All Forum Posts by: Jordan Carnes

Thanks @Tal Simpson. I guess the 1% rule is a little more common on here. Those numbers look pretty good for a property in a B class neighborhood. Have there been things about the property/deal that you double checked to make sure there wasn't a hidden issue that made the deal seem too good to be true? I'm trying to put a "due diligence" checklist together for things to look out for in B class areas vs. C class areas.

Thanks again for the response.

Hi Everyone,

I'm just getting started in out-of-state investing and am in the process of narrowing down the market I want to invest in. I've been looking into areas like Birmingham, Alabama and Indianapolis, Indiana for multifamily residences, but figured I should be going about this a little more analytically. I read previously that price to rent ratios above 16% were considered favorable for buy and hold investors, but wanted to get the community's thoughts on how you incorporate these ratios into your analysis on the macro (different markets) and micro (inside a specific market) level.

Do you shoot for a specific number when looking at markets from a macro level?

How does this number affect your decision on the amount you're willing to spend rehabbing a property?

Should I be prioritizing this number over other numbers? ie: job growth, population growth, etc.

Thanks in advance everyone!

Jordan

Hi Hannah! I'm sorry to hear about your new health challenges, but it sounds like you're staying optimistic about transitioning out of the military. I got out of the Army about 2 years ago and it has been an exciting adventure.

So full disclosure, I don't own any rentals in the East TN area (yet), but I was born and raised in Knoxville, so I may be able to help a little. There are several great markets in Tennessee, including Knoxville and it's surrounding suburbs. West Knoxville, particularly Farragut, is a higher priced area with more commercial growth. You'll find more A class neighborhoods there than anywhere else. Karns, Powell, and Halls are great communities in the north with steady growth and decent schools. As you get inside the 640 bypass closer to downtown, you'll find less B and more C/D class residential areas mixed in with the commercial areas. In the downtown area, there are a lot of people buying fixer uppers to rent to the college students that go to UTK. If you're planning on BRRRR'ing most of your houses, it might not be a bad idea to start looking away from the college. UTK is a pretty big party school, which eventually means trashed rentals.

Another area to take a look at is Maryville. It's been a growing area for awhile now, but since it's still outside Knoxville, the prices may be cheaper. There are several large business around Maryville, so you should find a decent customer base.

Hope you find some great deals down in Knox-vegas and feel free to ask more about the area.

Welcome to Bigger Pockets @Kyle Bond!

As Steven Covey says in the 7 Habits of Highly Effective People, "begin with the end in mind." Think about why you want to invest in real estate. Are you wanting to retire early? Do you just want the financial freedom to do whatever you want? Or are you just bored? Establishing a "why" will help guide you as you learn about Real Estate Investing.

Next pick a strategy. You can buy single family homes and hold them for monthly cash flow. Or you could buy houses, renovate them, and then flip them for a profit. Pick something and try it. There are many other strategies out there, some of which can be found in the Ultimate Guide @Trexie E. mentioned.

One piece of advice I was given when starting out was to only learn as much as it takes to make the next move. Once you decide why you're doing it and what strategy you're going to use, start researching how to find your first deal. But don't keep reading and researching just to satisfy your curiosity. Don't let your education be an illusion of progress. Execution is the name of the game. You have to get your first deal under your belt.

Good luck on your journey!

@Todd Dexheimer would he need to do a 1031 since he's owned it for more than 4 years? Or is it because it's not his primary residence that he would need to use it to keep his profits tax free?

@Natalie Schanne That's amazing news to here! I currently live in the same area. At first I set an arbitrary goal to close on a house sometime in the first quarter of 2018, but you're right. I just need to do it already. I think within the next 6 months is probably a better timeline to allow me to learn the numbers, do the research, and find the deal.

Thank you all!

Hey everyone! My name is Jordan and i'm a 27 year old single guy working as a federal contractor in the DMV. I started investing about 5 years ago and really started getting serious in the last 2 years. Now that I feel like I have a pretty decent foundation for my retirement portfolio, i'm ready to start exploring other avenues to invest my money. Real estate investing has always been a mystery growing up, so i'm excited to take on the challenge.

My initial plan is to make my first investment a house hack since i don't have any family obligations. I'm wanting to find a single family home to live in and have 2 or 3 roommates. I've lived in DC a little over a year and it seems like most younger people are either renting apartments or have roommates.

I'm looking forward to learning more from all the veteran real estate investors out there!