All Forum Posts by: Russell Austin

Chris,

Thanks for the response. That greatly helps.

Russ

BP,

Probably been asked before but for those who have refinanced investment properties, up to what LTV will most lenders refinance?

Thanks.

Please do not take what I say as the gospel.  I am just as adrift as any Newbie in the process of analyzing market data, identifying potential deals, and applying the proper strategy.  However, If there are any words of advice I can provide from my year and a half old real estate investing career they are these: FIND A MENTOR!!!!!!!

It was just recently that my wife and I crossed paths with a gentlemen who invests heavily in our area.  We talked briefly on our intentions and listened closely as he relayed his three decades of experience.  Like all of the BP podcasts and books suggest, we offered to take he and his wife out for a bite to eat in hopes that we could learn even more.  BEST REAL ESTATE INVESTING DECISION YET!

My wife and I are too young to have experienced the market conditions both pre- and post- crash.  We are both 26 and are just beginning our careers.  Although we have spent many years studying the crash in an effort to learn more about market indicators and cycles, we still lack the insight to accurately identify our market's current cycle.  Furthermore, we lack the ability to pair the proper investment strategy to that cycle.  This is where my newly found mentor has provided immediate and overwhelming value. 

He accompanied me yesterday as we walked my first multi-family.  It is a recently renovated duplex in a neighborhood with strong, stable rental demand.  At face value it appears to be a solid deal.  After running our calculations however, we determined that based on its current income and expenses, the property is worth just over half of its listed price.  My mentor then began to describe the history behind that particular neighborhood as well as the market as a whole.  He described the different market indicators he is seeing and how those compare to those he saw in the past.  He went on to surmise that our particular market peaked in 2014 and is on the decline.  He suggested I continue to look for properties but play close attention to the indicators we discussed.  He instructed me to have patience and how to use those indicators to identify neighborhoods with the most future growth potential.

Although I did not walk away from yesterday's walk-through with the deal of a lifetime liked I had hoped, I left excited and even more determined.  The value a mentor provides cannot be overstated.  It is critical that as Newbies we learn from those who came before us.  Like most of you, I have read just about every real estate investing book I can get my hands on and listened to every BP podcast.  I have learned so much from doing so and even attribute my initial interest in this career to this site.  But when it comes to practical application, having someone like my mentor to help me through each phase of a deal is a game changer.  He takes all that I have learned from the BP community and the countless books I've read and helps apply those principles seamlessly to my business.  I have no doubt that with his counsel I will achieve all of my investment goals and more.  I hope for all you that you too can find a mentor who will teach you as much as mine has.

Happy investing!

@Troy Durrette, for sure.  Don't have anything formal planned.  But I'd be interested to meet to discuss ideas.

@Greg Ragins sounds good to me.  If I can figure out how to PM you I will send you my number so we can link up.  @Junior Matthews, get settled and hit me up if your schedule allows.

@Greg Ragins, @Junior Matthews, @Kyle Kreider, @James P. Hill

Gents,

I am a newbie investor in Savannah.  I am active duty Army and have been looking to establish a network here to discuss all things Savannah real-estate.  If you're interested, we could simply grab some coffee sometime to meet up and discuss our plans/goals.  I am really just looking to bounce ideas off of like minded people and help other investors in any way I can.

Let me know if this interests you.

Russ

Hello everyone, I am new to posting on BP, this is my first post in-fact.  I apologize in advance if this is a bit lengthy but I have several questions for those more experienced.  I am a newbie investor in the Savannah area and am currently transitioning out of the US Army.  My wife and I are eagerly looking for our first deal.

We intend to implement the BRRRR strategy if everything lines up correctly. I have been scouring Zillow and other online resources for months in an attempt to gain a solid understanding of the sub-markets surrounding Savannah. For those not aware, Savannah is home to two large US Army bases. Our strategy is to target the standard 3/2 with a two car garage in neighborhoods frequented by military families. Current market rent in my target sub-markets is approximately $1300. Consequently, monthly military housing allowance for a Staff Sergeant in the US Army, my target tenant, is $1300 and the standard timeline for any service member at a particular base is on average four years. As a result, I feel that young military families would provide me the most long-term, stable cash flow.

That being said, there are three sub-markets, each with specific neighborhoods that meet my criteria. Housing prices in those markets range from $90-150k and they are: Richmond Hill, Georgetown, and South Pooler. There is not much opportunity within those target neighborhoods, however, to implement the BRRRR strategy. Most property prices are set at market value and offer little in the way of rehab. Those that are in need of slight repair are in markets I do not intend to invest. Although rental demand remains high in those markets, they do not meet my military criteria and/or the tenant class is too low for me to feel comfortable.

In your experience, is it best to maintain my focus on the markets I am most comfortable, understanding that I will have to pay market value or wait for market conditions to change? Or should I expand my focus and pursue houses more suitable for the BRRRR in markets that tenant classes are lower?

Also, the target markets I am focused on are not in the greatest school districts.  School quality seems to have no effect on rental demand but will certainly effect my ability to sell the property in the future.  How should I factor schools into my decision on where to buy? 

I am itching to pull the trigger so I can get in the game.  Any advice you can offer would be greatly appreciated.  Thank you.

US Army Officer excited to learn more about the opportunities offered by investing in real estate.  My wife and I live in East Georgia and are currently looking to buy our first property.  We intend to use the benefits provided by investing in real estate to expand to other opportunities and ventures.