All Forum Posts by: Account Closed

Areas with tons of appreciation and little/no CFs make sense if A) you have a long timeline for the investment and B) you have enough cash reserves so that this property isn't lowering your quality of life.

Continue using BP and try and attend REI meetups in your area. You'd be surprised how many people are willing to help out and share their knowledge/experiences. Learn from others' mistakes before you make your own!

Definitely look towards the midwest. I hear great things about Cleveland, and Detroit has strong metrics for CFs, though I've heard some not so great things about the experience of a landlord in Detroit. 

Depends on a few things: what kind of cash reserves you have, what % you put down, is it a high appreciation market? $150 is better than nothing especially when building equity, but all it takes is a bad storm or an HVAC issue for you to be net negative. 

You can't beat the rates of an FHA loan. By putting a really low down payment, it does get harder to cash flow though, so beware of that. Maybe try and find a market you suspect is due for serious appreciation.

Hi James,

if you're a prospective first time home buyer, look into house hacking with an FHA loan.

Hi Ran,

Always set aside some cashflow from the rental income for general maintenance, or future renovations. When underwriting, always consider potential vacancies/tenant turnovers.

From an investment perspective, the price:rent ratio as well as the 1% rule (monthly rent 1% of home price) are good metrics in general to assess a rental property. 

Hi Scott,

Cleveland has a great price:rent ratio. The prices are affordable even for MFs, and rents are strong. Cashflows are a huge pro of this market, and a con would be the population doesn't show much growth and appreciation is right along the national average.

 Great numbers for a house hack!