All Forum Posts by: Johnathan Alesso

For a realtor, I would connect with someone on this site.  I don't know a local Albany realtor, personally. You can also call a local realty office and ask to work with an investor-minded realtor.

Good luck!

Hi Amy,

I might recommend viewing this in a positive light.  If information is missing, there's a good chance that other investors will skip over it.  These listings may also be great contenders to rehab projects if the seller is concealing unsavory information.  I've heard of one investor who focuses on listings with only one pictures as he assumes there must be something wrong with the house.  If you're willing to visit the property, estimate the rehab costs, and fix it up, you may just stumble upon a hidden treasure. 

In fact, this could be seen as the e-version of driving for dollars!

Let me know how it works out.

Johnathan

Hey Anthony - if you hold it on the third Thursday of each month, I can make the next one in December when I'll be in town.  Good luck! 

Where are you looking to invest?  As a fellow coastal Californian, I have not come across many $100K properties.  If so, where are they?

Are you looking in Nevada or Arizona?

I would first check with other local insurance companies.  You can find references on this forum or from other local investors. 

Are you requesting full coverage of actual-cash-value (ACV)?  The ACV quotes are much lower, but so is the coverage level.  I personally use ACV for the much lower rates.

Have you contacted Foremost Insurance? 

Hi Louie,

In my experience in Pennsylvania, the section 8 rules can vary by county.  In general, I have had positive experiences with these tenants and prefer them to standard ones given the predictable income each month. 

Regarding screening, you can use whichever tool you use for other properties.  You will still want to conduct a full screening process to include reference checks from previous landlords.

I have had to call my local Housing Authority to establish the program.  You can also visit in person which may be more expedient. 

Typically, the tenant still pays the security deposit. 

You may want to consider hiring a property manager who can perform these tasks if you are investing out of state. 

Hope this helps.

Johnathan

Welcome to BP!  I have family in Albany.  I can definitely see cash flow opportunity there.  Be sure to check local taxes as they vary dramatically by county. 

Do you have a realtor in place?

Johnathan

Hi Varinder,

We own all 30 properties in western PA.  The market is ideal for cash flow, but do not expect any appreciation.  You can find lucrative properties in the old steel towns along the rivers if you don't mind higher repair and maintenance costs.  The entire Pittsburgh metro area contains pockets of great cash-flowing neighborhoods.  You can easily meet the 2% rule.  You can also look at points north and east, such as New Castle or Latrobe, but you may have more difficult placing tenants. Pittsburgh's housing costs are very low relative to its strong-ish economy.  One other benefit it the low cost of contract work.

I don't know Philly well.  I do understand that it is significantly more expensive than Pittsburgh, but cheaper than other East Coast cities.  I imagine you can find good deals in the inner ring of suburbs if you're willing to pay more in a downpayment.  PA law is generally middle of the road in terms of tenant/landlord friendliness. 

Hope this helps.

Johnathan

I completely understand and empathize.  I agree with an earlier post that the greatest motivator is a lackluster job.  Have faith, though, because there is way out!

I have focused on minimizing my expenses so that my "financial freedom" number is lower.  That is, how much cash flow do I need to meet my mandatory monthly expenses?  If I reduce my expenses and live frugally I can cut down how much rental income I need.  For tips on frugal living, check out the blog "Mr. Money Mustache." 

If you can live on $4,000/month, you'll only need 10 properties that cash flow $400/month.  That's perfectly achievable and  viable escape route, especially at your age. 

I see you live in Massachussetts.  MA is expensive, but I'd recommend checking out rental properties in New Hampshire and inland Maine.  Portland, ME is fairly affordable, too, and you'll have more contactors and such available.  You may also want to check out the southern part of MA, such as Falls River, as these towns tend to cash flow well. 

If I can share one piece of advice, it would be to get started now! 

Good luck!

Johnathan

Hi Tiara,

This is a great conversation.  I invest in Pennsylvania from California so I need to rely mostly on turnkey deals.  However, l have come to learn the hard way that "turnkey" doesn't always mean tenant-ready.  I would be sure of the seller's definition of turnkey as I've had to put a lot of money into repairs. 

I would most likely pursue a combination of turnkey and BRRR if I were to live in PA. I believe it's fair to say that BRRR is slightly more risky with more potential rewards. Turnkeys are probably a better foundation while BRRR can provide more immediate returns.

If you are local, perhaps you can try both. If I were new and living in my target city I would probably choose BRRR to build capital more quickly.

Hope this helps.

Johnathan