All Forum Posts by: Chris D.

@ Grace. How nice.. a local investor! The skills I would like to learn are primarily 1) what kinds of prices are reasonable for rehab and repairs…this would help me as I am evaluating properies for a rental portfolio and serve as a valuable guide as I deal with a property manager 2) I would like to learn a little about tenant screening 3) I would like to learn how to evaluate deals to know what is a good deal and what areas are attractive for investment. I would love to learn how to decipher which areas are "in transition" with the hope of gaining appreciation. I so often hear at REIA's and other investment meetings how PM's don't do good tenant screening and how the properties are left a mess. If I use PM's, I need to learn to manage the manager!

@ Christopher. Thanks. A 700K property rents for about 3K in my current zip code so I was a bit off. .0024%. Rental rates are beginning to trend downward according to my local MLS. Your area sounds much more in line with the numbers I have been taught to look at, as an investor but those numbers don't exist in my market.

@ Barbara. Thanks. I have gone to more than a few REIA's. I seem to meet a lot of inexperienced people like myself there. I think I'll need the confidence that some kind of direct experience may impart. This may help me to put a plan into action.

Hi All:

I live in the Washington, DC metro area. I need help getting off the dime and plunging into the buy and hold arena. I have cash to pay for the rental properties until I am able to consider leveraging it. I have an associate broker license that I haven't used in over 17 years. I'm active with our local MLS so I have access to the data.

I'm an older gal…old enough that I think I'd prefer using a professional property manager to manage my rentals. One of the things that has held me back has been some of the overwhelmingly negative feedback I receive from investors re: the lack of control that you have with property managers. The other is that there seems to be nothing close here to that old 1% rule that all of us newbie investors hear about. In DC it is more like the .30% rule…prices are near the highs of 2007. I would like to get the benefits of cash flow and appreciation and am wondering if I should consider out of town investing? There are no estate taxes in VA and it is landlord friendly so it seems best to buy in VA.

I am fortunate that for now, I don't have to work. I am not a huge networker and need help getting out there and want to be exposed to other knowledgable investors. I want to work and don't care how much I get paid, provided I am doing something that will enable me to learn facets of real estate investment that will further my knowledge. I would consider moving for the right opportunity for as long as a year. If anyone knows of an opportunity give me a shout via email.  I'd be looking for some schedule flexibility in exchange for working for peanuts. I'll be honest with you about my strengths and weaknesses. No gurus, please! 

Does anyone out there have suggestions on what kind of work might best benefit me from an educational perspective. What kind of skills might I need and where would I learn them? I would love to feel comfortable enough to purchase a property or two in Virginia before the end of the year.  My thoughts are that a property management position might be valuable. What do you all think?

Thanks in advance! 

@ Lacey…thanks for the city-data information. Have you checked into Getsmartcharts? It is an RBI intel product that provides statistical information crunched through MRIS. It is a paid subscription (like $25 per month)  but if you work with lots of investors would be worth checking out. They'll let you demo it for a few weeks, I think. 

@Philip and David…thanks for response. 

Hi All:

I am interested in buy and hold but live in an expensive area (Washington, DC metro). I will start with SFR and (hopefully) with the excellent educational resources offered by BP…move on to small multi family properties. The one percent rule cannot be found in my local area! We tend to have reliable appreciation here in DC but our current prices are approaching the pre 2008 bubble range. Purchasing in my local market concerns me as we keep hearing interest rates will tick up soon. The rental ratio relative to sales price is often less than .50% here (i.e. 500K sales price…$2,500 monthly rental price) . According to local MLS, our vacancy rates have risen slightly in the past year. Local realtors keep touting our historic appreciation but I am not convinced!

I have been investigating buying out of town. What demographic information and what sources for demographic info. should out of town investors use when considering what areas you would like to invest in? Also, what criteria do you use?

I had been considering investing in Richmond, VA. I recently read an article where 43% of purchasers in 2013 were absentee owners and almost 50% where cash buyers. A follow up indicates that Richmond vacancy rates are higher than my market here. I am wondering what is happening to vacancy rates in cities like Las Vegas where the hedge funds crushed it with property purchases?

Should I be considering percentage of absentee owners, days on market, vacancy rates, employment information, age demographics etc? What sources are out there to find this information? I do have a real estate license and can log into Realtors Property Resource. They have a commercial site but I haven't investigated the demographic info. How does one go about figuring out which areas/neighborhoods are the up and coming "in transition" Has anyone used the CCIM info. to look at commercial/employment demographic trends in neighborhoods and am I completely overthinking this?  I'd like to strike a good balance between cash flow and potential appreciation. 

Last thought…listen to the BP podcasts…they are full of useful info! Thanks Bigger Pockets! I love you!

Thanks in advance for any help/feedback! I have been sitting on the fence for far too long!

Hi Brendan:

I live in Falls Church and have the same idea as you. The numbers here in the Northern Virginia market just don't seem to add up when it comes to buy and hold. 

I met with a local CCIM instructor who suggested Richmond as a possibility for investing. I came across an article written in the end of 2013 that concerned me. According to the article published Oct. 26,2013 by Mark Andrew Boyer (Richmond Confidential.org) the percentage of cash buyers in Richmond from 2009 - 2012 was 49% and the percentage of absentee owner/buyers was 43%. The article did not give specifics with regard to zip codes and if I were to consider a purchase, I would want to verify.

If this is true, it seems to me that with almost 50% cash buyers there may ultimately be many landords competing for tenants which ultimately could drive inventory up and rental prices down. If I decide to invest there, I feel it would be imperative for me to determine the amount of rental inventory and pricing trends as compared to say, a year ago. Also, I would like to see trends in terms of days on market in the local MLS.

I would love to hear any feedback from investors/landlords who currently own rental property in Richmond. 

Best of luck! Let me know of any helpful information you find. 

If you're interested in this topic, listen to BP Podcast #109 titled You Will Get Sued. Austin, TX attorney Scott Smith explains why umbrella policies will not offer complete protection. He makes a convincing argument to delve into this subject in the beginning of an investment career. We never know where we'll end up…how many properties or how much net work. Planninf from the beginning appears to be a wise move. It is Great listen!

As a follow up to previous post, only members of the National Association of Realtors are permitted to access the RPR site. 

I have a real estate license and just took an introductory class in RPR today. I am not proficient in using the program. There is something you all need to know. Brokers have the option of "opting out" i.e. prohibiting their listings to show as available while they are on the market. They may also opt out of allowing them appear on the RPR website once they settle, although RPR monitors public records and will list them as a public record sale soon after settlement. Thus your information could be incaccurate. The largest independently owned real estate company in the US is located in my market (Washington, DC metro). They do not permit their listings to be shown on the RPR site so imagine how inaccurate a CMA could be! As a realtor, I subscribed to Get Smart Charts Pro. I have been advised by the Smart Charts trainer that all of the informaton in a local MLS is included in the Smart Charts product. I'll post more as I learn it.