All Forum Posts by: Bobby Kumar

Hi @Jonna Weber,

Thanks for responding!  So what do you think of that project I invested in?  

I can understand the allure of Boise to all of those west coast folks.  However, I am not sure how many larger companies are really going to be setting up in the Boise area when it is no longer as inexpensive.  I have been reading the Boisedev.com site voraciously.  I think its great.  I also love that Meridian city site has posted their long term planned zoning.

What do you think about Nampa vs Meridian?  I haven't been there yet, but they sound like very different places.

Any insight from a local is greatly appreciated!

Thanks,

Bobby

Thank you @Joseph Firmin for taking the time to reply.  I have heard several of Neal Bawa's talks, but have not seen the Udemy course yet.  I will definitely take a look.  

Thanks,

Bobby

Dear fellow BPer's

I am a newby that would love to get some advice from the Masters on which market to focus on for my next investment property.

A bit of background on me: I am in my mid 40's and have a W2 job which I enjoy and pays well. I live in the Boston area. My real estate investing is really a mechanism to diversify my income in retirement which will likely be in about 15 years if I play my cards right. I don't need the cashflow right now. My goal is to have enough investment property cashflow to fund to my basic living expenses and use my stock/401K investment proceeds for splurges, travel, inheritance for children, etc. I am just starting off my REI path and so far am in the process of buying my first 4plex in the Boise/Meridian region which is essentially a turnkey type new construction property. I don't have much time/desire to spend managing/rehabbing my properties, hence the turnkey. I chose the Boise/Meridian market since I read wonderful things about it and the statics/growth, etc was impressive. Also, this property should cashflow decently even factoring in all expenses, maintenance, vacancy of 5-10%, etc. I like the company I am working with and am already thinking about the next 3-4 plex which I would like to do by the end of 2020. This company is offering other properties in Meridian and Nampa in Idaho, but also Provo in Utah along with Surprise and El Mirage in Arizona. They all have similar initial downpayments. Provo has the worst cashflow- only slightly positive which could be easily wiped out with a major repair or extented vacancy. Meridian/Nampa have similar cashflow and is near the property I will be closing on. I have been trying to learn more about Surprise and El Mirage and have only vague ideas about them right now after reading neighborhood scout reports and looking at Zillow along with city-data.

So my question is: assuming a similar initial downpayment, would you recommend:

1- get another place in Meridian or Nampa - I am afraid of being too concentrated in a smaller market, lots of new construction, and not sure of very long term prospects

2- Go for Provo despite lower cashflow, but less new construction to compete with and booming, well educated population

3- Go for Surprise or El Mirage since Phoenix MSA is so hot and booming with potentially better cash flow than Provo, but lots of new construction to compete with.

The properties I am buying would be considered B or B+ class.  

Any advice/insight you can provide would be most appreciated.

Thank you,

Bobby

Thank you all for your input. It is greatly appreciated. Thanks especially since this was my first post!

I agree with getting started first and then sorting out these smaller details. 

Thanks @Andrew Frishman, but for the FIG properties, I would assume you probably should not try to cash out until at least a year or two after it is stablilized otherwise just increasing carrying costs.

Also thanks for your input @Josh Bauerle. I have heard the same advice from others. However, the legal liability is no small issue especially as one builds their portfolio and net worth. The LLC isn't the most important issue upfront, but will be more and more important as we hopefully succeed on our endeavors. Hence the question of how best to start out on the business structure.

Hi @Robert Carlson,

Yes, I'm still figuring out how the whole LLC will work with the loans. I'm actually investing with FIG- fourplex investment group. They build new communities with duplexes and fourplexes geared towards investors in great markets. These are all new construction and require a hefty 25% downpayment on a $700K property, but it is essentially turnkey. They have a good system set up. I won't be making as much profit as if I did a BRRR and there is a 1 year construction timeline. However, I thought this was the best way to get off my butt and jump in with lots of help... Currently the plan is to get the construction loan in my name and then refinance. I believe after refinance I can put the property in an LLC. I know many lenders won't accept this, but the lender FIG works with is used to this since many other investors use an LLC. We'll see how it goes. One thing I did in the meantime is to increase my umbrella policy to hopefully protect me from any issues while I get the LLC worked out.

As for Mass, yes the taxes are high and the new tax changes hurt quite a bit this past April! I'm sure there are deals for investment properties to be had here, but besides during a major BRRR on a >100yr old house in a suburb of Boston, I'm not sure how else one would make money here. Neighboring smaller cities in Rhode Island seem to have much more prospects for profitable rentals with lower capital outlay. I can imagine the DC/northern Virginia area may be harder and harder to find deals at as well.

This is great question Robert. I am in this situation right now. About to buy my first fourplex out of state and hope to add more in the future. Looking forward to the replies.