All Forum Posts by: John McDonald

You need to get your income up. First and foremost. Look into a second job. That 30K can be gone with one emergency. I would get out of NY. The crime, homelessness, and migrant crises are going to take years before they get any better. Not a good place to live or invest. Research places with low property tax. Your income bracket means you shouldn't be paying very much in state or federal taxes. Buy a small home that has 3 beds and baths. Live in the master, rent out the rest. Or a place that has a garage that can be hacked or enough of a yard in the back to add a small rental. Research areas that allow this. Research! At your income level, you may qualify for help or reduced property taxes. Keep in mind, that this chart is only at the state level. There are county taxes added to this. Also research utility costs. Hawaii utilities are brutal. 

Quote from @Mike Paolucci:

I wouldn't recommend buying a flip or BRRRR for your first deal. You want to limit your risk as much as possible for your first deal or two before diving into heavy projects.

Turnkey single family home that is positive cashflow from day one will be the best way to learn about being a landlord. Get your code 4 (investor focused agent, lender, local property manager, contractor). A good property manager will help with the contractors and make sure you don't get taken advantage of. 

I completely agree with this. A specific niche that people don't look into is renting to traveling nurses. They keep the place clean, never miss the rent payment and there are always available renters near a major hospital. You will learn everything you need to from this single-property. An excellent property manager with years of experience is key-they most likely can supply you with a contractor.

My wife and I lived in Sacramento. She was born in CA. We moved to the Dallas area two years ago. After all the research. This was where we decided to land. Austin has horrible homeless. All the major cities do, especially if they lean left-which all the cities do because they attract younger people. No matter where you go, keep this in mind. 

There is no place on Earth like California's weather. The mountains, the beaches but it's just done for. I can't understand why anyone who can get out has stayed. The taxes are the worst in the country and will continue to get worse, the crime, the homeless. My two cents is this: The investment opportunities are second to quality of life and enjoying the here and now. I have heard wonderful things from people who chose Tennessee. 

I can't recommend Texas. The volume of people, the traffic, and the heat in the 4 long months of summer combined with no outdoor activities. While Austin is the most beautiful out of all the areas in Texas, the heat and humidity are worse than in the Dallas/Fort Worth area. We have decided to move to NH for its endless outdoor activities both in the summer and winter. Our kids are grown, and schools are not an issue. We work from home so can pick anywhere. And I grew up in the snow, and it doesn't bother me.

My point is it is such an individual choice. I would recommend spending time in Tennessee in the summer to determine if you can handle the heat and humidity. For my wife and I who hiked and biked every weekend in CA-not being able to do that in TX has been brutal. We miss the mountains and the smell of pine trees every weekend. We underestimated how important this is to us. Make sure you are honest with what truly makes you happy and move to an area that supports that. As long as the schools are good and the crime is low you can invest anywhere. There will always be pros and cons.

Detroit. Find a property manager and realtor who has years of experience and can provide trusted contractors. Then set up a partnership with them. Locate the properties with flip squad. Have your new team do the walk-throughs. You buy, they manage.

My first suggestion is to look for houses closer to you. Inexperience mixed with drive times to the site isn't something I would recommend. At this point, you don't have a team you can trust. The amount of learning and researching before your first flip should be substantial. Start with a soft flip. Mostly cosmetic work, staging, and curb appeal. This will allow you to get your feet wet without being overwhelmed. Once you get a team of contractors, legal counsel, CPA, money lenders-etc you trust in place, you can begin to be more aggressive with the amount of work that goes into the property.

Here's a generic bid sheet for a basement finishing project. First job-cross off anything that is not in the plan.

Design and Planning
Permits and Inspections
Demolition and Disposal
Framing and General Carpentry
Electrical Work
Plumbing
HVAC
Insulation
Drywall and Finishing
Painting
Flooring
Ceiling Installation
Interior Doors
Trim and Finish Carpentry
Lighting Fixtures
Bathroom Fixtures
Kitchenette/Cabinetry (if applicable)
Countertops (if applicable)
Appliances (if applicable)
Hardware and Fixtures
Built-Ins and Custom Details
Cleanup and Final Touches
Contingency (for unexpected costs) --

I have not considered this as an investment avenue. I will be following to read how others have used this strategy. Thank you for posting!

I would research doing a lease option for the person willing to rent. 

Each have their own unique qualities that may be a better fit.  Take a trial of all 3 and see which one works best for you. 

Cheers

Quote from @Ben Scott:

Hey @John McDonald, what platform do you use to show you were deals are in OKC? Is this a software? Just curious. Thanks!

Hi Ben. Sending DM as I can't post the link here.