All Forum Posts by: Craig Anderson

Putting 20% down is not a bad thing at all. If you have X-amount only and the 20% down eats up your savings, then it will just be a slower process to build your portfolio. A lot of people have taken this approach. BRRRR helps you acquire more properties sooner while recycling your initial investment.

If possible, I would recommend house hacking to get started, especially the first year. This way you are only putting down 2-5%, and you have money in reserves.

In my opinion, on your first property (especially a house hack), you should be the PM.  However, that doesn't mean that you do the repairs and maintenance. It just means that you take care of problems/issues by finding the right person for the job.  This helps you gain experience and knowledge in this realm. 

Also, this helps you to network and make contacts with potential team members as you grow. You will be to find a handyman, contractor, talk with other PMs, etc.  My brother gave me some good advice the other day. He told me to find a great handyman that you pay X-amount per month, he fields all the calls from your tenants, give him authority to fix anything up to $250 (or whatever you feel comfortable), anything over that he needs permission, and pay him X-amount an hour per job. This gives you peace of mind along with creating a great partnership for the present and future. This also saves you some money instead of paying 10% to a management company, you pay way less, and you are building relationships. 

At first glance, I would be concerned about the quality of tenants and the negative population growth.  Remember, location is an important factor when being a landlord.  If your properties are in high crime areas or low-income areas, then you will most likely have more problems big and small compared to properties in different neighborhoods.  Both can be profitable, but make sure that you know what you will be dealing with in terms of tenants, longevity and potential issues.

1) Read/learn, read/learn, and read/learn.  

2) Create a plan based what you like to do (Flip, Rehab, Buy/Hold, Wholesale, etc)

3) Save money/Invest money where you can (stocks or something with a 15% or more ROI)

4) Get a job with a lender, realtor (even if it's just as an office employee), find a mentor, construction, property management or something else in the real estate world

5) Take action even if it's just a small step.

Good luck on your journey and continue to ask questions.

I like the idea of investing in new builds. However, I would only buy in Phase One. This will ensure appreciation, and within a year after you have been living there, then the other phases are being finished and the other amenities are established. This creates a desirable neighborhood for incoming renters or the potential to sell for a nice profit.

I would look outside of Boston that has a reasonable commute time. Then, if possible, get a duplex or 4-plex, and house hack.  At the very least, you can get a SF and rent room by room if you don't mind roommates.  This same format of renting a room or two can work in Boston if you don't want to commute. You might not be cash flowing, but your expenses are way down, and other people are helping to pay your mortgage.

I'm going to be getting a duplex or tri-plex soon. I plan on renting out one side, living in the other and Air BNB the extra room in my living area. It will be selective Air BNB as I don't want someone there all the time.

Hi Aniello, congrats on deciding to become an investor.  If you haven't done so already, then I would read some books on Real Estate Investing.  The first book that helps you get focused on an area that you think you would excel at is "How To Invest in Real Estate: The Ultimate Beginner's Guide to Investing" By Brandon Turner.  I recommend this one as a first read, then branch out from their depending on your focus and strategy.  You've got great experience and bring a lot to the table, but it's best to learn the investing side so that you are aware of all aspects of investing. 

Good luck in your journey.

If you haven't already read David Greene's book on investing out of state, I would start there.  As a RE agent, you need to build a rapport with other agents.  

I wouldn't put my hopes on student loan forgiveness, but you have a nice savings to put toward an investment property, and the loan payback won't hurt your bottom line.

It all depends on your comfort level and how much you value your time.