All Forum Posts by: Jordan Rhoads

Dayton and Toledo. 

I live in Idaho and I'm currently BRRRRing my first rental property in Ohio with my HELOC. I want to build fast and get experience so I transferred my 50k Roth IRA to be self directed. My coach is confident that I can buy and rehab a SFH in Ohio for 25k-40k.

After some more research, I'm starting to wonder if I should have just withdrawn it and ate the penalty so I could just buy property outside of a retirement fund. I'm only 30 and I'm hoping to be able to live off my investments long before I turn 59 1/2. My money could grow faster when leveraged (or BRRRRing) outside of an IRA than not being leveraged in an IRA, right? I'm thinking I'd put some in stocks as well to diversify.

Anyway, If anyone could give some advice/opinions I'd greatly appreciate it. Thanks. 

THanks. I'll message you.

@Susan Howard, Pocatello is about an 8 hour drive from me so it'd be a pretty similar experience as investing anywhere else in the US. Also it's more expensive than Independence. I'm actually considering Dayton, OH now as well. The prices are much lower than KC and it seems that the numbers would be more forgiving. I wouldn't get much appreciation but for my first deal I mainly want experience and I feel that's a good place to start. I can always branch out to other markets once I get confidence. 

@Susan Howard. 64133, 64138, 64137, 64052, 64055, 64056, 64030 Or pretty much anywhere in Independence, MO. But I'm open to anywhere. No matter where it is I'll get multiple opinions of the neighborhood before putting in an offer. 

@Jay Hinrichs, I was hoping to try the BRRRR strategy which doesn't really work in Spokane. And it'll be difficult (not impossible) to find deals in my price point. I may have to partner with someone. But you're right. Flips do work in Spokane. I suppose I could do at least one flip in Spokane before BRRRRing out of state. That would provide good experience and extra capital to BRRRR with out of state. I'll definitely look into that.

@Jay Hinrichs. Thank you. Very insightful! I'm thinking I'll contact a bunch of contractors before I close on anything to make sure I have a good number of them willing to bid on a small project. I was already planning on ordering the finish materials myself and paying the GC in short installments as they go leaving a good chunk unpaid until it was all finished. I also wanted to give them a bonus if they finished on time and a penalty if they went over. I'd feel a little more comfortable with these arrangements. I am still considering partnering or finding a mentor (paid or unpaid) at least for my first since it is risky. Either way I'll make sure I have enough reserves to cover me if the deal doesn't work out like planned. 

@Jay Hinrichs, I truly appreciate the honesty. I do have some experience managing a commercial contractor locally (building out a Restaurant) and doing my own cosmetic rehabbing on my house. I know this isn't the most applicable experience but it's a little better than nothing. 

What parts of the BRRRR strategy would you say are the most concerning for a new out of state investor? To me it's the purchase and rehab for which I'd have to rely on photos/videos and other people.

@April Littleton thanks for the advice. I actually have a realtor in my area and I've had notifications for months in my area and even in Washington which is close to me. It's hard to get a property to cash flow positively in my area and nearly impossible to BRRRR. It would pain me to not be able to use the BRRRR strategy because I believe it's superior to most others.

Another reason I want to do out of state is that I don't want to have to physically leave my family to check on properties and rehabs. I want to be available to help my wife with the little ones at home. I'd rather spend twice as much time managing from my laptop than having to leave the house constantly leaving my wife alone with 4 screaming children. Lol. To each his own but I still think for us personally that out of state is a better option. Thank goodness there's an excellent book by David Greene which tells you exactly how to invest out of state or I'd never feel comfortable doing it.

Prices are much higher in my area. I feel that spending 60k out of state is less risky than spending 150k in my area. Also, I don't have 150k.