All Forum Posts by: Kendell Powell

@Kendell Powell If you understand the basics of a rehab and even completed a few projects you have an advantage. Some people are afraid to swing hammers. That knowledge is powerful. Just because you personally don't own RE doesn't mean you bring no value. When I started out I owned 1 rental and a primary. My value was being a handyman for other investors (swinging hammers). I learned how, where, and what kind of investor I wanted to become. I dabbled in PM and dealt with a Sec8 tenants. My wife and I cleaned out eviction properties. I created a buy [box] without buying more doors. You could do all of this at half my age. 

I had no family interested in REI when I started out. After I found some success I convinced my Mom to buy a bank owned property. She ended up flipping, renting it for 2 years, and then sold it for a 30% profit. That didn't include 24 months of rental cash-flow. REI takes time, patience, and money regardless of your age. Cheers.

@Kendell Powell Hi Kendall. For now I’d advise you to save your money and keep studying books and learning more about real estate. Learn as much as you can about your market and the potential area(s) you may want to buy that duplex in.

Personally I scan the local MLS each night in my target neighborhoods to be familiar with any new properties that may come on the market that I might be interested in. On the site I search on the new listings are first so it only takes me about 7 minutes to cruise through about 12 neighborhoods.

I also have a few people who have good connections that keep me informed if they hear of any good deals. Your cousin might have some good connections.

If there are any real estate meet ups or coffee hours in your area I’d recommend you start trying to attend some of those to meet some other people and get networking.

Then once you’ve got more time on the job and more money you’ll be in a better position to make a solid offer on that duplex when you find one that makes financial sense to you.

Hey Kendell,

Great to see another younger professional in this space. 45k is definitely a good start to start investing in rentals or BRRRRs depending on the area. It's good to be an action taker and have some sense of urgency, given most people who "want to invest" actually never even get their first property. As others have mentioned, it's also important to not rush into deals, and conduct due diligence! If you put in the input to search for properties and make offers, you will eventually secure a deal whether that's in 1 week, 1 month or 5 months.

Agree with @Jaron Walling - forget what a stranger on the internet that, in my case, lives several states away says and ask questions of the two guys that you know that have 165 combined units in your market. 

Now that I've told you to ignore my nonsense, here's my take. 

Live in flip or house hack is always the best first step as I see it. Find a place where you want to live. That's all the location study and analysis you need. And your downside risk is protected because it's a house for you to live in - it's an investment to remove your biggest expense. And if something goes sideways, you're just paying a mortgage/rent expense that month like everyone else. You also have more financing options due to being the owner occupant plus the option to sell after 2 years with a tax free gain if you are going the live in flip route.

@Kendell Powell The best advice anyone can give you is to slow down and take in the scenery. It's hard to do as a motivated 18 y/o but it will actually help you! 

"He owns 150 rental units and my Dad owns 15 rental units." - Is your cousin and dad buying, selling, or holding properties right now and why? What strategies did they use to grow a portfolio? Finish reading that book then share your findings with them. Take advantage of these connections, learn more, and then take action. You have no obligation to rush into a bad deal.