All Forum Posts by: Anh Nguyen

I currently have a stock portfolio that I myself direct and it's been generating returns very well - consistent 15%-20%. I have this portfolio during my college years. And now that I just graduated and started to work for a tech company in the Bay Area, I was given the option of contributing to my 401K. They will match 100% for the first 2% and 50% for the next 1% of my paychecks.

When I calculated the pros/cons, I figured that with the doubling money as a pro, compared to the cons of not being to direct the investment choices and returns are typically average at 7%, I decided to not contribute. Another reason that got me escape from this is that I avoid illiquidity aspect that the 401K contributions cause. I have put a good amount of money into my personal portfolio, and I'm trying to save cash on the side in case I need to make a quick jump.

However, when I came cross the community's posts, I realized that I can borrow the 401K contributions to purchase real estate, which I'm trying to pursue (for either investing or buying my first house).

So as of now I'm in the middle of the path trying to figure out if it's worth putting more money into 401K. The deadline to apply is coming due soon, so I'd appreciate any help! Thank you!

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Originally posted by @James Wise:

Originally posted by @Anh Nguyen:

Hello guys,

This is my first time posting in this forum even though I've been following the site for about 2 years now. I'm living in the Silicon Valley and about to graduate college with an upcoming job as a Financial Analyst for a tech company. But I've started looking into investing in real estate after getting hit by the BiggerPockets podcasts on Youtube, which makes me want to pursue my financial freedom. I was brainstorming to have my first property out-of-state because it's impossible for a college grad to buy a house in the Silicon Valley right now. But I have enough savings for a down payment for a single-house rental property maybe in Texas (ranges from $150k-250k). I've listened to the podcast and figured that it would be tough to pursue an out-of-state property for my first deal. So I'd appreciate if I could have any advice as to what I can best handle the situation. Thank you!!!!

Welcome to the site Anh. There are many markets available. Cleveland is the one I am most familiar with and it's also very popular with investors across the USA so I figured you'd get some value out of reading The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.

In addition there are tons of other turnkey markets out there besides those listed above. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

Cincinnati, Ohio
Dayton, Ohio
Toledo, Ohio
Youngstown, Ohio
Cincinnati, Ohio
Memphis, Tennessee
Saint Louis, Missouri
Indianapolis, Indiana
Detroit, Michigan
Erie, Pennsylvania
Louisville, Kentucky
Milwaukee, Wisconsin
Jackson, Mississippi

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or lose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
Make sure your property manager is a licensed real estate brokerage.
Google Clayton Morris scam and/or Morris Invest fraud for a cautionary tale of what not to do when buying turnkey real estate
Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.

Hi James,

Definitely some solid info there and I appreciate you for that. I'll look into those areas provided and hopefully I could make up my strategy based on that. You've also mentioned Memphis, TN as one of the potential areas. Can you give more details as to how the area is growing? Hope we can connect!

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Originally posted by @Tina Sandoval:

@Anh Nguyen Welcome to Bigger Pockets! There is loads of information on the site. Make sure and listen to the podcasts as they are some of the best!

I have been an Investment Broker for over 16 years in Memphis, TN. as well as the surrounding areas (Mississippi/Arkansas). Over the past 13 years Memphis has been on the top 10 list for cities to invest in. My advice would be to get a good team of agents (looking for under market value properties) as well as a trustworthy property management firm.

I am happy to help you with any questions you may have - Feel free to IM me and I look forward to hearing back from you.

Best and Stay Safe!!

Hi Tina,

Thank you for the info! I know that getting together a solid team is a must, so I've just got some readings and podcasts to go through as I'm trying to understand the process. On a side note, I've heard that Memphis has some solid opportunities for buy and hold rentals. I'll need to do more research on that. Hopefully we can stay connected!

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Originally posted by @Dean Harris:

@Anh Nguyen Welcome to one of the best sources of investment information that you will find in BP!

I own a portfolio in Memphis, TN and I am seeing some really solid cash flow. I also own a few in Dyersburg, TN and that area is really growing as well. You will find a ton of opportunities in Memphis and West TN. As you begin to source properties in these areas and talk to agents, property managers and other property sources, ask them if they own buy and hold rentals. This will be a key factor in my opinion on the type of advice they give you and the type of properties they send you. Valuations in Memphis can change from street to street so be sure that you can trust your property source.

I'm happy to answer any questions you may have on my own personal investing experience in Memphis. Best of Luck to you and stay safe a healthy during these crazy times!

Hi Dean,

Thanks for your advice. I've heard quite a bit of opportunities in Memphis, TN but I'lll definitely need to do more research about the area. What is the typical price range for a single family rental there?

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Originally posted by @Corby Goade:

I've helped tons of people in the Silicon valley invest out of state. The best place to start is identifying what your long term goals for investing look like and work backwards from there. Too many new investors start with "I want enough cash flow to be free" and they stop there- you have to understand the balance between cash flow and equity and how they work together. Feel free to reach out if you'd like to talk strategy, always up for some REI chat!

Hi Corby, thank you for your advice. I've thought about cash flow and equity for a while now. I currently want to pursue the cash flow route since I don't have much to invest in areas that appreciate a lot but in the long run I'd prefer the equity one. How should I calculate my strategy into these 2 different time period??

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Originally posted by @Eric Ducommun:

I am a big fan of investing remotely for several reasons -- and I don't even think price is the most important! First, and most importantly, investing somewhere other than where you live makes you focus on the fundamentals. You will pick a location that is most aligned with your personal strategies and then a property that will help meet your goals. Next, you will be able to systematize your business much better than if you were present. I have more in my bio on how I do each of these. Best of luck in your journey!

Thank you! I figured that having a solid team is the most important part and I will make sure of that before going for my first deal! Hope we can connect!

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Originally posted by @Ali Boone:

Here's some more info to get you started in thinking about it...

https://www.biggerpockets.com/...

Ultimately you first want to figure out how you want to do it, like which strategy. Then you can start down that path. Of the two in the article, I've always gone the turnkey route specifically for the hands-off and less-stress opportunity. If you want to put work into something or do it all yourself, I definitely hear David Greene's book is the way to go.

Hi Ali, Thanks for your insights. I've just checked out the article and gained me some knowledge about out-of-state investing. I had some ideas in mind and will educate myself more to confirm my strategy. Hope we can connect!

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@Alex Olson @Nathan Gesner thank you so much!I have just purchased the book and relistened to the podcast to go through the process one more time. Definitely will need to master it before going crazy!

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Hello guys,

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All Forum Posts by: Anh Nguyen

Anh Nguyen has started 2 posts and replied 9 times.

Post: 401K Contributions: Yes/No?

Post: Newbie needs advice for investing out-of-state

Post: Newbie needs advice for investing out-of-state

Post: Newbie needs advice for investing out-of-state

Post: Newbie needs advice for investing out-of-state

Post: Newbie needs advice for investing out-of-state

Post: Newbie needs advice for investing out-of-state

Post: Newbie needs advice for investing out-of-state

Post: Newbie needs advice for investing out-of-state