All Forum Posts by: Jake Kilfian

Rob, What you should invest in is a personal preference. If you go to your financial adviser he will most defiantly tell you mutual funds because they can make money off of it. Advisors will almost never tell you real estate because there is no way for them to benefit. I would say buy a rental and use to cash to reinvest and buy more rentals so by the time you retire you will have a nice money making machine assembled. Real estate is multi dimensional asset class that makes you moneys in many different ways while you hold the property. It is also great for tax purposes. You have to understand though, its not completely passive. You will have many more head aches with real estate, but its all part of the experience. You need to ask your self if your ok with a more high maintenance investment. Even if you have a property manager, you will still have to manage your manager. In my opinion, its worth it. 

As far as a market is concerned, the more boring the better. Cali and New York City are good examples of terrible places for buy and hold. Why would you buy a house for $1 Mil that rents for $3500 when you can deploy that same 1 mil and  buy 10 houses for $100k each that rent for $1k per home. You can find a lot of good markets in the midwest. Indiana, Tennessee, Ohio, etc. The second biggest determining factor would be a great property manager. The property manager you pick will be everything when investing at a distance. They will make or break your investment. 

@Peter Lohmann

You live in a great market for passive income. Welcome :)

Welcome Chris! Ive hear it both ways on the LLC subject. Some say start an LLC right away, others say you don't really need and LLC until you get over four properties or so. Your individual net worth would play a role in your decision. your best bet would be speaking to an appropriate professional so they can help you with your individual situation.

Rentals are an awesome way to build wealth and if you stick with it, purchasing 25+ units should easily be attainable. 

Robert, I bought a rental with a few trees next to it and ive had several problems because of it. One of the obvious issues was the gutters became clogged frequently. Ive also had sewer backups because of tree roots in the main sewer line from the home, and that     was not a pretty picture.

I also asked my wife about this, her being an insurance agent, and she said most of her Insurance carriers would require this tree to be cut down before they would insure the home. So if you bought this property you may have to figure in the cost of having it properly removed.

Welcome Tyler, you have come to the best place online to learn real estate. 99% of your questions can be found within these forums. Tons of great info. It also helps that you happen to live in a great place to invest. :)

Hey Douglas, my wife works with many landlords in Ohio including out of state and out of country investors. She may be able to help you out.  

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I discovered BP podcast and started listening to every episode. The information I revived from those shows led me to take massive action and buy 4 rentals in two years at the age of 27. This site/podcast has changed my life! I never knew that real estate was a possiblility for the every day person. This site has given me and my wife hope for the future. So thankful!!

I always go for the longest period possible. Makes for higher cash flows and good hedge on inflation. 

If he demands an offer then pull up the lowest possible comps in the area. Tell him to understand that you haven't seen the property yet, but by looking at the numbers and activity in that area then you can make him an offer around X. (X being one of the lower or lowest comps in that area) If he agrees that an offer around that amount is fair then  set up a time to meet with him. Once you go to see the property just start deducting repairs and other things to bring your offer price even lower.