All Forum Posts by: Ellis Hammond

In a market like southern California where the cap rates are for the most part under 5% it has been very difficult for me to find any type of MF property that meets the 1% rule (rents being at least 1% of purchase price).

Should I just keep looking until I find the needle in the haystack or are there other criteria that is more important when trying to invest in a cash flowing buy and hold investment property? 

In a market like southern California where the cap rates are for the most part under 5% it has been very difficult for me to find any type of MF property that meets the 1% rule (rents being at least 1% of purchase price).

Should I just keep looking until I find the needle in the haystack or are there other criteria that is more important when trying to invest in a cash flowing buy and hold investment property? 

@Lane Kawaoka Thanks for your response. I probably don't meet the savings criteria you talk about but I do have the up front cash. I understand that the larger you go, the more complex deals may get, but don't I also lower my risk the more doors I have? (so 2-10 doors instead of SFR).

I hope to approach real estate the way I have approached most other things in life and had success and that is with the right team.

I also don't plan to self manage my own properties, I will outsource that to professionals. 

Would love to hear more of your thoughts and feel free to reach out to me individually. 

@Troy Gandee thanks for the response! I have looked at the CHS market bc I am most familiar with that market and still have family there I get back to see but like you said being so far away does make it hard to know what you are really looking at.

@Jason Monroe how can I build relationships with banks who are not in my area? Most podcasts/books I have read have recommended building relationships with smaller portfolio banks as well. 

Would it build credibility with a bank if i could go in as a partner with someone the first time on a deal before going in on my own?

Thats great advice about teaming up with syndicators. I do have a large network of supporters who I believe would want to invest I just need the experience and some deals under my belt before I can approach. 

@Brian Ploszay thanks so much for your response. Yea 200K really doesn't get you very far here on the west coast and its the main reason I have been looking in other markets (san antonio and various cities in South Carolina). I just wasn't sure if there was a better strategy that an experienced investor would recommend if he/she could go back if they started out with an amount of $200k.

Can I ask how you first got started out?  

My goal is to create financial freedom through passive real estate income and I have listened and read so many podcasts and books on strategies but most have been from investors who started with little to no money (much kudos to all of you- seriously i have been inspired.) Now I know this is almost a silly question "how to start out with money" but my real question is what strategy would you use if you started with around $200k? 

Would you start in multiple smaller complexes or go for larger complexes? Maybe try and save up or partner with someone else and go ahead and invest in a 50+ unit complex? 

Would love to hear thoughts!

Thanks!