Newbie from Santa Cruz, CA - Hello BP Community!

[Eric Van Vliet]

Hi BP Community! My name is Eric Van Vliet and I have been reading articles on bigger pockets for a few months but this is my first post! I have some experience with passive real estate investing (One SFR generating $200/month cash flow) but still consider myself a newbie due to the very passive role I had in this investment. I am looking to significantly grow my portfolio this year with a focus on out-of-state multi-family buy and hold as my preferred strategy (but open to other types of REI!). I’m looking to connect with other investors in the area in the area in an effort to learn more about REI, and start growing my portfolio any way I can!

[James Wise]

Originally posted by @Eric Van Vliet:

Hi BP Community!

My name is Eric Van Vliet and I have been reading articles on bigger pockets for a few months but this is my first post! I have some experience with passive real estate investing (One SFR generating $200/month cash flow) but still consider myself a newbie due to the very passive role I had in this investment.

I am looking to significantly grow my portfolio this year with a focus on out-of-state multi-family buy and hold as my preferred strategy (but open to other types of REI!). I'm looking to connect with other investors in the area in the area in an effort to learn more about REI, and start growing my portfolio any way I can!

 Welcome to the site Eric.

As you are looking into out of state investing I figured i'd share with you some best practices that I like to lay out for newer investors.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.

James Wise, Real Estate