All Forum Posts by: Aaron Smith

@Emily Jefferies

I just like knowing if I lose a tenant, the others are going to be there to pick up the slack. If I lose a tenant in SFH, I'm on the hook for the mortgage. And they generally cash flow better, whereas SFH tend to appreciate better. Just appeals to me that way.

Welcome @Emily Jefferies! 

I wish I had started this journey at your age that's for sure! Make sure you read up on all of the areas of REI, and get to know the one that interest's you the most! There are so many avenues to REI and it can become overwhelming.

For example, I'm going into multi-family housing (MFH) rather than single family housing (SFH). Just what appealed to me more. There's also wholesaling, commercial, RV parks, Trailer parks, etc. So hit the forums and start reading up!

Good luck and feel free to ask any questions you may have!!

Aaron

Hi @David Louthan, below is the link to the Utah Real Estate Investors Association. It's a good place to start. Also, call around to the local real estate offices, they may hold meetings as well. Good luck!

Utah REIA

@Todd Summers it's a bit worrisome for sure, only because you're going to have to rely on a good property manager. And yes, I will be travelling to see the property because I need to make sure what is being told to me is actually what was seen, if that makes sense. 

Plus, I want to get a sense for what I can do with the property, what I think needs fixing to my liking, meet the tenants, talk to the owner, etc. 

Any investment, in or out of state is a risk. Even in state, I would use a property manager because I don't want to deal with tenants. But that's just me. 

Hi @Todd Summers,

I'll say this, don't be afraid to look outside of UT. AZ has a TON of good deals, as does MI and TN. Utah is just a hot market right now and, as you pointed out, unless you're willing to BRRR an older property, the cash flows aren't good enough.

Eventually, I'll work my way back to Utah, but for now, I'm about to put an offer in on a 15 unit place in Detroit for $200k. 

Good luck, and all the best!
Aaron

Welcome @Josh Clunas! As a beginner myself, and as is oft repeated by pros, find an area you REALLY enjoy and focus on that, since you've seem to hit all the areas lol 

Read up on MFH, SFR, wholesaling, trailer parks, trailers, you name it. Eventually you'll have that "AHA!" moment and find the area you love. Eventually, you'll broaden your horizons, but to start, just pick one area and go for it!

Again, welcome. And all the best! 

Aaron

@Thomas Bailey just Google it.

There may also be local real estate offices offering meetups as well. 

@Douglas Larson Thanks! The way I see it, there will always be risks. This is no exception. I can't afford Utah. Not when it comes to cash flow. And Detroit is a great town. Despite it's shortcomings. And I haven't signed the deal yet, so if it turns out I don't get a good vibe, I'm not out anything! :D 

@Sam Newell throw me the excel sheet too, if you don't mind? Thanks!

@Sam Newell Michigan offers far better cash flow deals than Utah. And all of my properties will be buy/hold. I'm not interested in flipping. Nothing against it for sure, just not my bag :) There aren't many, if any, 15 unit apartments for the price here in Utah comparatively. This property is a 15 unit bldg for $230k. Now, it's C- property, mostly because of it's location. I'm okay with that. 

I'd LOVE to find the same property in Utah for the same price, but our market is WAY too hot for that. And I have no problems with looking outside the state and having a management company do the work for me. I think people are too afraid (my wife included) to consider that when starting out. 

Me, I'm more than willing to look, and think, "outside the box" if you will :) 

My initial offer will probably bee $200...maybe $210. He's had this on the market for 6 months, and my guess is because nobody has a clue about his expenses, and neither does he. 

And @Sarah Lorenz, PM me their name/number so I can reach out to them, if you would?