All Forum Posts by: Elijah Skinner

Quote from @Tim Ryan:

Boy this is tough to answer. Since you are saying house hack, you'll be living there. I don't ever think about this as my motto is "Live where ever you want, invest only where it makes sense".  Either way, the key is to go to a "Future Growth Market".  Houston had its run. Why would you go there, it's too late. Same for Nashville.  I know most people wait to hear everyone else talking about an area before they will believe in it. I don't invest that way. Go where people are barely talking about but you can see the area growing. So here's my recommendation - Milwaukee area!

 Exactly!  I was looking at Nashville and some suburbs outside of Nashville about 2 years ago,  but it seems like the time for those spots passed by.

Ill check out Milwaukee, never heard that suggested before. appreciate the info 

Quote from @Nicholas L.:

@Elijah Skinner

totally fair and thoughtful response.  a lot of those 300K 3 units are going to need significant rehabs.  that's the issue with older properties in the midwest.

and the weather is not as good =) but you know that.  so... pros and cons to both locations.  could you look in slightly less expensive areas in LA county?  i'd never tell a random person on the Internet "yes you should definitely move to Ohio!"

Haha!  Yeah, theres not a lot to do out there I reckon, but truth be told I'm a pretty introverted guy.  Stay inside most of the time and read / study.  Like to hangout with my wife and 1 close bud mostly, lol.

Hey if you got some good recommendations for LA county I'm all ears!

Appreciate the replies 

Quote from @Nicholas L.:

@Elijah Skinner

LA is "boring for real estate"...?  What in the world does that mean?  =)

And let me ask you this - how many properties have you looked at?  How many offers have you made?

To find something good you'll have to put in more work than others.  Maybe look aggressively for 6 months.  And then go from there.

 Well, the way I sort of analyze these things is my job is entirely doable remote.  I am in the dead center of Los Angeles.  The majority of the homes are 800k+ for a 2 bed 1 bath.  I make decent money but not enough to make 800k completely non consequential.  I am looking at some of these homes in areas like Virginia, Ohio.  And seeing 3 unit Multi families for 300k.  

In my situation I also have built in tenants that would move with me and would become rent payers off the bat as well.

So with these high price los angeles homes.  The risk seems immense with very little payoff.  Lets say i put in a 3.5% offer a t 1.3 million dollar triplex.  I am going to be paying 10k a month in mortgage , perhaps renting out the other units for 2.5k a pop.  But then still paying 5k and also covering repairs.

It just seems incredibly risky to me.  Especially as a new investor.

Quote from @Jake Andronico:

@Elijah Skinner

*Cue every agent talking about their area* haha

In all seriousness, I've house hacked twice in Reno NV long before I became an agent here. 

While I'm obviously bias to the area, I wouldn't change a thing. So much happening in Reno and it's flying under the radar. 

Find out where you like to be and spend most of your time and make a house hack work in that area. 

 I appreciate the information!  I am currently in Los Angeles on a high salary.  But its kind of boring here for real estate atleast in my opinion and a new adventure sounds nice haha.

I was currently looking at Columbus Ohio, Lynchburg VA, and Staunton VA.

Never even thought about Reno, ill have to give it a look.

I'm curious to what everyone thinks.  Is there one area that is typically viewed as the best option for house hacking?  Are there a couple markets?

I know the consensus is "The best market is the one you're already in"  but I'm just curious.

If you could start over anywhere with a decent chunk of money and a solid house hacking strategy, where would you choose?

Patricia,

Thanks for the reply.  Advice is very much appreciated!

Originally posted by @Patricia Steiner:

Most lenders are now licensed in multiple states.  I recommend asking your out-of-state realtor for introductions; he/she will know the ones who get deals done for investors seamlessly. As a buyer, you pay no commissions so why not add bench strength and get an investor-focused realtor/broker to not only help you acquire the right property in the right market at the right valuation - but provide resources like inspectors, trades, lenders, insurance, and more.

Real Estate Investing is a complex business.  Any time you find that you're the smartest guy in the room, bolt.  Surround yourself with experts and you'll get to winning a whole lot faster.

Best...

Hello everybody.

I am just beginning my real estate journey, had a question about buying out of state.

When looking for a lender (I currently live in California and am looking to buy in Tennessee) would I contact a lender in Tennessee, or can I still get the loan from a california based lender?

Let me know if anyone has experience or advice in this.

Thank you

-Elijah

David, 

Thanks for the great advice on this.  Ill look more into umbrella policies.  Definitely more research I will have to do on this topic.  I also assumed taxes would be much simpler if i separated my business and personal income via an LLC.

Originally posted by@David Sigler:

Hey Elijah,

Holding property in an LLC does provide liability protection but the cost might not be worth it starting out. I also live in CA and have rentals in TX and AZ but I just have an umbrella policy that covers me. The cost is about $150/yr for 1 million of coverage.

I'm sure you will get some great advice her on BP but you can also reach out to a real estate attorney and get their advice.

David

Been listening to biggerpockets for awhile, and am finally ready to make the jump into real estate.

I currently live in California, where buying properties to cashflow is just not practical, and am looking to invest out of state most likely in the Texas or Florida areas.

This year, my plan is to purchase a multifamily home in one of these locations.  I am currently more interested in a great cashflow as opposed to appreciation.

I am not sure if i should open up an LLC or not. It is to my understanding that California is pretty harsh on LLC's which might not make it financially worth it for me to use one.

let me know what your thoughts are.

Thank you everybody.

-Eli

Hello everyone!

Been listening to biggerpockets for awhile, and am finally ready to make the jump into real estate.

I currently live in California, where buying properties to cashflow is just not practical, and am looking to invest out of state most likely in the Texas or Florida areas.

This year, my plan is to purchase a multifamily home in one of these locations.  I am currently more interested in a great cashflow as opposed to appreciation.

I am not sure if i should open up an LLC or not. It is to my understanding that California is pretty harsh on LLC's which might not make it financially worth it for me to use one.

let me know what your thoughts are.

Thank you everybody.

-Eli