All Forum Posts by: Aaron Weitzman

Hey! @David Matheson, we ended up going with a fourplex for the first property. I took the advice of @Jon Schwartz higher up in the post. It just makes perfect sense at the moment! Low fixed mortgage rates with multi-family cash flow and residential appreciation. We're in central texas and the numbers make sense there. 

@Jon Schwartz That's really interesting, I hadn't thought about an investment from that angle yet!

Hey @Jon Schwartz I honestly hadn't given much thought into the advantages of the current residential interest rates over commercial rates! I've been primarily looking at SFR's, duplexes, and a few triplexes in the San Antonio area. What I didn't realize when I first started checking out deals was how much the property tax would cut into cash flow. I haven't given as much thought to fourplexes as I should. I figured if we did a fourplex, might as well go bigger if we could! I definitely see where you're coming from though in regards to maximizing the multifamily element of a fourplex while utilizing the low fixed rate of a residential loan.

What markets have you been looking into for your properties?

Hello BP friends!

My business partner and I are relatively new to the investing world and are on the hunt for our first property. I have been spending every moment I can devouring every book, podcast, forum post, and anything else that mentions the words "Real Estate". With every market I research and deal I analyze, this little voice in my head grows louder. The voice is telling me, "You're wasting your time with SFR's."

We have the capital, and we have the risk tolerance. Which makes me then ask the question, should we just jump into apartment complexes? I've been reading numerous books on the topic as well so that I'm not a total newbie, although I'm as close to it as they come. I don't see the value in spending an equal amount of time searching for the needle in the haystack house in the grand hopes of cash-flowing $100-500 with current market conditions. I understand that the acquisition and management of an apartment complex is, well, more complex. At this point when I take the economies of scale into account, the only benefit I see for an SFR is the practice of going through the entire purchase process.

Not to discredit the value of first-hand education.  I was the valedictorian at the school of hard knocks, and sometimes I feel like I've never left.  I just can't shake the feeling that I'd be wasting my time going for anything less than a 10-unit at the absolute smallest.  

So, now that my near nonsensical rambling is complete, here's the real question of the post.

If you didn't have a capital barrier to entry, would you pursue larger multi-unit properties over SFR's?

If you've read this, far, I thank you very much and look forward to seeing some insightful feedback!
 

@Taylor L. You're awesome! Thank you.

@Account Closed Thank you for the encouraging words!

@Taylor L.

Thank you so much for the advice!  I definitely see the benefit of the "repeated base hits" expanding my comfort zone and gaining experience.  

For specific market research, do you have any preferred methods of acquiring data?  I ask this because I'm constantly finding different figures on different websites for the exact same city and year.  I'm getting frustrated in my attempts to standardize the data so I can have some sort of accurate information to view comparably.  

Thanks again!

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!