New Member & Investor - Albany NY

[Jeff Senkiw]

Hi Everybody

I am a new (or soon to be new) investor in upstate NY (Albany area). I’ve been wanting to get into real estate investing for several years, and I’ve finally convinced my wife to pursue this. I had her read Rich Dad/Poor Dad, now I’m not sure who wants to do this more.

A quick about me:

I live in the Albany, NY area, having moved here about 10 years ago. I’ve always lived in upstate NY, though I grew up south of Rochester. I work in Sales & Marketing, with a heavy dose of Program Management, Product Management, Inside Technical Sales and Business Development. I am happily married with two kids, and we own our own condo.

Why am I choosing to invest in real estate?

A few reasons. First, although I do really enjoy my job, it is quite stressful. The hours can sometimes be long (10 hours per day, additional time at home some nights depending on deadlines). On top of that, I commute an hour each way, so the time I get to spend with my wife and kids (3 ½ and 1 year olds) is limited far more than I’m happy with. Second, I want to retire at 50. And by retire, I mean be at a point where my investments provide enough income to be able to permanently leave employment of any type. And third, I was diagnosed with Trigeminal Neuralgia somewhat recently, and so I’m not sure entirely what my future holds for me. I want to be able to safeguard my family’s future as best as I can while I can.

What is my target investment?

Initially my plan is to invest in 2-4 unit multi-family properties. My intent is to get a handful, maybe a dozen or so properties into my portfolio, then start scaling up. I would like to get into 5-15 unit properties after I get some experience with the smaller properties, and eventually scale up to 15+ unit properties.

What are my tactics and strategy?

My overall strategy is to BRRRR my way through my 2-4 unit property stage, with the intent of building equity & capital to fund the next stage. I don't intend to / anticipate utilizing the BRRRR strategy for the 5-15 unit properties, though I will absolutely do it if an opportunity presents itself. I see myself investing in more turn-key type properties at this point, but I will continue to BRRRR additional 2-4 unit properties (each stage is cumulative – meaning I won't stop doing the earlier stages as I progress).

As far as the tactics for each of these stages – well that's what I'm working to develop now. Funding is currently the primary focus – I'm meeting with a few lenders over the next few weeks. My intent is to be preapproved for (some amount of) funding by the end of the month. I have a $30K unsecured LOC with the credit union I do all of my banking through, and I could get a ~$40K HELOC with then as well. I have a few agents I'm looking at – most likely the agent that helped us with our current home will be my choice, as he has numerous rental properties himself so he understands the market.

I’m trying to work out contacts for some of the other activities necessary to execute on the strategy – building inspector(s), contractor(s), insurance, etc..

Aside from the above, I’m continuing to educate myself in real estate investing (specifically as it relates to my strategy). I find doing the property analysis quite easy – I work with financial numbers all day long at work. I am spending a lot of time on learning neighborhoods & corresponding rent rates based on amenities in my target markets. I am finding it difficult to stay focused on my strategy – As I’m working my analyses on smaller properties, I keep looking longingly at some of the larger properties in the area.

I am open to any and all advice you would like to throw my way, and I’m always looking to connect with people.