All Forum Posts by: AJ Singh

@Vandan Mehta

I Started my RE journey with 3 condos in San Diego near UCSD. The HOA fees were a huge negative cash flow item and rents could not keep pace with the monthly dues raises very year. Sold them all in 2016 and moved funds to OOS and local RE investing.

i would suggest a 2 to 4 multifamily with positive cash flow. Dont get suckered in with a sales pitch from a RE Salesperson that you can achieve market rent in Ca. Either get it delivered vacant or work with present rent numbers and property management fees . The interest rate is probably in 5 percent range for non owner occupied..

Best of Luck !!!

no better than managed syndication model on a single family asset.

the real winners will be the operators and property management companies.

@Ruturaj Patil

Why dont you visit Memphis and meet some agents?

that way, you get to know neighborhoods and get your questions answered!

@Mustafa Nemat Ali

please visit the neighborhoods where you want to invest before committing to any purchase. 

As @Ruchit Patel mentioned, this price range is not the best for OOS investors.

A good 3 bd house in class b neighborhood in Memphis is not below 165k to 175k currently.

@Michael A.

Being an OC native, i would not go down the path of $800kish investment with limited down payment. just the principal and interest will surpass the monthly revenue in any southern california county at the current interest rates.

Bring your savings up to 100k and then start your investing journey locally . You can find properties in riverside and san bernadino county matching the rental yields of out of state investing. The turnkey route of cash flowing markets is good but you need to scale up quickly for the cash flow to make an impact in your life.

@Eagle Yeh

38127 is a tough zipcode. i would leave it to the local investors . The only reason you are getting a bite at this is no one local wants it. There are slim pickings in value add or wholesale plays nowadays. 

Try to buy in better suburbs like Cordova, Bartlett, collierville, Southaven, Olive Branch etc. these are great neighborhoods for equity and cash flow. you should be able to get a starter house in 150k to 175k and yielding 1300 to $1500 a month. rents have shot up in good neighborhoods of memphis over the last 3 years.

@Abdul Azeez

Why is the appraisal short? has the market or comps changed?

do your diligence. you dont want to sit on a property for 9k difference . maybe a little bit discounting is needed to finish the transaction

@Jenny Elomaa

Drive one hour to Inland Empire counties of Riverside and San bernadino and you can find good multifamily with better tenants than the OOS markets. These counties are landlord friendly than los angeles or orange county. 

Find a value add deal and you can make great rental yields. 

@Meesha Parker

You can lock in a fixed mortgage rate on 2 to 4 units. On 5+ units you will get a 5 or 7 year fixed. 

i would invest in 2 to 4 unit and learn the game. If you get a 5+ unit as a value add deal. then that should be considered. 

Dont be afraid to self manage if the deal is local. 

@Anthony Kono The multifamily starting in millions also has great rental yields. Dont compare them to cash flowing markets. This really comes down to what you feel comfortable with. Local makes most sense starting out. you can also look at condos and townhouses if the numbers make sense after HOA dues.