All Forum Posts by: Scott Dixon

Hey @Jared T. 

For my first property I purchased a duplex but this was not in a college town. I rented the other side and also rented out the other room in my unit to a friend. I took the path of paying myself rent as more of a way to save for the next property. Similar to my tenants I paid half of the units rent directly into my REI bank account on the first of the month which helped to build my reserves and also the next down payment.

Best of Luck and welcome to BP!

Scott Dixon

Hey @Tony Dragoo  

If you can qualify for a conventional loan on your primary residence with the standard 5% down you might want to save the 3% for your future downpayment on a rental property.  Any specific reason for the 8% down for you primary residence?

Best of Luck,

Scott Dixon  

Hey @Jason White 

Are you looking to be an active or passive investor?  Do you have any prior experience in real estate investing?  Are you looking to stay to your local market or willing to venture out and invest at a distance?

Best of Luck

Scott Dixon

Hey @Account Closed indicated finding a property manager in the area could be a great point of contact for off market deals.  On your drive you will most likely see a property manager or 2 who really stand out in your target area.

Starting off with a 2, 3, or 4-unit property which you live in one unit and rent the rest is the way I started and I strongly recommend it to new investors who want to get started.

Best of Luck!

Scott Dixon

Hey @Jason Cobb 

Good work on acquiring the multi-family.  One of the things that would concern me is the statement 

"Each have 2 and 3 bedroom mix, near universities, C+ (ish) type properties competing against large scale, A+ type properties, reduced enrollment, possible saturation, etc."

How are you going to balance out all of the negatives which you listed for the rental market?  Are you just ensuring you offer a better product at a lower price?  Is there any room for you to force appreciation in the current market conditions if you are having to lower rent to stay competitive and keep your vacancies down?

Champaign/Urbana is seeing similar trend in more and more units coming online in 2015 and 2016 but that is in the A-class student rentals so I try to stay out of that ultra-competitive class.  

Best of Luck

Scott Dixon

Hey @Manny Rodriguez 

Welcome to BP and welcome to REI. You might have read through it already but a great place to start is the Ultimate Beginners Guide .  Also This is a perfect time of year to setup your 2015 goals.  There have been numerous blog articles on setting goals over the years and performing a simple search on "setting goals" will give you a ton of info to get you started.  

Best of Luck,

Scott Dixon

Hey @Michelle Wolfel 

If you are searching for BP members in your area, try out the "Find Members" option under the Network Tab.  Hope this helps and Best of Luck.  

Hey @Edward C. 

Are you wanting to get a conventional loan (ex:  30-year fixed rate on a single family residence) or a commercial loan (ex:  20-year variable rate with a 5 year balloon on a apartment building)?  

Scott Dixon

Hey @Jason Cobb 

No problem, we had about 8 people and as always it was great to just hang out and talk a little shop with like minded people.  We should be having another one in Feb and will be sure to let you know.  Enjoy the holidays and hopefully see you next year.

Scott Dixon

Hey @Julian L. 

I would say go with what you know. If you are already familiar with a market and know which areas are good and bad along with a preexisting relationship with a PM which you trust, I think your choice is a no brainer. Be careful not to pull the trigger too soon by just checking the MLS and buying the best property which is currently listed. Start building relationships with agents in the area and let them know what you are looking for in terms of an investment. You could also check FSBO, craigslist, driving for dollars, direct marketing, and/or getting to know wholesalers in your area to make the most of your money and buying like an investor not just a retail buyer. Which college town are you familiar with?

Best of Luck

Scott Dixon