Newbie investor needing some guidance

[JR Green]

Hello BP,

My name is JR and I'm a newbie investor with $65k and looking to invest in Milwaukee, but don't know the market well enough. I'm from Nevada so do I need to be boots on the ground checking out the market there or can I save some money and make things happen over the phone and online? I've listened to over a dozen podcast's since being introduced to BP and I have thousands of hours more to go before I think I'll have better understanding of the BRRRR method. I'd hate to be stuck in analysis paralysis so looking to get into my first deal so I can get my feet wet. But, am I getting ahead of myself?

Right now I'm looking at a few multi family units that are going for a little over $5,000. The properties are open to all buyers and the essential scope of work for one particular property is $43k and other work needed totals to 53k. It's a duplex with 2/1 in each unit. It'll prob need an extra 20k for good measure. There's a Milwaukee Home Buyer Assistance Program that I can apply for and receive forgivable loans up to $20,000. I'm hoping the cities estimates on the essential work are somewhat accurate, but I'll do my part and get another set of eyes on the property and see what their estimates are. If everything goes to plan (i just jinxed myself lol) once the rehab is complete, according to other 2/1 units in the area I'll be able to rent out each unit $1,000/mo - 1,300/mo. ARV on similar properties in the area are $150k - 175k. The other option is to purchase a multi family unit for around 50k - 65k that are already being rented out totaling $1,400/mo - $1,500/mo. They're in livable conditions but looks like some much needed TLC is needed.

Hope I made some sense with what I'm asking. Heck I hope I'm asking the right questions. I'm very new to all of this so any advice is greatly appreciated! Thank you!

[Drew Sygit]

@JR Green

So, you're a newbie and want to hire a great PMC to manage your investments in Class C & D areas?

How many challenges do you see in that question?

What high-risk investments have you made in the stock market?

Not only is there a high turnover of tenants with Class C & D properties that ruin paper projections, we've also seen a high turnover of OWNERS of Class C & D properties. Most don't know what they're doing and fall hook, line and sinker for a sales pitch from questionable sources. After about 12-18 months of reality most end up selling for a loss - because they overpaid to begin with.

If you want to start out with Class C & D properties, do so in your backyard. Then you can personally manage them, really learn on the fly and have a better chance of success.

If you want to invest in other states, you may want to stick to Class B properties until you get actual experience which you can apply to higher risk investments.