All Forum Posts by: Brian Wilson

@Anthony Greco

A few links I found after a quick google search:

BLS Reports:
https://www.bls.gov/eag/eag.pa_pittsburgh_msa.htm

https://www.bls.gov/regions/mid-atlantic/summary/blssummary_...

Do you know what you're looking for? Most times open source data analysis is conducted by aggregating info from a variety of sources.

@Aaron Bard

Welcome!

I want to provide you with some feedback that you may not get on here from the perspective of having done a house hack myself. I learned a lot. I also lost a good chunk of money (20k) and here is why: my goals changed after I got a life changing job/raise, so I decided to sell. It's impossible to predict the future, but you should be choosing a strategy that aligns with your long term goals. Do you want to buy and hold small multifamily properties in your market? There is nothing wrong house hacking, it's a great tool. While everyone here pushes investing RE, they rarely advocate for trying to pick a strategy that aligns with who you are as a person and who you want to be. 

If you decide HH is for you then my recommendation is this:
consider a SFH with an ADU or with the ability to build an ADU. Expenses on a 4 unit could easily wipe you out when first getting started, especially if something like 2-4 of the furnaces going out. Which 100% happens, ask me how I know lol.

look at who is giving you the info/advice you're getting. RE brokers/agents, loan officers, etc. Individuals that have no financial gain in a transaction with you are often the best providers of objectivity.

**Before someone says "well he didn't underwrite the deal correctly"; I do cost estimates for construction projects for a living, so my numbers were fairly solid going into the deal. Net CF was $500/MO after reserves. My life just changed and it no longer made sense from a ROT perspective**

Response to 1) I agree. Higher priced properties tend to have better rent growth over time in comparison to stagnant markets with no significant appreciation. Certain acquisition strategies, asset improvements, and management improvements, can yield a more balanced CF and Appreciation return. I haven't thought about the correlation 

Response to 2) I agree. Appreciation taken seriously is not a speculation but a calculated assessment. I was referring to those who bought property in a specific area without any research because they "thought it would go up" 

Here are some answers to your questions:

How do I find an agent?
-Word of mouth referrals on websites like this and you interview them. No such thing as the perfect agent, some a really good, some terrible. Ideally focus on one who actively invests themselves. I'd say has at least 2-3 rentals for expensive markets and 5-7 for cheaper markets; ideally more.

How do I find a property manager?
-Use your agents referral, and/or ask around here in BP you can filter by major metros. 

As for you getting your RA license, if you're doing it for the education I wouldn't. I can recommend some books if you want. There are also some phenomenal investors you can read comments they have made on here. I remember spending 3 hours one Sunday just reading through one these peoples comments. Pure gold nuggets that books may not cover.  

If you have any questions feel free to message me anytime. I have invested in and out of state. Happy to help where I can

In my opinion the term "Cash flow is king" is coined for a few reasons.

-Businesses that do not generate sufficient cashflow will fail.
-Cashflow allows someone to quit their job when they reach their FI number.
-It ensures newbies don't focus on speculative market appreciation as their primary strategy for investing.

We all know equity is where wealth is built, and often times those opportunities have limited to no net CF. However, those who are best poised to take advantage of equity plays often have an already high NW or the income to support the downside risk.

 There is a spectrum. I like to call it the sphere’s of competence. Everyone has one or a few they excel in, some they are good/average in, and some they are poor in. If an agent doesn’t have a seemingly strong sphere of competence (unless new), I’m inclined to agree with my partner. From my perspective, an agent is supposed to understand the transaction process, negotiation fundamentals, the components of a home, and the local market they work in. Some of the agents I’ve met have none, or one or two. It’s very unfortunate because they could drastically increase their income with some self/professional development. 

 This plus actually knowing what they are talking about. My business partner is a full time agent and he tells me all the time about how "many agents are genuinely ignorant on real estate", and it's all "smoke and mirrors". Don't get me wrong there are great agents out there. That being said, I would say if you invest in RE as an agent you're already ahead of about 85% of the agent community. If you understand how to communicate with people and solve their needs, you get that much higher to the top. 

Best agents I've worked with have the following:

-Active investor
-Understand what is a deal and what isn't
-Know their market fairly well and will get comps for clients without asking if they have a gap in their pricing knowledge.
-Listens to their client and understands how to best support them.

As someone new to the multifamily space (outside of 2-4 units) I can confirm that this deal is to large for you. Think of it from this perspective. If I were loaning you the money what would I want to see? Experience. If we were talking a 16-24 unit and you hade some duplex's and SFH I could see someone making the leap. However, without having any experience that can "count" I would say you would need an experienced partner to sign their name on the deal/loan. This is costly (can be worth while) but may be a solution assuming you have those individuals in your contacts. Aside from that are you prepared to manage or vet a manager of an asset this size?

If you want help selling the lead let me know. I have a few larger buyers that handle the stuff we can't. You can also advertise it on here. You could make some money as a finders fee or you do it for free and build a good relationship with someone who may JV or mentor you on a deal more size appropriate.

Good luck!

As others have stated a 1031 makes sense when it makes sense for you financially. I personally wouldn't spend a lot of time on legal tax avoidance on a deal that nets 30-50k total profit. However, when we start talking in the 100's of thousands, that's when I start advocating it (assuming you can find a new property in the identification window). If you are already fairly active as an investor and have regular deal flow I would say do it anytime you can. Likewise if you are an a more hands off investor without regular deal flow, then it boils down to the gain, the taxes you save and having the capacity/network to have someone find you a step up property (or package). 

 I was wondering about these scenarios, subject to or seller finance type properties where a deed is held by one party as part of an off market agreement. 

Thanks for sharing Chris!