All Forum Posts by: Jonathan Oh

Completely agree with @Frank Wong. You need to assess your goals and current financial position and start from there. Depending on the amount of capital you have to work with, some markets may work others may not. Lets take this example: Dallas and KC are both great markets, but Dallas tends to has higher price point than KC. Would 1 property in Dallas be more in aligned with your goals than a possible 2-3 in KC? This is just one of many questions you should be asking yourself. Check out this article: https://www.biggerpockets.com/member-blogs/10776/72492-choosing-the-right-us-market-to-invest-in-the-4-step-guide-to-success

Also, you can make or lose a lot of money in any market. Once you found a market that works well with your goals, you need to build yourself a good team. This part is absolutely crucial if you are wanting to invest out of state. If you're planning on doing a BRRRR, start off by finding a good agent that works with investors. Hope this helps and good luck!

@Account Closed Do you have any capital to work with? You're going to need money to invest. I don't know what your plan is with the foreclosure, but if you plan on getting a conventional loan anywhere down the line, you'll need proof of income. You're still young, so my suggestion would be to look for a job in real estate. I worked for a developer my early years and it helped me not only understand that side of the business, but all the jargon as well.

@Erik O'Grady Ahh I see. I thought you were saying you just bought this. There are pros and cons of paying down the mortgage. Its all down to your preference. Glad to hear your success!

@Joe Villeneuve I agree. I think these flipping/wholesale course promoters are a big part of the problem. Just look at their marketing. "No Money! No Experience! No Problem!". They give the false impression that anyone can just walk in, do a little research, and get all the money in the world to fund their deals. This is a business. It's no different from a fresh out of HS grad going to a VC and saying "I have no background on creating an app, but I heard its a good way to make money. Please give me funding!"

@Erik O'Grady

Congrats Erik! Quick question - both purchase price and cash invested is $178,000. So was this cash purchase? If so, i'm curious as to why you went that route?

@Yulyana Karpava In my opinion, investing in a condo/townhouse won't make it any easier than a single family. Like many BP members, I am not fond of investing in condos. There are many limitations of condos. For example, you'll be limited on the type of improvements you can make. HOA can also potentially impact your cashflow later. HOA fees could rise and demand unexpected assessment fees. Condos also tend to appreciate less than single family. But there are people that make condos work, so if you still want to pick up those properties just make sure you do your homework. Good luck!

@John Elias I bought turnkeys as well. You will get a general feel of the purchase process, and how to analyze a deal for cash flow. It's a little "safer" because turnkeys have done the rehab for you. I quote "safer", because it really depends on the turnkey provider you work with. There definitely are some bad ones out there, so do your DD. Having said that, I think one the big reason why people go with turnkeys is because they just don't have the time. They are fully committed to their day career and want to keep it that way. I also know many out of state investors who actually take the time to connect with agents, property managers, and contractors in a given market and they are doing well - so it is possible. At the end of the day, it is down to your preference. I see nothing wrong with starting out with turnkey.

If you need some help finding some turnkey companies shoot me a message I'll be more than happy to help you out. I haven't worked with @James Wise yet, but I heard great things about HoltonWise. I would check them out too if you're interested in Cleveland market.

I tell people that the lender requirement of having appraisal come in at or above purchase price is a good thing. In a way, it gives some assurances whether you are overpaying or not. I buy turnkeys (my personal choice) so I wouldn't bring in extra cash if appraisal comes in lower. I also never heard of anyone who actually came in with cash to make up the difference on a deal. So just curious, why would investors do this?

Thanks all for the input. I am excited to see how the PM landscape will turn out with all these new technologies coming out. I hope to see an end to the old, inefficient methods many PMs are using at the moment.

If you invest long enough, chances are you have had frustrations with property management. But, I recently had a talk with an agent that told me that most of his investors saw better results by self-managing. They used PM software like Buildium, Appfolio, etc. I was wondering if any BP members have or still uses these software instead of a local pm company? What are the pros and cons? Do you believe this is where the industry is going to begin to move towards?