New Member in Arizona

[Jeremy Jessup]

Hi everyone,

I just stumbled onto this website today via a couple of Youtube videos from the site.  My family of 7 is supported by my full time graphic design job which (when you factor in the hours commuting) has me gone about 60+ hours a week.  That coupled with some personal health concerns has me seriously looking into other options.

I'm looking to replace my income with rental properties, ideally within 5 years.  I want to learn how to leverage my credit (singe my credit is high and my capital is low) to build a rental inventory.

The problem is that I'm plumb ignorant and have a lot to learn (and could use as much hand-holding as possible to get the ball rolling).  I've got a lot of material to go over... glad I found this site.   =^)

[Casey Miles]

Originally posted by @Jeremy Jessup:

Thanks for the input so far.

Casey - I'm going to start taking the free course BP offers before I start looking for properties... I don't even know what a "CAP rate" is or what "cash on cash" means yet. I live in Arizona, but have lived in a number of other states over the years and would be happy to invest elsewhere if there's a better market for my needs. Do you know how to find a good target area to look for investment opportunities?

Vickie - Good idea... I get lots of hours in the car each week.  Hopefully, as I learn more about what's involved, I'll be able to partner with some folks who can show me the ropes a bit (I've just gotta know enough to be able to bring something to the table... and that might take a while).

Start licensing to podcasts too. I will say there is a ton of stuff to learn and you won't be able to learn everything. Don't get caught up in learning so much that you get analysis paralysis. I see a lot of new investors get to this point. You don't want to be careless with your money a jump into a bad deal but don't be afraid to learn the basics and execute.

"Cash on Cash" = rate of return on the actual cash you have to put into the deal such as down payments and acquisition costs.

"CAP rate" (Capitalization rate) = represents the rate of return on the capital investment. If you were paying all cash for a property this would be the rate of return. You essentially determine the NOI (Net Operating Income) and divide it by the purchase price.