All Forum Posts by: Antonio Cucciniello

@Ethan Brown This is something that really got me when I started. I was like I want cash flow for passive income, but I also need appreciation cause what happens if the home value drops!

But then I realized, if the day I buy it, it cash flows, and let's say there was a market crash the day after, that is ok. I mean it sucks that I won't have extra equity in a property, but really it does not affect my cash flow. I am still making cash flow.

Let's look at the other scenario. You buy a house solely for appreciation. It does not cash flow, and instead it costs you $200 dollars a month to cover bills since the rent.

But the home increases 10% over the next 2 years. So you gained some equity. You will only get that money if you sell, and then you still need to pay taxes on that (unless you 1031). 

In one case, you have cash flow no matter what and you have to just wait out the drop, the other, you need to pay a bill every month until you sell for some profit down the line.

@Mizy Kalmanson I got some knowledge here, as I started investing in NYC and was like how do I turn this into a process??

So, you want to use data to inform your decision here. Don't use just feeling, or you think this area works. Prove it with numbers

Look up crime rates, property tax rates, schooling, etc.

I would do this for a few other cities and compare them to Cincinnati in order to know if that is even a good place to invest!

What did you fully include in your analysis here? Write it out 

@Kami Ellies Welcome to Texas! I just moved to Austin from NYC.

Property Taxes are just part of the formula. You need to be able to budget for them. 

Just like some areas have higher home prices, you need to budget for that.

It comes down to a formula in the end!

@Julia Sung I just moved out of the city but I lived there when I started investing so I ran into this same issue.  Within 1 hour of the city is a little difficult if you are looking for cash flow.

Edision, Newark, New Brunswick potentially, when you go up to 1.5/2 hours out you have better options with mercer county in NJ

@Alex Mason Here's the thing, every market has its issues. If you found one that has cash flow, but the older homes are the issue, then you just need to budget more money for repairs and capex than normal! 

@Michael Avillion I would take the money you do have an invest it in a cheaper market and if Fayetteville is what you know that works even better because you will have the confidence to invest there where as what blocks most people from doing out of state is not knowing much about the market there.

You can try to use your VA loan but only if you find a property that will cash flow when you move out!

@Patrick Kelley If your goal is 10K in passive income, I would be personally looking in markets where you can optimize for cash flow and have appreciation be a secondary goal. 

Alot of beginner investors try and find both at the same time. I think that makes a challenging time to start. The quickest way by going the traditional route would be using your 100K to buy 3 properties in a market where you can get 300-400 in cash flow this year.

Save that cash flow, and the income from your job, repeat the process the next year. keep recycling the money

@Jakub Musiatowicz Welcome! Great that you already have an apartment.  I don't know anyone but have you tried searching here on BP for investors from Netherlands?

@Jay Malaviya if you need an agent/wholesaler there I have someone I can recommend!