New member from Washington DC

[Jordan H.]

Hello,

I recently came to the conlcusion that there had to be a better way to invest for my future. I started asking the right questions, and those questions eventually led me to BP. This site is an amazing collection of advice, experiences, and networking opportunities. Thanks to BP for establishing such an awesome place to share info.

I live in Washington DC and had continually delayed hopes of buying my first home in this high priced market. But with the tools I've recently begun developing, that dream is once again alive. I currently work a 9-5 position with great stability and I am fortunate to say I love my job. With that said, reducing expenses, budgeting, and saving were not accelerating me toward my financial goals as I desired. I finished paying off my credit cards earlier this year, and I'm left with student loans as my only debt. While I'm able to save more aggresively, I am looking for better ways to invest this money. I gained some great experience by actively managing my small IRA account, but I'm looking for more stable, long term investment vehicles. Now that my personal finances are in better shape, I plan to open a taxable brokerage account and use gains generated in the stock market as additional capital to invest in real estate.

My primary interests include long term, buy and hold strategies; real estate financing methods; single family and small to medium multi-unit properties; and property management. Over the next 12-18 months, my real estate investment goals are to:

1) buy a multi family property as an owner occupant

2) become a licensed real estate agent

3) continue learning about single family and multi-unit buy and hold strategies

4) develop a greater understanding of my local market (where I see few opportunities)

5) identify out of area markets where prospects seem brighter such as Baltimore, Richmond, Atlanta (my hometown), and Houston (my next destination if/when I leave DC)

6) connect with REI veterans and identify ways my skills can benefit them

As I continue to save money, I hope to begin earning additional income by serving more experienced investors. While I quickly decided wholesaling wasn't as simple as it sounded, I am intrigued by the bird dog scenario. I think combining a real estate license and MLS access with my analytical skills and growing knowledge of specific neighborhoods would be a great way to market myself. Ideally, I will have developed a well planned, long term investment strategy by the time I accumulate enough capital to dive in multi-family investing beyond my owner occupied property.

I'm careful not to focus on a single niche right now. While I plan on buying and holding, I may encounter a deal that won't make money as a rental but may have good potential as a fix and flip. I feel that understanding my market will show me which types of deals are profitable in various scenarios.

A few questions:

Can agents familiar with the area explain the reciprocity rules between DC, Maryland, and Virginia? I believe DC and VA offer reciprocity with the other areas while MD does not. I am primarily interested in DC and Marlyand as I look for a multi unit to owner occupy.

Would you advise a new agent with little to no experience to act on his own behalf when buying his first property?

I ofter hear buy and hold investors seeking $100-200 per door in cash flow. Can you confirm that doors refers to units and not number of bedroom "doors"?

Lastly, I have good credit, but hope to improve my credit score in the next year or so. With my credit card balances reduced to zero, will my credit score increase instantly or does it take a few months of zero balances to show improvement? I still use my credit cards on occasion, but pay any balance in full by the due date. Will this activity help or hurt my score?

I appreciate any comments or feedback you can provide. Thanks so much for reading.

Jordan

[Jordan H.]

Forgive my delay in responding. Thank you all for the welcome. As recommended, I've added a pic to my profile.

@Zach Liu Thanks for your feedback. My goal in understanding the $xx per door was to properly interpret the 50% rule. While these are rough calculations, I'm trying to link rental prices (which I'm more familiar with) to home prices. My goal is to determine a maximum home price that will cash flow given an area's rental prices.

I just want to ensure my credit card use does not harm my score. I'll seek out some credit improvement sites to see what they suggest.

@Ned Carey I appreciate the comments. I have read several of your posts on BP and found them very helpful and informative. I will delay the decision to act on my own behalf until I'm ready to shop for a property. And thanks for clarifying what may have seemed like a dumb question about "doors".

@Dmitriy Fomichenko and @Jaren Barnes Thanks for the advice on networking. I reached out to a coworker whom  I recently learned is a licensed agent. My organization periodically brings in a Realtor, and I attended his last presentation and peppered him with questions. I look forward to reading more about your experiences. Learning about the successes of others is very encouraging to me.