Looking for 1st small MF: House Hack or Long Distance - Cash Flowing or Appreciating?

Question

Okay...somewhat of a feeler post, to see if I am even close to being accurate, with my research.

Currently looking in the Austin, TX and Boise, ID markets. I have selected these two based off of a few core criteria principles.
-Austin, TX seems to be a good LT appreciation play, cash flowing may be difficult but not impossible. This would be a long distance investment strategy, as I do not want to relocate to Austin.
-Boise, ID seems to have better opportunity for cash flowing, while still having a good chance of LT appreciation. Reports suggest 60% population growth in last decade, and forecasts show the same, for the next 10 years out. This would be a house hacking strategy (duplex/twin home), as I am willing to relocate to Boise.

I have no previous experience in RE investing. I have recently acquired a few different spreadsheets for analyzing deals, but very unsure if I am using them correctly. In terms of budget, we are blessed to have family who is willing to help us get into something that pencils out (no commercial MF).

I could really use any and all advice, suggestions, insights and assistance in starting this journey. Open to all. And if anyone needs a remote assistant, for RE/MF investing related tasks, I can dedicate 40 hours monthly towards something like that, in exchange for training/guidance.

Thanks!

Anastasia Osorio · Answer

You can give it a go here in Western WA. Lots of great investment opportunities!

Alli Breighner · Answer

Hi Ken!

First off, congrats on joining BP and putting yourself out there. This community has a lot of incredible resources.

I'd love to offer advice regarding the Austin market and overall insight where I can. Would love to connect and chat about your real estate goals.

Chris Davidson · Answer

@Ken Nieves House Hacks can be one of the best ways to get started especially if you can take advantage of some value add and use the 2/5 rule to get some tax free gains. I personally invest in markets I would want to live in so if I was in your shoes that would knock Austin out. Your outlook on Boise is realistic. Spreadsheets can be helpful, but only when you know what they are doing otherwise you might be getting incorrect data. As all analysis goes the data is only good as the inputs.

Best of luck and keep learning more each day!

Ryan Kelly · Answer

@Ken Nieves as a new investor, long distance investing can be a bit challenging. If you’ve never owned any real estate, it can be even harder to comprehend. I do recommend spending some time in your target markets to understand them before buying. I work with numerous long distance investors and most of them pick an out of state market to invest in AFTER they build a small portfolio closer to home. This way they understand what questions to ask, mistakes to avoid, and what to look for in their team long distance so they know what to outsource.

I’m happy to chat about the Austin market anytime, both the opportunities and challenges. It can be a great market for savvy investors.

Jevon Shaw · Answer

Do you already have personal connections in Austin? Long distance investing isn't usually a beginner level topic/option.

Jordan Moorhead · Answer

@Ken Nieves we do a lot of investment here in Austin and I'd love to chat if you'd like

Ty Coutts · Answer

Hello @Ken Nieves!

I am thrilled to hear that you are in the beginning phases for your first RE investing moves. Obviously there is A TON that goes into decisions like these.

I basically live my entire life through excel spreadsheets and calculators, and personally believe that fully understanding the numbers behind decisions like these (at least as best as possible) is key.

First step in my mind would be knowing how much you could actually be approved for and what the monthly payments and total costs on certain priced properties may be. That way you have some base information to compare rents and cash flow opportunities against. Have you already gotten this far, or would you like some help with figuring this out?I have multiple clients that are under contract in both of those areas and happy to help share any insights and thoughts of what I have personally seen work for them! Feel free to reach out to me directly any time!