Quote from @Alexa K.:
Quote from @George Duchatelier:
Quote from @Alexa K.:
You mentioned you're almost strapped for capital and you've already got two properties under your belt. I'd be cautious about biting off more than you can chew if this is your first year investing in rentals, especially in the Youngstown area if you're not highly familiar with the location. Those unplanned for expenses come quick and hard.
You’re right. I should prepare for unplanned expenses. I see you’re from that area as well. How do you like it out there? What’s the town like? I need to visit one day just to check up on my properties out there. So far I’ve been ahead of any issues that came up so far
I'm a Youngstown native who spent equal time growing up and living between here and the Tampa Bay area, so I'm comfortable and familiar with both markets, though I'll probably never invest in FL outside of my second home. Youngstown is ideal for investors with less capital to work with, but a good deal of out-of-state investors bite off more than they can chew because Youngstown is a very peculiar area -- one street can have nice houses with decent appraisal prices, while the next street over appraisal prices are in the gutter and your likelihood of being shot is considerably heightened. There's been an influx of out-of-state investors purchasing overpriced houses in less desirable parts (or streets), I'm talking purchasing houses for 45k+ that pass hands between locals for 10-15k. Seen quite a few, even from these forums, end up trying to sell their mistakes months later. So I'm cautious on where to invest and only do so in particular neighborhoods, or on particular streets, because two streets can be the difference between an extra $250/mo, or having to lower rent prices below average in order to get the place occupied. It'd be wise to visit Youngstown for an extended visit to see how the area is, pay attention to the local news and see where most of the crime happens, and definitely pad your savings account for rainy days
I personally prefer to purchase distressed properties for 20-30k in decent parts of town, rehab them, and refinance them to pull all, if not most, of my money out. If you do happen to go the JV route, that might be something to look into with another Youngstown native, as it's probably the best bang for your buck but is certainly time consuming.
I appreciate the info. My realtor out that gives hints on areas where to look at and usually lets me know how the area is which is super helpful. So far I’ve been lucky I guess but only time will tell.
i definitely plan on visiting Youngstown to look at my houses and area. One of my houses is in Niles. Seems to be pretty good so far. Rent is pretty high for the mortgage I’m paying on it.
I appreciate your input and I don’t understand the whole buying rehabbing and all that yet. Too many numbers and letters and high interest. In order for me to do that, someone has to sit with me and explain it to me with a great deal of patience. I’m in orlando by the way. I wouldn’t buy here either just cause the prices are super high now
