All Forum Posts by: Bryan Beal

@Kenny Dahill valid points. Ultimately I'm trying to build a portfolio in the Pittsburgh area with no specific area or class in mind. I have a SFR there now but want to buy a MF and am shopping around in different areas. I know this doesn't help much but I'm looking for an overall partner that can be my local eyes and ears (I live in CA and have this in a number of other long distance markets) and can help me expand in that market. It may seem vague but I'm looking for an all-in type solution.

@William Orrock I live in CA as well and I purchased 11 investment properties my first year... None of which were in CA - for a myriad of reasons. You’re right, CA is not a landlord friendly state but besides that, I see more long term upside in small to mid-size markets. That said, it depends on what you’re looking for - more cash flow, more long term appreciation, etc. I’ve found a nice mix of both good cash flow and positive equity in the markets I’ve been investing in. I’m happy to lend any insight/advice I can, but the best advice I can give is don’t overthink it - if the numbers make sense and it fits your investment goals, go get it!

Looking for a good PM in the Pittsburgh area. Any referrals would be greatly appreciated!

@Dave Foster thank you so much for the detailed response - this is EXACTLY what I was looking for. Have to say, this whole BP Platform is incredible - thanks to everyone for your input and advice!

@Michael Plaks thanks for the reply. I understand someone can't physically take the proceeds - I was implying that the money would simply go towards new properties that would be held in a LLC. Sounds like one would have to buy personally and put into LLC as opposed to putting into LLC and buying. If you're buying in a market that has transfer taxes (i.e. Pittsburgh), that can be expensive. Just wondering if there's a way to flip this script to avoid additional charges.

Say someone wants to sell off some SFR properties they currently own (individually) and take the proceeds as a 1031 Exchange and invest into a LLC that is going to invest in single family real estate. Under what circumstances would someone be able to do this? Are there any? Any help is greatly appreciated!

@Sydne Gutierrez first and foremost, make sure you have a solid understanding of the markets you want to invest in and why you want to invest in them. Might sound obvious but this is often overlooked. Surround yourself with a team you can trust - an agent, a lender and a property manager. I’m very lucky to have all three of these in multiple markets but it took a while, and some trial and error, to develop those relationships (well worth it, by the way). Find an agent that has your back (i.e. puts your own investment interests above their ability to collect a commission check - telling you when to walk away when it isn’t a sound investment), a lender that will work with you to find the best loan package for you on each, individual investment, and a PM that not only manages the properties, but manages the tenants so they won’t try to take advantage of you (can’t tell you enough how important that last part is). If you have these in place it will certainly help make you more successful.

I’m happy to share any contacts I have in the markets I work in because I trust them and I know they’ll treat anyone and everyone they work with the same way they treat me.

Hope this helps!

@Alex Ko I also live in LA and I’ve had the ability to purchase 11 rental properties in my first year... Not a single one is in the state of CA. I’m buying in small to mid-size markets and my returns/metrics are strong. I see more potential in developing markets given how the “established” markets are pricing a lot of people out. But I know there are also a lot of people that have invested in CA and have been very successful doing so. There’s no right or wrong answer - you need to determine what your goals are and what market(s) give you the best chance to reach those goals.

@Omar Johnson it’s not a bad idea but there are many factors to consider - a lot depends on the amount of equity you have to pull and go buy an investment. Make sure your cash flow and upside with the investment makes it worth your time, money and effort to re-fi and manage the investment. Might sound obvious but I’ve heard some horror stories...

Long story short, as long as the metrics work, this will be a good venture for you and will create more opportunities for growth. Good luck!

We started a real estate investing company last year and we were able to purchase and lease out 12 SFR units. I've run calculations to date on all of the properties we own and all of them look strong... With the exception of the rent/cost analysis. Our average came out to be 0.83%. These homes are in great shape, in good neighborhoods with great upside potential. We're cash flowing well on all properties but from everything I've read, the "rule of thumb" is to be above 1.5% in rent/cost. Again, with positive cash flows in emerging markets, that 1.5% seems high based on my experience. My question is - am I missing something? Is that number more suited for "high risk" investments vs buying in established neighborhoods? Any insight would be greatly appreciated!