All Forum Posts by: Andrew Rosenberg

@Dan Gustavson Stone Jin is gonna tell you Toledo, specifically Sylvania.

@Ari Hada just started using rentometer to compare "advise" and estimates people give me. Comps are more art than science than I'd like. Numbers can give the illusion of certainty.

Forgive the classic "it depends" answer.  However it really depends on where you live.  I live in Hawaii and we have some of the worst metrics: high median prices; high price-to-rent ratios and really tenant-friendly laws.  Much like Californians, a lot of Hawaii investors invest out of state.  So it really depends on where you live.  If you live in Dallas, Boise, Colorado Springs, Huntsville, etc. (no offense to other cities, can't list them all) you'd be a bonehead not to invest in your backyard where your network of friends and family gives you an advantage.  Alternatively, if you can drive to an area that cash flows well, that's undergoing gentrification or has some catalyst for growth yeah you should invest out of state.  

@Ulisses Barquero Congratulations!  In-State?

@Stephanie Barthelemy 1) Without being paranoid, instinctively discount and thoroughly verify rent projections. Can't tell you enough how many inaccurate (always high side) current rent estimates and unrealistic rent growth rate projections I've heard/read and suffered from. 2) Have mental and $ reserves - you have to accept that "stuff" will happen. Known to many investors that sold after a minor setback or a series of objectively minor challenges. 3) Never let "Bragging Bob" get you down - you will invariable meet this person socially, at work or god forbid in your family. "Bragging Bob" got a lower rate, has a better cap rate, choose a fast growing city, etc. and he/she is just so excited to let you and everyone know. Smile, be polite, and don't waste a second on their one-upper b.s. The goal is what's good for your pockets and your situation. keep your ego in check and do you. 4) contractors that finish on time and under budget are like unicorns that fart rainbow-colored glitter. Not saying it doesn't happen (perfect results with contractors), but your financial modeling needs to account for an oh crap scenario that includes higher costs and delays (lost rent).

@Jacob Webb Welcome to BP Jacob. Good luck!

@Joel Culler Pay off, if any, high interest rate loans and shore up credit score (if low). There's a flavor for every type of real estate publicly traded as a REIT. It's a way to dip int real estate, learn and have liquidity. Probably sounds corny, but for many professionals their best investment is in themselves - degrees, certifications, continuing education. Best wishes and good luck!

@Christopher Smith That's great you had such courage and crash back in '08! I made so many mistakes but buying in '08 with cash got me a low enough price to cover my beginner mistakes. With rates so low why not look into cash-out refi to buy more properties now with rates historically cheap? For me is probably more covid fear than rational math, but we all have to operate within our comfort zone.

Devin, what area?  So hard to comment otherwise.  Why limit yourself to your "area".  Cash buyers include OOS Investors.  Perhaps widen your potential client base?  How are you locating buyers?  Talking to lenders, property managers, and contractors?  While they might not be interested themselves, they may refer you to clients of theirs that they know have your type of properties on their radar.  My apologies, just really hard to comment/ask questions without some specifics.

My only caveat would be having adequate reserves. The assumption that credit (particularly short term revolving credit) will always be available played a big part in the making the 2008 Credit Crunch worse. When credit dried up, many players (usually arrogant corporations) with profitable properties had to resort to bankruptcy protection because of cash flow shortages. Credit Crunch was only 12 years ago, hopefully people learned their lesson or study history.