All Forum Posts by: Gawaine O'Gilvie

@Gawaine O'Gilvie This is exactly how I felt when I started. I was living in NYC (where cash flow is super difficult for beginners) and I had some money but not a ton, reading Brandon's book.

The challenge with a lot of the books out there is that they leave you overwhelmed. 

I actually just did a road trip from Jersey to Texas and visited a ton of markets and learned alot by going there, but it really just confirmed most of the information I learned by doing online research.

20K might be a enough, depending on the house and what market you get into. 

Here's how you figure it out:

1. Find the median home price in an area.

2. Multiply that by .3 (25% down for down payment and then 5% for closing costs totals 30%)

3. Add any money for rehab (this could be zero if you get a currently rented out property that doesn't need much fixing)

So with that formula, you will likely have enough for a house 66K. 

There are plenty of markets I saw with houses around that price to start. 

@Gawaine O'Gilvie -- I'd learn your market first! I've invested close to home and far away and your going to take your lumps either way so I think its great to learn your market and find the deals available to you, then expand. There are so many investors in Boston finding deals! Right? Maybe try the suburbs if you are looking for a lower point of entry! I live 30 min from Manhattan and so real estate values here are also definitely higher but I've purchased multiple deals right here for 250k or below. I bought a flip for 157k, as one example. A two-family for 225k. These were on market deals. Really dig in and make sure youre seeing all the low priced deals coming on in your market. You'll know when a good deal hits. Don't forget it's all relative, meaning if every house in a particular town sells for $200k - its no longer a deal at this price. In that town, you'd want to get a house for $100k, etc. But you'll only know a discounted property when you see one by studying the market and watching what comes on and running comps, over and over. Go see houses and practicing analyzing deals and making offers! Good luck.

Hi @Gawaine O'Gilvie in Detroit (and southeast Michigan in general) you can get something in a C-D neighborhood for $30-$50k cash (but I wouldn't recommend that if you're hands-off and out of state) or you can use it as a down payment and buy a house in a B area in the suburbs for around $130k-$150k. (Eastpointe, Warren, Hazel Park, Taylor, and Romulus are the areas you should look at)

Keep in mind that finding financing within the city of Detroit is still difficult, especially if the ARV is below $75k.

I believe Cleveland and Toledo in Ohio are quite similar, I wouldn't go to Illinois because of the very restrictive tenant-landlords laws, and I don't know much about NC and AR. 

Hope this is helpful, 

Be very careful on cheap buildings. If the rents are low and you are trying to manage from out of state the management fees/repair costs manager charges will often destroy any cashflow. It's often better to save up a bit more and buy 1 higher rent producing building even if have to wait a bit longer. I like 4 unit buildings. 

Be very careful on cheap buildings. If the rents are low and you are trying to manage from out of state the management fees/repair costs manager charges will often destroy any cashflow. It's often better to save up a bit more and buy 1 higher rent producing building even if have to wait a bit longer. I like 4 unit buildings. 

@Gawaine O'Gilvie,

Where ever you decide--- VISIT at least twice before you decide.    If you're doing anything below a "C" type of property, you'll need to see what the streets are like.      Right now where I invest, someone is trying to flip a house that's legit across the street from a drug dealer, everyone who is local knows it's a horrible section of the street-- but the flipper obviously didn't care.   The house has been sitting on the market for a month or so now, point being-- network and make friends with local investors through meetups, they know all the stuff you can't find out online.

@Gawaine O'Gilvie congrats on saving and getting started! I’ve invested in and out of my immediate area and I can tell you that if I were doing my first investment again I would do it in my own market... I’d there any reason why you are researching other markets than your own? I’m a believer in there are deals in every single market. If you study the market hard enough you can find multiple deals in your own market.

Yes! Save up to $50k and you can buy a good house in a decent neighborhood here in our market free and clear. Rent it out for $800-$900. It'd be a great start. Let me know if you're interested brother!

I can only speak for Raleigh area.... you will be hard pressed to find something in Wake County for less than 200k, without at least some rehab or capital improvements.  Since you're doing remote, it's an investment, and most lenders are requiring 25% down.  So on 200k house that's 50k right there...without any additional rehab/upgrading/closing costs.  Most homes in this market, depending on price point, are selling 15-50k over asking price right now. No to say with some extensive searching you wont find some.... but if you're looking to minimize upfront costs to get in the game, look in areas like Winston Salem, Fayetteville, Smithfield/Selma, where you can still buy a property for $125k.  Just my perspective, but I'm not pro.

Good work on saving!