All Forum Posts by: Brian Ploszay

Andersonville is a solid neighborhood.   If this is your first property, I would suggest you do not take on such a big project.  There are so many variables with construction and first timers are at risk.

There will be other properties.  Few ideas:  I find that square footage for these apartments generally range from 800 square feet to 1200 square feet.  Sometimes you will find larger.  Try to buy larger apartments if possible. 

Last, recognize that the rental market is soft in the City.  You're in it for the long term, you'll be fine.  But it is soft.

If you want to keep it, you can refinance it.  Be modest though and only take 50K or so out.  

I have been a critic of Turnkey properties on Bigger Pockets, because I view these properties to be mediocre investments.  Typical turnkey providers sell rented properties in lower middle class neighborhoods.  I own similar properties that I have put together for my own portfolio.   Turnkey providers were charging around 30K over my costs.  Nice profit.   

Parts of Texas are going to be the high growth areas for the next decade.  Small towns in Texas may not benefit.  Yes, it is a big state.

Taxes are high.   Also get to be knowledgeable about foundation issues.  In Dallas, and Austin, there is soil moisture change that often cracks foundations.

Any one that says they went from 0 to 100 doors in a short time, is suspect.  It took many years of making mistakes, correcting and building a better business plan to become a better investor.   Sometimes when the market is hot, you get lucky and have great returns.  But usually being a landlord is a long term investment plan.  And buying rapidly shows inexperience.

I also have been highly critical of turn-key investments, especially lower income neighborhoods / rust belt cities.  

Last, any real estate guru that is selling "education" must be suspect.  Running a successful real estate investment platform is a full time gig.  Who has the time to promote their guru advice?  And why?  I'd want to be where the action is - buying more properties.

Cash flow or appreciation?   Growth markets don't appreciate if new construction is not prohibited.  In the next 10 years, Austin, Tx surely is a growth market.   For cash flow, quite a few places in middle America, but be careful with tertiary towns.  Or rust belt towns.  Avoid class C properties as a beginner.  

I see you are from Los Angeles, an area that I grew up in.  That statement has been said before of Southern California.  The real estate market has very different economics compared to most of the country.   It is not because everyone wants to move to Sunny Southern California.  It is because of a 30 year constrain on supply.  California is the hardest state to build new housing inventory.  Los Angeles is a very horizontal city for its size;  it sprawls.  Most major global cities have far more vertical housing options, which allows for more units to be built.

Get a survey.  It is not uncommon to have a house on two lots.  The house might sit on two parcels.  Maybe the other parcel is a pure piece of land.  In hot neighborhoods, that would be a good buy, because you can build another property

The area - Carol Stream is in DuPage County.  It is solid real estate.  Overall, industrial real estate is the bright spot for commercial real estate.  Future trends - it is hard to build new competitive buildings in the area, so the supply can't grow too much.  As far as cap rates, go onto CoStar and pull comps for the last six months.  A lot of the comps have to be interpreted, because some of the properties are user space.  So look at sales per square foot prices, as well as cap rates.  

Never compete with your clients.  If you were further down the line with him, I say it is a breach of agent duties.  You obviously feel negative about this;  you have posted on B.P.    Find another agent.