All Forum Posts by: Josh Feldman

@Matt R. Thanks for the reply. We will make sure to do our due diligence!

Hi team,

My partner and I are looking to make our first deal. Our target market is about 4 hours away. We have a realtor and contractor out there, and are in the process of hiring a property manager who will serve as our boots on the ground. We are looking to get pre-approval (for conventional financing) so we can pull the trigger quickly if a good deal comes along. How exactly does the process work if we do not yet have an LLC? Would a lender look at each of our financial and credit history, or as a combined entity? Does it make more sense to create an LLC first? And if we are investing at a distance, can our lender be local to us or does it have to be local to our investment? Any and all advice or suggestions are greatly appreciated!!

Thanks in advance.

@Account Closed thank you for the input! We were thinking closer to Binghamton, West side area. Will definitely take the renovation idea into consideration.

@Bob Prisco thanks for the tip. Did you begin in Cleveland or were you investing elsewhere first? We are unfamiliar with the market out there but are very familiar with the Binghamton area. How difficult is it to manage your business from a different state? Any other advice or tips would be appreciated!

I have heard a lot of great things about Cleveland and how the area is booming. That would be of interest to me down the line once we establish our business and our workflow.

@David London thanks for the reply. I actually went to Stony Brook myself, and I currently am out in Nassau County. The Stony Brook market is good but is becoming expensive much like the rest of long Island. You should consider looking at the Hofstra area for student rentals, above my price point but cheaper than Stony Brook. Towns like Hempstead and Uniondale are on the upswing regarding property value.

@Stephanie Jacobson that's really great advice! I will definitely run it by my partner that you recommend a PM. Could you recommend a company that you have used in the past?

@Raquel Knoell we are still deciding what we want to do with that. Our thought is that for the first property we likely will not need a PM if we are just collecting rents from the tenants and have a reliable handy man in the area to handle any small maintenance calls. We hope to find a property that doesn't need much work since it is our first one, and we really want to learn the ropes and take our time with it to minimize the number of mistakes we make. We are open to recommendations for property management in the area but haven't talked to any companies yet.

@Nick Rutkowski great point! Will make sure to get the best bang for our buck.

@Kerry Baird Thanks for the reply. What if the cash on cash return on some of these properties is close to 30%, and cash flow after all expenses accounted for is still close to $700 per house per month? I understand the risk about an exit strategy as well, when we look to sell there will be no profit made if the house does not appreciate at all. At what point does cash flow outweigh appreciation, if ever?

@William Lidell thank you for the reply. This is actually the area we are looking to invest. I have been thinking about building a team to start our investing up near Binghamton; my partner and I have been analyzing tons of properties (all that I've been able to find on Realtor.com, etc) and quite a few have produced fantastic cashflow/cash on cash ROI numbers. My partner wants to get something more turn-key for our first investment, but I am more interested in something that needs a little more work, implement BRRRR, and use the cash out refi for our next investment (he wants to rely solely on our cash flow for subsequent investments). I am concerned that the cash flow will not be as efficient as a BRRRR project. Again, open to advice or suggestions, and would be happy to discuss further about investing in Binghamton if you have a chance.

Thank you so much