All Forum Posts by: Jonathan Oh

@Alex Liccione
As you do your research on markets, look for the following at a minimum:

Population growth

Job growth

Diverse industries

Affordability

Unemployment

There are definite pros and cons to this approach so make sure you know about them. Good luck!

What type of investor do you want to be? Active or passive? If active, I would start looking for a job in real estate. Assistant, analyst, agent, anything. You are still young so you have a lot of time to learn. I'd say it may be a little difficult to get approved for financing, but once you get a ft job, many more doors will open up. You may also be able to invest if you have a sizable amount of capital. It may be worth reaching out to some non-traditional lenders.

I live a house with an ADU in La Habra so I am familiar with the numbers. But I think you may be looking at BRRRRs the wrong way. You should be getting most if not all of your money back out on the refi so returns are not going to compare to buying a house with an ADU. Considering the costs to build the ADU and its potential income, the ROI is very high. But you have to consider the cost of the house as a whole. If you're in the market for a primary home, then this may be a great option. But double check your numbers if you intend on renting both the house and ADU. I have a hard time believing that you'll get a better ROI doing that vs a BRRRR. I'd even say you can get better returns on a turnkey.

But the best question to determine what you should do is - What type of investor are you? Some people just aren't comfortable investing in properties they can't drive to. If that's you, stick to LA. If not, then I'd at least research other options a bit more. Hope this helps!

@Lena Davis Just curious why Memphis?

@Abby Robinson You need to get a good inspector. They'll find the major issues. If there is a major item in particular that you're worried about such as foundation, sewage lines, etc. then you can hire additional specialists to check it out.

I started out with turnkeys and think they are a great for certain types of investors. People that invest in turnkey typically do so because they either (1) don't want to put in the time/work, (2) their local market is too expensive, or (3) they don't want to risk messing up on a long distance BRRRR. But if you can find opportunities near by, then I'd pass on turnkeys and do that. Only concern I have is that you mentioned properties are in 600k where you live. That tells me it might be difficult to find a workable deal. You also mentioned you're afraid to make a mistake on such a big investment. Seems like you got some more decision making to do. If you're still considering KC, feel free to DM me, I'm actively investing there as well.

@Mary Ann

Unless things have changed from my conversations with them few years back, they require investors to provide funds up front for acquisition and renovations. This is not how most turnkeys company operate. They do the renovations first and then sell you the property. Never pay upfront for rehab whether you're going through a "turnkey" company or doing it on your own.

@Sabri Isbikhene If you want to go into a market that cash flows, but has a brighter future (based on today's data), you may want to look at Kansas City and Indianapolis. Both markets provide cash flow and a good outlook. Beware however that price points will be different.

@Pierre Victor You can do much better than 10% for a C+ neighborhood and your requirements you have. As far as overcoming fears of out of state investing, I bought properties sight unseen too, so its possible. But you have to be very thorough with your research. And I highly recommend to visit your market if you get a chance. It will get you a better feel for the market.

@Ali Suleiman It depends how much capital you have to work with. If you have a good amount, then I'd start where you live if prices make sense - house hack, brrrr, etc.. If you don't have capital - practice analyzing deals, get an internship with a broker specializing in investments, or do something that will get you more experience.