All Forum Posts by: Eric Gerakos

i'd pick a market that's easy to get to, where you can be in person - perhaps (gulp) even in California. "but California is too expensive," you might say. you know what else is expensive? buying something random out of state, and getting absolutely crushed by capex and turnovers. see these threads and see what you think.

https://www.biggerpockets.com/forums/12/topics/1215726-break...

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

https://www.biggerpockets.com/forums/48/topics/1160450-run-i...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

This....

0 Votes

Quote from @Corby Goade:

I agree with OP 200%. It seems like it's less risky because it's cheap.

But why is it so cheap?

Supply and demand- if there were demand-, it wouldn't be so cheap. If there weren't such a big supply, it wouldn't be so cheap.

Same on the rental side- demand- will be low, so you have to take on less than desirable tenants, which are costly and time consuming.

A couple years later, repairs, vacancy and turnover costs and you've actually lost money every month and you've decided to sell and buy in a more desirable area, but the property hasn't appreaciated, you have to fix it up to sell and incur transactional costs and you lose even more money.

Contrary to popular belief, this is actually an advanced strategy for people with lots of experience and resources, it's a really tough place to start. Most people who start here cash out, lose money and are burnt on rentals and give up. Thethink LTR doesn't work, but it's really just the strategy and location.

This should be required reading for new investors, drooling over the great cashflow they will make buying crappy houses in crappy neighborhoods that attract crappy tenants. They don't associate cheap with undesirable.

2 Votes

I wouldn’t do any of those things. As I’m nearing retirement, I just invested a similar amount in first trust deeds secured by real estate at 9.75%. That’s $ 6,093.75 a month in passive cashflow. I don’t sell anything here on BP. I’m just an investor. Best of luck to you.

9 Votes

“All this to hopefully cashflow a few hundred $$ a month, doesn’t seem worth it.” If you think that is the expected outcome of owning rental property, you should either learn where and how to buy, or invest elsewhere. Best of luck to you.

4 Votes

Houston, Texas

We have received your message, Earthling.

0 Votes

Winnipeg, Manitoba

You really don’t need a financial advisor to buy real estate.

0 Votes

Chicago, Illinois

Just increased rents as I do every year. More demand than supply. I buy where people want to live, not where property is cheap due to low demand.

1 Vote

Casper, Wyoming

I have invested in California for 23 yrs with 0 evictions. Like any other state you need to know where and how to invest.....

5 Votes

A 4plex isn’t a commercial property. Typically 5 units or more are considered commercial.

1 Vote

Columbus, Ohio

All Forum Posts by: Eric Gerakos

Eric Gerakos has started 0 posts and replied 623 times.

Post: Picking a local market in SoCal

Post: Looking to buy my first investment property

Post: If you are buying lower cost SFH's what is your exit?

Post: Getting Started. How & What would you do with $750k? Suggestions?

Post: why should we still invest in real estate?

Post: Testing the water

Post: Need help finding a Financial advisor

Post: Are rents dropping in your market? You are not alone.

Post: Investing in California vs. other landlord-friendly states: What should I do?

Post: In Search Of - Home Insurance Providers for Quadruplex in Columbus