All Forum Posts by: Jason Ray Richardson

You definitely are braver than I am, I was freaking out when I bought my first rental that wasn't in my own neighborhood. It can work if, like David Green says, you have a good group (I think he calls it core 4) in those areas that know what they are doing.

All I have currently is single family, mainly because it's how it's fell not me trying to avoid multi family. With that said, all of mine are cash flowing. What I have found in my area is that single family attracts a more stable tenant than the multi family's do. So while it may cash flow more in the short term, if you are turning over tenants constantly that costs. Just my two cents for what it's worth.

I didn't get a lot of feedback. That coupled with what I knew about the area I chose to pursue some other opportunities. However, I believe it is still on the market.

 I think a good book to read would be the Monk and the Merchant. Not to spoil the book for you (which is a quick read) but both of them find meaning in their professions and find that both are important.

I think you are being idealistic as well. There are bad apples in any profession and no matter your dream job, there are going to be things that you don't like about it. Is it meaningful work? You determine that because it is based on your goals.

With the exception of one, all of mine are in the same neighborhood as I am so I self manage. The one exception is 85 miles from me and I have a property manager for that. The numbers on that unit were too good to pass up. Initially I was against the idea of investing where I couldn't see them everyday. However the more things I read and podcast I listen to, I'm learning about setting up processes so I can be more hands off on my investments.

 Several of my rentals have had existing renters in them already. I've been fortunate that they were good ones, but they were all paying under market rent. One 1 went up by 200 a month, the others 25 and 50. I did based on my gut feelings and also what the former owners said about them, the ones I went up by 200 called on everything and the ones I went up less on were low maintenance. So far so good. But in all those cases they were operating on no lease or expired leases.

Are all the rentals rented? If so, for how much?

Like many have already said, "It's whatever you are comfortable with". The "slumlords" can make good money but they also risk more potentially with the type of tenants they attract (low credit scores, section 8, etc.). The rule thumb is the greater risk, the greater the potential works. If you are just getting started keep reaching out to people on Bigger Pockets or in local groups to give you advice and then go with what you feel comfortable with. BUT regardless of what you go with, make sure the numbers work. Don't fall in love with a deal just for the sake of doing a deal.

When people say rules (ie. 1% rule or 50% rule) they really mean guidelines which means that they aren't set in stone. There is a lot that goes into buying and BURRing . You have to look at a lot of deals (both houses and financing). Not all of them are home runs, but every time a baseball player steps to the mound he doesn't hit a a home run. Sometimes you just got to keep swinging.