Shiny Object Syndrome

[Aaron Weitzman]

Hello everybody!

I'm relatively new to the world of real estate investing and would greatly appreciate some help in figuring out my criteria!.  I believe I am currently stuck in analysis paralysis for these 2 reasons.

1) Still working on a list of relevant metrics to analyze the proper States and MSA's I should be investing in.

2) Both of a blessing and a curse.  I do not lack capital, therefore I am getting a little overwhelmed in choosing which initial strategy to roll with.

I'm hesitant to dive too deep into BRRRR for the first deal due to the need for significant renovations. Maybe once I have a better understanding of which market I'd like to invest in I'd feel more comfortable with the idea of interviewing contractors?

Would it be silly to just put a bunch of 20% down payments on SFR's? or should I be expanding my reach towards smaller and mid-size apartment buildings?

I completely understand that this is all up to my own personal goals and risk tolerance. However, I would love to hear how other people have determined their financial strategies they chose and which corresponding markets fit in with those strategies!

Any insight will be greatly appreciated!

[Taylor L.]

Shiny object syndrome isn't talked about often enough! Everything comes down to commitment. If you pick one proven strategy and commit to it, you can do very well. If you're brand new and taking a smaller perceived risk like 20% down on a SFR is what gets you in the game, then 100% do it. It's a proven strategy and if that's what you want to do, then do it.

There's a lot of "I made a jillion dollars on my first deal in two weeks!" marketing out there, and the vast, vast majority of it is BS. The true examples of this are, by far, the exception. However, those stories cause us to put pressure on ourselves so we feel that we need to knock the cover off the ball with our first deal. Not true. 

Consistently repeated base hits will get you very far and will simultaneously expand your comfort zone and experience. It is not silly to buy cash flowing single families if that risk profile and return fits your goals. Anybody who says otherwise is, themselves, silly ;) People have made (and lost) big money on every single real estate strategy you've heard about.

At a high level, when assessing markets we look for: Population growth, job growth, diverse industries, rent growth, stable or increasing rental occupancy, and amenable landlord-tenant laws. Coincidentally, those criteria, when all considered, knock out vast swaths of the country. Filter those results by markets you're already familiar with, or are easier for you to travel to, and you'll have it narrowed down to a handful. Then pick one. That'll at least get you started.

We're all running our own races.