since 2019. 

I generally prefer empty properties because, no matter how much legwork you do, you can't be 100% sure about the tenant in the property. Tenant occupied properties are often under market rent as well. Buying vacant allows you to choose your own tenant and make sure you're getting market rents.

[Henry Matthews]

I invest in Detroit @Travis Biziorek. I would love to connect with you. In looking for information on DSCR loans, for properties in the 40k-75k range..

[Travis Biziorek]

Quote from @Henry Matthews:

I invest in Detroit @Travis Biziorek. I would love to connect with you. In looking for information on DSCR loans, for properties in the 40k-75k range..

There are very few options for DSCR lenders in that range. I think I know one. And it's expensive. I also know a conventional lender that will do loans on properties down to about $67,000 ($50k loan amount).

I always make sure clients are investing in stuff that's going to be worth $75k+ to keep their options open for conventional financing. If you're going to be required to do DSCR I'd try to stay above $100k.

[Michael Smythe]

@Henry Matthews what Detroit Neighborhoods are you buying in at that low of a price?

Most Class C SFR properties are now at least $75k.

[Henry Matthews]

Quote from @Michael Smythe:

@Henry Matthews what Detroit Neighborhoods are you buying in at that low of a price?

Most Class C SFR properties are now at least $75k.

There are homes on the west and east side of Detroit. It may be challenging to find DSCR at my price point. I come across properties as low as 25K.

[Taz Zettergren]

@Pham duc Tai Welcome to the forums and congrats on the first post! If the property has recently been renovated I would definitely buy occupied because it reduces your risk and increases your cash flow right out of the gate. Now if it's been awhile since the renovation was completed then it's likely quite a few things will come up on a inspection so be prepared for that. 

I work with hundreds of out of state investors here in the southern/middle part of the country and there are ample of opportunities in that price range in places like Memphis, TN or Little Rock, AR. If you have 110k in cash to work with then there will be is a high probability you'd be able to BRRR properties here. Of course you have to have a team built out but if you have a reliable contact that has experience then they'll have renovation crews as well as property management. Would be happy to discuss the ins and outs of those markets if you were interested in something like that so don't hesitate to reach out. Best of luck on the journey!

[Michael Smythe]

@Henry Matthews pretty cryptic response, "There are homes on the west and east side of Detroit".

Wow, you don't say...

Detroit has a 173 Neighborhoods, let us know if you need help figuring out where to buy with a bit more specifics.