All Forum Posts by: Andrew Fingado

I just may do that, but I probably will wait until my portfolio thickens up a bit and I cash out refi and head into some other markets.  I'd like you guys to see the full plan completed and right now i'm in the middle stage.

I agree with some of your points but I have to represent my hometown here.  There are LOTS of decent areas in Richmond.  I grew up in neighboring El Cerrito, moved to Richmond two years ago so i've spent all my life in this area.  There a lot of misconceptions about Richmond if you aren't from around here.  

I live in the hills, and I walk around my neighborhood at night no problem.  Point Richmond, East Richmond Heights, Marina Bay, parts of Hilltop mall, Richmond Annex, and North and East range from perfectly safe to high end.  Up near where I live houses can sell for up to 750K -1 million + with a nice view sitting above Arlington Blvd.  

That being said, I do agree with you in some ways and hence the reason I invest out of state, for now.  Maybe that might change if I can find a property in the right location.  The prices in the "average/nice" neighborhoods don't make any sense from an income property standpoint.  Maybe from a buy and hold for appreciation one, but there's going to be a lot of negative cash flow from the get go.

It seems most successful deals are being made via high end flips, fix and holds/multi family holds in low income areas, or those getting into gentrifying neighborhoods like West Oakland/Emeryville border area.  There are exceptions to the rule but this is just what I've been witnessing based on who I talk to.   

@J. Martin does make a good point in that if your mindset is there aren't a lot of good deals well you've already lost the game mentally.  I fell into a bit of that trap where nothing was working and I just gave up.

That being said, the market was just too high in terms of entry for me since I had no access to financing, couple that with being a bit impatient and yeah I took my cash out of state.  However I love the high cash flow I get out in the midwest, and the people i've linked up with are quality, quality folks who put me in good neighborhoods.  I actually think this is a good chance to remind everyone there's a lot of misconceptions about markets.  

Some say the bay area is overpriced, cash flow is impossible, no deals to be found, in a bubble, etc.  Now I will say it can be difficult and competitive.   However if you work really hard enough yes there are deals to be found.  I mean this thread is full of great deals where people just made a killing.  With the market rent increases, stability, appreciation, and constant supply of tenants, long term it's really a great play (hell, even short term in many cases, as J's properties are a great example of).  

That being said, the midwest ain't all full of decaying crap either in war zones.  I am up to almost half a dozen places out there where my cost of entry is around 30-50K and rents are 700-1000.  Good neighborhoods.  If that isn't enough, i'm starting to get houses now where I am getting in with tons of built in equity.   Example, just bought a place out in a middle class safe suburb in Michigan with probably 50K built in equity.  44K purchase all cash, worth nearly 100K, renting for 875. Got another one lined up too around the corner with similar numbers.    So basically what i'm getting at is nothing is black and white.  The bay area has deals to be found if you work at it, and the midwest isn't just a ruse for desperate CA investors who only get burned.  

I never thought i'd say this, but reading this thread has got me itching to do something around here soon!  Like today!  You never know maybe i'll start my own thread soon with news that i've come home again so to speak.  Rent control scares the crap out of me though, you have a lot more guts than I do J.

So wait a second, you can get houses worth around 50K and they will NET 900 per month?  Are these places renting for $1,500 per month or something?

Overall I like your plan.  As to buy them cash or finance from the get go is really a personal choice.  Buying cash frees you up to get fixers and better deals.  If I were in your position i'd probably finance all of them though.

I'm sure there are many investors from the Detroit metro area who clean up real well.  Like @Joe Villeneuve said though, it's very tricky and I think it's better left up to the locals.

 Looks almost too good to be true…..but then again I don't know the Detroit market.  I heard it's very tricky…many areas are block to block.  As an out of state investor i'd stay far away though and stick to more stable areas that are sure to win.  I will end up paying more for the house (30K-50K for 700-900 month in rent), but at least I have peace of mind.

@Andrea DeBell Welcome to the community.  I think you will find the bay area following here is strong.  Any questions you have will not only be answered quickly and clearly, they might even start a 5 page dialogue!  You've come to the right place.

Well said and good points.  When we talked on the phone previously it really sounds like your turnkey company understands the importance of fairness and honesty.  I'll be talking to you more soon about Indy.  I'm almost ready to pull the trigger out there just have to get some things in order.

@J. Martin Good to hear from you again too, and you are welcome.  I always enjoy helping friends out.  Gives us a chance to talk property too and flex my real estate muscle lol