All Forum Posts by: Erin Azar

I would still buy it. We recently were in the running for a house under similar circumstances and I had to check my gut on it. Ultimately, we did not buy it for other reasons, but I came to terms with the horrid past it had that brought it to market. My plan was to do a totally reno and have the house blessed by our Priest. Just an idea....

I like cash and I like it to be mine (no partners). At least for your early fix n' flips. This was my choice for several reasons:

1) Making a mistake hurt, but it is twice as bad when it hurt someone else too.

2) I did not want an audience (critical partners) as I was finding my own footing.

3) I went into RE to be my own boss, so having a partner felt burdensome - not freeing.

4) In the past, I always took care of partners before me, if there was an issue. I knew I would make them whole before I took my cut, so that was already a loosing position.

Only now would I consider a partner. I am confident in my RE successes and have the resume to prove it. I would be able to craft a fair partnership and accept the roles that we agreed to. I would not have been able to do that in the beginning.

Hope this helps!

I would definitely advise you to start local (3-4 hrs away) and then go out of state for the 2nd property. So much to learn that you will miss out on, by it being remote. If that is an option, I suggest going at it that way. That will build you confidence and then you can try remote investing. I know lots of people sing the praises about their success with going out of state immediately, and I do think it can be done, if that is your only option. However, I am sure there are many stories out there of failures with out-of-state investing. Those folks are less likely to share their story. 

I have found that my hot tub has enhanced my RE investing. It gives me time to think. The cold air in the winter does something to keep my me aware....so maybe a hot tub in the winter is the best combo :)

You have certainly given your builds the right thought. I still by SFH for rentals, and I do look for cash flow if the market growth rate is typical midwest. If it is in a hotter market with appreciation, then I settle for break even. It must cover the mortgage + ins + prop taxes + ~150-200/mo for repairs etc. I usually do LTR and I am now evaluating some for MTR. I avoid HOAs always, and I like when zoning would permit STR (just to future proof options). For construction, there needs to be 2 bedrooms with connected bathrooms, open(ish) kitchen, nice family room, 2 car garage. Always there needs to be bathtubs in some of the bathrooms. That is overlooked often by builders. Families need bathtubs for their kids, and that is a must! I like the buy down of interest rates from new builders on long term loans - that is their secret sauce these days.

I would suggest visiting Baltimore yourself to determine its potential. It is a challenging market to manage in and predict its future. I think there are other similarly priced markets that are much more appealing.  

I would suggest working with a locally seasoned Civil Engineering firm to help guide the conversation. We do this in the Midwest for many clients. Finding out the requirements is very important, but rezoning is both an art and a science and it has much to do with ordinance build requirements, quality of the design, ultimate land use, local priorities of land use, adherence to existing design requirements and subtleties of the community leadership preferences. There are also public hearings for rezoning and you will want a professional representing your project to navigate commissioner's questions/concerns and public citizens concerns. While ordinances are often black and white, the process is not so cut and dry and it varies greatly between different cities and counties.

Craft a contract that pays the engineering firm at certain delivery points, so you do not get in too deep on the project before you get the right approvals/or at least a good idea of likelihood of approval of your design. It is a journey :)

This convo really took a turn and I cannot stop laughing. Love how it has become a beer and wine confessional. 

I look to the old cultures that have really mastered health and not fret over trendy diets. The French, Japanese and several Middle Eastern countries have mastered longevity. So I take the best of those - small portions of rich food + wine from the French - fish, seaweed, and soy from the Japanese, and grain-based mostly vegetable dishes from the Lebanese. Beer came from the Monks - so it must also be good. Beer also is a meal and a drink in one, when it is the good dark stuff. I think we get too rigid in diets and that is why it fails. Don't re-invent the wheel...just mimic what has worked for 1000s of years.

I would go cash flow in the Midwest. These markets have also has significant appreciation, so we are not making the trade off out here (for last 3-4 years). Cincinnati is a great market with a ton of new projects coming up to increase value of that area.

I agree with this advice. I know there is a lot of talk about Midwest not appreciating, but I have had exceptional results here, so not sure why that perspective has caught root. My houses (Indiana) have doubled in the last 2.5 years. Typical house that I bought was 50-80k, typical fix up budget (all in) has been 10-25k, and most of those houses now sell for $130 to $190k. Cincinnati is my next target market, and I think you would be well served to invest there.