Dipping my toes in the waters of Cincinnati? Atlanta? STL?

Question

Hello everyone!

Absolute newbie here! It feels a little intimidating coming out of lurking status to introduce myself, but I guess we've gotta start somewhere right? I've always been a BiggerPockets fan and have always wanted to get my feet wet in the real estate world. My husband and I had previously own a condo, lived there for 10 years, decided we needed more space for our kids, so we bought a bigger house and rented out the condo. However, the rental did not meet the 2% rule and we were at negative cashflow every month (high HOA & state taxes in Northern NJ ugh), after 3 years we ended up selling it and barely broke even. Well that stung a little...

A year later, here I am again learning and trying to figure out the in's and out's of real estate, and hopefully be able to buy our next investment property either in Cincinnati or Atlanta (or others!). I also hope to get out of my comfort zone and network with some of you folks here as I go along my journey. We're looking to start small, possibly between a 50k-100k property to buy & hold. Any pointers/advice you can give this newbie here would be extremely appreciative. Even if it's just a quick HI :)

Brandon L. · Answer

Hello!  @Pearly Tan

Welcome to BP, and congratulations on making the decision to invest in your future via real estate.

I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.

First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:

https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp

The second is a post that will help get you focused with your real estate investing goals:

https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciated

The last one is a post that will help you choose an “investor friendly” real estate agent. There are many agents out there, but it’s important to choose the right one.

https://www.biggerpockets.com/blogs/5868/52724-im-new-to-investing-how-do-i-find-an-investor-friendly-agent

I love answering questions if you have any! Good Luck :)

Pearly Tan · Answer

@Brandon L. Those links have been a great help for getting me started. Thanks so much!

@Sean Carroll I'm looking to buy and hold, ideally a multi-family duplex. I'd love to connect with you if that's ok.

Account Closed Will definitely reach out. Thanks!

Pearly Tan · Answer

Thank you @Theo Hicks, that sounds like a common theme I've been hearing about Cincinnati. I'll check out those areas you mentioned.

Pearly Tan · Answer

@Lance Johnson - No particular reason, aside from having friends in Cincy, ATL and STL to provide insights on the local neighborhoods. I am open to other cities as well.

@James Wise - Thank you! I'm excited to be part of this community :)

@Joel Owens - We are aiming for cash flow. You do bring up very good points, which I have considered as well and will continue to keep that in mind. I hope we are lucky enough to come across honest brokers/agents like you who will work in the best interest of the investors. I truly appreciate your input.

Leah C. · Answer

Hi! My husband and I are in the same boat as you. Newbies and looking to invest in Cincinnati. We are just starting to research and learn as much as we can about all the neighborhoods. Overwhelming!

Theo Hicks · Answer

No problem. There are other areas where you can pick up a property for under $100k but Pleasant Ridge and Norwood are the only B to C areas where this holds true.

Theo Hicks · Answer

Hi Pearly,

If you decide to invest in Cincinnati, I recommend visiting the city in-person. It is a very street-by-street and neighborhood-by-neighborhood kind of market. With your budget of $50,000 to $100,000, I recommend looking into Pleasant Ridge and Norwood. You'll be able to find an SFR or duplex for under $100,000 in those neighborhoods.

Joel Owens · Answer

Is your goal cash flow or equity growth? Generally with 50k to 100k houses cash flow is the main driver.

Be careful buying nominal assets states away that are predicated on the tenant paying on time to cash flow. With the cheaper houses the question should be if the tenant trashes the house and you have no income coming in from the property for a period of months at a time would your finances be minimally impacted? If the answer is that the investment HAS TO pay off and you are ALL IN then that can be a dangerous decision.

I have lived in GA all my life and do not know any properties currently at 50k to 100k that are amazing. You might could find one 6 to 7 years ago at the bottom of the market but not today. Now there are junker properties in bad areas that some investors pass off to out of towners as (good areas) or (up and coming) that are really crap holes going down hill when the economy hits it's natural down cycle.

The people selling you these types of properties ask to see properties they own there and how they have performed over the years. If they are just selling but not owning in those areas it can be very telling . What it can say is they believe in buying to quickly resale but not hold in those areas because they do not believe in the viability long term.

Good luck. Hope it works out for you but I have seen over a decade on here countless tries buying low end properties states away and it rarely works out.

If you are an accredited investor there are likely much better avenues for investment and less headache for the same return available.

James Wise · Answer

Welcome to the site.

Lance Johnson · Answer

Hey @Pearly Tan!

Is there a reason why you chose Cincinnati over places like Cleveland, Akron or Toledo?

Dipping my toes in the waters of Cincinnati? Atlanta? STL?

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