All Forum Posts by: Account Closed

Hi Everyone! 

So, I've read and written a lot about real estate investing and have thoroughly enjoyed learning every bit. I also interned with a realtor while in college and shadowed rental property investors. I've used many different sources to get data, educational tools, etc. to learn about investing but I still have not made my first investment/home purchase. 

I know there's an increasing demand for rental properties but there's also an increase in the number of Millennials investing in real estate. My question is, if you are part of this generation, how did you start and how has your investing experience been for you? 

From that, branches out my other question, did you invest while still having student loans? I know many people do this but I'm curious to hear about how people specifically went about doing this. I personally have loans. 

I'd appreciate any input you all have and I'm really interested in finding out how someone who I could easily relate to (in terms of financial situation and having recently graduated) started their investing journey.

Thanks so much.

Hi Jasmine,

I agree that you should stick to buy and holds as a beginner for a couple of reasons. 1) You'll create consistent additional income (not just one time) 2) you'll be getting equity (someone is paying your mortgage) 3) you'll obtain something tangible (a property) 4) if you choose to sell, you can benefit from the property's appreciation; if not, you can benefit from inflation by raising the rent. 

Are you planning to live in one of the units in the MFH?

Hi J P.,

I definitely understand the frustration. There's nothing wrong with waiting a bit longer until you've saved up some more. Do you mean the monthly rent isn't much different than the mortgage payment for a cheaper property?

If you feel like you're not finding the right options, you can request city data reports from Mashvisor of Orlando and/or Tampa. Maybe you will find an option from there - with all the numbers being presented at once. 

Until you decide to buy a property, maybe you can consider Airbnb as an option to get some extra income to save up. Don't feel discouraged, people have invested in real estate starting out with less than 10K and now they're very wealthy. 

PM me if you want to chat more about the different approaches you could take to investing.

Good luck to you :-) 

Hi Zlatan (lol),

Firstly, it's great that you've been listening to the podcasts and reading the blogs because that would be the first step to investing (education). Secondly, I would say the second option is better as a beginner. I think that will better allow you to observe your cash flow and not get overwhelmed with so many expenses from the first investment (especially from commercial buildings). 

Thirdly, the most important thing is cash flow. Creating a positive cash flow is your main objective. Since you already know the market, this will make your search easier. Can you maintain a positive cash flow with multiple properties?  

That is my advice,  I hope it'll help.

Hi Tasha, 

Do you mean good deals on investment properties? 

Other ways are talking to real estate agents who have experience with investing. Generally, an agent knows the ins and outs of an area and could find deals. 

Finally, as the others have mentioned, a lot of good deals are off the market. You could check out RentHackr. That platform allows people to exchange information about apartments before being listed, that's a way to find good deals for apartments. 

Hi Taylor,

I want to applaud you for considering purchasing an investment property outside of your area. I feel like lots of investors lose opportunities because they're unwilling to go outside their neighborhood.

In terms of hiring a property management company, I think there's less risk since it's not your first investment property. With the income from both the Boulder property and the new property, the management fees won't feel as overwhelming as if it was your first property. If the numbers are still able to work even with the management fees, I think it could be worth it.

I definitely understand the concern about putting your property in someone else’s hand. The reality is they probably won’t put as much TLC into the property as you would, but I don’t think it’s a deal-breaker for expanding your portfolio. Get suggestions about which companies to hire from local agents or investors if you can.  Here are some of the pros and cons of hiring a management company.

Hope this helps, good luck! 

Hi @Eric Kang, 

I think investing outside of your local area will prove to be lucrative for you, so I think it's good you want to explore beyond your neighborhood. Are you considering traditional buy-and-holds only or are you considering Airbnb as well?

Florida has several cities with cash purchase cash rates between 8 and 11% - Ocala, Palm Bay, Orlando... 

It sounds liked you've been very successful in the market you've invested in and now you're spreading your investment wings, smart. I think a lot of investors miss out on opportunities when they don't consider investing beyond their 20 mile radius. 

If you're after the numbers and plan on making this a long-distance investment, then you should definitely have good estimates for the area. Check out Mashvisor and type the Florida city you're interested and then look at the properties; it pro gives you a summary of the predictive analytics for each property. I think that will give you a better idea of what the Florida market is like. 

Have you considered any other states? Texas? 

I think your comparison thus far are agreeable. Long term investments are less work and Airbnb hosting/investing does involve more work. I've done a lot of reading about Airbnb and from what I've read, a lot of people report to have made more money through Airbnb compared to traditional leasing. Here are some other comparisons: 

Cons of Airbnb compared to traditional: 

- Possibility of having legal issues

- More competition with those who rent just a room out and thus, for a lower price 

- Extra costs: sales tax, occupancy tax, supplies for rental, 3% host fee that is deducted from you booking

Pros of Airbnb compared to traditional: 

- Social experience 

- Learn more about the hospitality business 

- Have the ability to play around with your prices