All Forum Posts by: Edward C.

Guys, great points And I appreciate it. @Cassi Justiz you are describing exactly what I am hearing from a couple of my local investor friends in OKC. Deals are there, but not complete BRRRRs; some deals they are leaving around $5-$10K in the deal, which I am ok with. It’s the property type that I am a little picky about. Ideally I would like to BRR a B- house in B neighborhood in good school district. So far I like the south side of OKC. 

And also, @Cassi Justiz thanks for the advice on summer inventory vs. fall inventory. If you don't mind me asking, is there another rental "season" in January in OKC? Someone in my local REIA mentioned that January is another rental "season" in OKC. In seattle, the noticeable season is May-July. Obviously people move year round, but it's not common in winter. Would you say in OKC January is another time renters are looking? I just want to do the first deal as "right" as I can so it doesn't deter me from a 2nd deal.. Don't necessarily want to be stuck holding my first property empty for months when I didn't "time it" right. I can actually see it from BP forum: **Look Eddie, your problem for buying in August and finished with your BRRR in November is all about timing! Who moves in November?!?!** I don't want to be that guy! Thanks guys.

Eddie

Hi all, after reading lots of books and listening to podcasts everyday and going to meet ups etc etc I think I'm onto the next level. Meeting with lenders and agents etc. I currently live in Seattle, expensive market. My plan is OOS investing through BRRRR method on SFR. Here is my question. It's mid June right now. By the time I get my ducks in a row and start the BRRRR train, probably the earliest I can get the property on the rental market is likely after the "rental" peak season. What would you guys say I should do?

I’ll try to anticipate a few questions / comments. My target market is OKC or Indy. Targeting B class neighborhoods. Currently not a big fan of section 8 as a beginner. I know people say don’t fall into the “analysis paralysis” trap, but others say the first deal is very important to do it “right”, and don’t be in a hurry to just get a deal - any deal - under the belt. Don’t be desperate. I know myself; I’m not the person that is just a pretend investor. I am DEFINITELY going to jump in. No if, ands or buts. It’s just a matter of when. Some say timing is everything. 

So, is doing it “right” waiting a little for the next “rental peak” - some say January? That would place my purchase around October, when supposedly good deals can be found? Or Buy next spring? Or buy now and figure it out? I’m not hurting financially, so I’m not desperate. I have a good paying and stable job. I want financial freedom in 10 years or so.  There’s TONS of stuff floating though my head right now...  Any advice is appreciated!

 Huntsville, Birmingham, Orlando, Cincinnati, Indy. How about yourself? 

@Andrew Angerer I live in Seattle area and my long term plan is OOS BRRRR. Right now I'm building capital to have enough for 6 month reserve (both personal as well as for rentals). Once the reserve number hits I'm good to move forward

@Ryan Kuja that’s a good suggestion re: Olympia. I will def look it up. As well as west michigan. OOS markets I currently find interesting are OKC, Alabama, Huntsville, FLA like Jacksonville / Orlando (a bit pricier)... etc. Hopefully that is of some help to someone... If anyone else has other markets in mind please share if able. 

Currently around here in Seattle/Bellevue, I feel like Buffett’s saying goes: “when everyone is greedy, you should be afraid, and when everyone is afraid, you should be greedy” or something like that. Around here I def feel like everyone and their mom is trying to be in RE right now and buying everything they can just to “get in the game”, even though the numbers don’t make much sense. Although i’m a novice but I’m fairly confident that this area is at or near the top of the housing market cycle.

Thanks for your comment Ryan. 

@Ken Maddis that sounds like what I would be interested in doing, once I find the right market. If you don’t mind, perhaps I can PM you for further discussion? I have a few markets I’m currently looking at. Still quite a few months away, but just learning. 

I’ve been looking at Denver and surrounding as well. It’s a great market and in the distant future it will be a market I would like to look for opportunities in for population growth, job growth, infrastructure, positioning for climate change (very long term) etc.. Thanks for your comment Ken. 

@Mike D'Arrigo that’s what I figure with local investing for me. Yes I will have to get over my fear of OOS investing; trying to educate myself ways / system to mitigate that. Thanks for your comment. 

@Account Closed Looks like my developing strategy is very similar to yours! Very good point on C properties here is C property - and it requires higher entry price point at that around here. A few of my colleagues are in 3 cap, 4 cap properties that have break even flow... and they call it a win!! And that’s not even accounting for capex! Appreciation is the game they’re going for, and that just doesn’t sound right to me. Their investment philosophy is different than mine I guess - they’re “parking” their money, whereas I am trying to build wealth at a faster pace hopefully to partially retire in X years. 

Another good point Elliot on conservative pro-forma: I’ve been talking with local RE investor friendly brokers, and a few brought some packages my way. When I asked them why allocations for property management / monthly maintenance fees aren’t in the pro-forma, I haven’t heard back from them since. 

Thanks for the comment Elliott!

@Anthony Jones I suppose turn key is another way to just get my feet wet. I have been checking out Memphis Invest for that. Due diligence is the name of the game for me. Thanks for the comment Anthony. 

@Cassi Justiz, Appreciate that advice. That's probably what I was leaning towards as well. Interestingly I found a local group of investors that have been active in OKC of late. The general consensus is just like you said - the inventory for distressed properties to BRRRR is dwindling down compared to a year ago. One guy is concentrating on $50-$70K all cash BRRRR with section 8 angle... I'm not quite sure that is for me to start out...

With that, if I do buy B properties, would there be enough meat on the bone for value-add? Is there such a thing as "partial" BRRRR? As in, $50K in for $150-$200K property, ~$10K Reno, refi but not all $60K out? I can live with getting half out. Or is that what you meant when you suggested to use the $70K to leverage into 2 houses? Thanks so much Cassi.