All Forum Posts by: Bracken Bjorn

@Brandon Sturgill

Thanks for the insight. I guess the leg work and he fact of being remote scares me, but so does any investment! I understand the value of stretching our comfort zones. Though I still feel like I have lots to learn, and I may always feel this way, there has got to be a point in the near future where I am ready to invest. Staying local would make capital the limiting factor where my restrictions out of state would be additional research. The latter would be much faster to overcome.

Aside from interviewing PMs, what are some good ways of identifying markets relevant to me and my goals? Is there a method to the madness or just a shotgun approach until you find one that works?

@Account Closed

Your post reminded me that I should look into further specifying my REI goals and criteria. Currently, I think cash flow is my priority. Predicting appreciation seems like a big gamble to me. In my local market, big appreciation is almost a sure thing, but the prices reflect that. I also value cash flow with intent to fund a fix and flip as my first primary residence in the next 5 years.

I have been analyzing local deals using the BP calculators, all of which leading to me thinking there is not a current future for me in my local market haha! I will have to start analyzing in other markets. 

Tommy,

Also following this post. I am 19, a college student working 2 jobs, and discovering a passion for REI as well.

While I am still learning and raising capital for a down payment, I have found it very helpful to max out a Roth IRA each year. The plan is for this money to still be earning interest while I continue to learn about REI and get through college. When I am ready to make my first deal, the principle in the Roth will act as my 3-6 months of reserves.

Hope this helps,

Bracken

@Sean Nava

Currently, being a young (19) college student, I am always on the move, never settling in one location for more than a few months. Therefore, I have a hard time committing to a house hack which contributes greatly to my problem of raising capital for a conventional mortgage with a 20%+ down payment instead of alternatives such as an FHA.

In turn, this makes me a big fan of HELCOs, but still, that initial investment is going to be a tough one. Plus, I don't like the idea of being overly reliant on HELCOs without any cash flowing properties. There's potentially a domino effect in the event of an unforeseen major expense exceeding my reserves (mainly thinking in terms of natural disasters) affecting my whole portfolio.  

I do recognize the value and potential for great gains in doing a fix and flip and it is definitely on my radar. However, that presents a whole other slew of financial barriers in funding the repairs. This is why I value cash flow in my properties- to finance repairs in a future flip. 

Tentatively, I think I will work hard to buy that initial property locally, valuing equity and appreciation over cash flow. I can then use that equity to leverage a second deal (HELCO), perhaps out of state, with a cash flow focus. Perhaps 5 years into the future, when I have a more stable life and future plan, I can use that cash flow that has been accumulating over the past few years to fund a flip and potentially make some serious money. This 5 year plan allows me to test multiple different strategies of REI, learning lots along the way, and help me figure out what my "niche" is.

Just thinking out loud here haha but I appreciate your comments to inspire me to further think through my real estate journey!

Best,

Bracken

@Sean Nava

Though it presents a pretty big barrier to entry for a first time investor like myself, appreciation is a strength in our market that I now realize I undervalue. If lots goes wrong, the rapid appreciation and hot market provides a good exit strategy. I also feel like it is pretty beginner friendly in the sense that no cashflow or even slightly negative cashflow still provides opportunity through equity gain. Also, it seems fairly safe for someone like myself- looking for a first investment and of course building wealth, but perhaps even more, trying to "get my feet wet" and learn the processes while getting a feel for real estate. A good and forgiving opportunity to "take action"

 Thoughts?

Thanks,

Bracken

@Emily Cressey

Thanks for the input! I am still in the education phase and frequently finding myself in the trap of "I must do it all". However, as you mentioned, there is people for that who will more than likely save you money when you consider the time involved. A jack of all trades is a master of none!

I like that tip of calling property management companies in different cities to learn the market- something I will do if I choose to invest out of state. Perhaps I will PM you for your contacts in Ogden if I decide on that market.

Best,

Bracken

Hi!

I am a first-time real estate investor looking to make my first deal by the end of the year! I am located in Northern Utah and would love to invest locally, but it does not seem feasible for my strategy and financial position. I am looking for insight on whether out of state investing is a good strategy for a first-time investor and/or a fit for me and my situation.

A little more on my situation below…

I want to do a rent ready (or close to it) buy and hold SFH. However, Northern Utah seems to me an extremely hot market right now, with deals closing before they can even hit the MLS. It is also an expensive market (for me) with the lower prices being between 200-250k though most seem to be 300k+. To reach my goal of buying my first property by the end of the year, I would have fewer options as I would be looking to buy much closer to the 200k mark. This has got me thinking if my cash would be more valuable out of state.

In my mind, out of state investing means extending the education and research phase and pushing the 1 year goal to maybe a 2 year goal. However, I could very well be 2 years waiting to invest locally as I wait to snag the right deal or raise more capital to give me more options. Also, achieving the 2 percent rule in my local market is near impossible but could be achievable elsewhere.

Thoughts?

Thanks,

Bracken