All Forum Posts by: Account Closed

Hey @Aaron Mercado,

It will depend on what you're wanting in life and when you want it. I'm not too familiar with Condo prices in California, but lenders typically prefer a good debt to income ratio, so you should talk with a financial advisor if you are interested in doing both at the same time.
I'm assuming that you're most likely going to have to choose one or the other, and if you are looking to invest out of state, I would start by researching areas you think have potential.

Look at DOM, price, job growth, population growth, rent, number of rentals, etc.

Once you decided on a place, reach out to an agent or someone with knowledge of the area to give you an idea if the area matches your goals.

Good luck!

Hey @Issac Chang,

It's up to how much risk you're willing to take. Out-of-state can be risky in the beginning, as you don't have the proper team in place. 

It's one of the main reasons a lot of investors do not make their first deal. It's trust in others. 

It's hard to trust somebody when you don't know anything and you can't really keep track of them well. Eventually, you'll be wanting to be hands-off, so the ability to weed out the bad apples in the bunch and maintaining the relationships of the great ones is a crucial skill to have.

Good luck!

Hey @Hannah Noble,

House hacking is more manageable and can give you the experience of managing a property. You only be working one tenant, but since you're next door, make sure it's the right tenant, as you'll be the one in charge of repairs.

You'll experience less cash flow in higher-end markets, so it will need to align with your overall goals in REI if you are looking to invest in certain areas.

Good Luck!

Hey Sarah,

Glad you're starting to look into RE Investing.

A good place to start would be looking to build your team. Deal Finder/Boots on the ground, Property Manager, Lender, and Contractor. 

Turnkey will help you start off and gain some experience, but you'll be competing with other investors and home buyers looking at the same thing. If you learn to rehab, you'll be able to increase your chances for better returns and open up your options.

Good luck!

Hey @Paul Latendresse,

OOS investing can be just as efficient as in-state investing, as long as you have the right team in systems in place. 

Vetting a team and making sure you have the right people to trust is the hardest part. Once you have it, the process is smoother each time.

Good Luck!

Hey @Denise Curtis,

Just like what everyone else said, Capitol Hill is still a work in progress. It's similar to NE OKC, where you do have government money being poured into there for development, but will take years before it gets better.

If you are interested in SW OKC, I would recommend areas underneath 59th St. It's starting to develop, as the Amazon Facility opened up near there, as well as the college being close by.

Good luck!

Hey @Raul Carrillo,

It's good to be looking towards the future. Always look at the goal, what you are wanting from real estate, is it the best option, will I be able to dedicate myself to it.

REI is a part-time job, maybe even a full-time job in the beginning. You'll be wanting to set up your core team, deal finder, lender, contractor, etc.

Remember to live your present life as well, as real estate can be taxing. You'll make sacrifices with your time and money, which you are doing right now spending hours learning and saving money. It's a long term game, so your gains will be realized in the future.

Good luck!

Hey @Sean Winters,

It's like what @Paul Shannon said. If you are wanting to run fast, using OPM is one of the best ways to reach your goal. 

Most people playing this game do not have $200k saved up and a high paying job, so you have a strong advantage. You might be able to buy them outright without leverage and be able to save up to buy the next one.

It will also depend on the type of houses and the work you are willing to put into it. Turnkey can range from $100-$200 in cash flow, when leveraging debt. You'll also realize higher returns in lower-class neighborhoods, but bear the risk of theft, damages, etc.

The more value you bring to a community, the more return you will receive. Lower-class neighborhoods need good landlords, and distressed homes need to be rehabbed.

To do the math:

Goal: $5k/month                                              Avg Income/Door: $150                               Total Units Needed: 34

Home Price: $50k-$100k                                   25% Down: $10k-$20k                                   

Year 1: 4 doors (Assuming most first time investors will want experience, before jumping all in.) = $600/month

Year 2: 8 doors = $1.2kmonth

Year 3: 10 doors = $1.5k/month

Year 4: 12 doors = $1.8k/month

Total monthly income = $5,100/month

Real Estate is a long game, where you don't realize actual returns until later on. Along the way you'll hedge against inflation with the appreciation of the home as well.

Once it's paid off, the home's monthly income will skyrocket from $5.1k/month to $27.2k/month ($800 rent/unit)

Good luck!  

@Paul Shannon

Hey @Richard Lutz,

In general:

It's a growing city with a lot of old homes. If you're into rehab that would be a huge plus in this market.

We tend to be a linear market, meaning that we experience low appreciation, but we don't get hit as hard during recessions.

It's one of the largest cities in sqft, we're a driving city, lots of construction, good people.

Good luck!

Hey @Sameer A.

Welcome to BP!

It's great you're starting to look into real estate. It's all about understanding your goals and what you're wanting from investing. Are you hoping to go fast? Are you looking to have stability? Are you wanting to invest as a career?

To answer some of your questions:

1) I do believe finding your first deal in your area is beneficial, as you are able to understand the process and maybe practice the idea of managing the property yourself if you're interested. Out-of-state can have better returns, that's why a lot of people look towards the Midwest and areas such as Phoenix and Dallas. I'm biased for Oklahoma City, where we are known to be a linear market with steady growth, but low appreciation. You'll want to pick an area that aligns with your goals.

You're already ahead of the curve looking at hundreds of deals and even putting offers in Phoenix. It will be easier once you get that first deal out-of-state and have the right people and the right system in place.   

2) It depends. You have a long history with them, but if the numbers are hurting your business, then it might be time to negotiate with them or move on to another. I would recommend staying with them on your first deal to see how it goes.

3) Not too familiar with industrial real estate, but I do think you should consider commercial real estate. Apartments can be manageable with the right people, as well as storage units. I'm not a huge fan of office buildings, as I think we're slowly moving towards the option for remote work.

Good luck!