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All Forum Posts by: Khayla McCoy

Khayla McCoy has started 1 posts and replied 7 times.

Post: Need advice regarding which areas to target for out of state investing

Khayla McCoy
Pro Member
Posted
  • Posts 7
  • Votes 2

Hi Friends - @Muhammad Rehan and @Charles Manabat@Charles Manabat@Charles Manabat@Charles Manabat

I'm not a seasoned investor. I'm scouting my first rental property, but in similar shoes as yours in terms of looking outside of my market. For context, I'm based in Atlanta. It's not the most expensive market, but it's also not the one that makes the most sense for my goals and desired investment. One of my goals is cash flow. The framework I defined for myself may not be helpful for you, but I thought I'd share it anyway. 

Outside of the kry metrics one needs to evaluate when investigating any market, I also created a list of priorities and nice-to-haves. For example:
1. If I'm investing out of market, I want to be sure the location isn't a pain to get to. I still want to be able to see the property in person before I commit to it. For myself, I decided to look at markets within a 4-hour drive from Atlanta. Again, this will be my first investment, so I want to consider the things that would make me feel more confident. 

2. I know a declining population isn't ALWAYS a reason to stray away from a market, but for myself, I decided I didn't want to invest in a market that had population growth lower than 0. 

3. Crime was also something I looked at. When looking at violent and property crime rates, I cut out some markets because I felt their crime rates were higher than I was comfortable with. Even if those markets were within my price point and had increasing population growth, they still didn't make the cut if the crime was too high. 

4. The regulatory environment is also a key factor for me as a first-time investor. 

These guardrails have been helpful so far in my research. I can see these criteria shifting significantly as I become a more seasoned investor, but for now, they're helping me feel less overwhelmed about my decision-making. There may be some criteria that apply to your situation as well. For example - where might you already have an established network? Having the standard analysis is excellent, but having additional criteria that are more personal might also become helpful during this process. 

Post: Scaling Up from Multifamily

Khayla McCoy
Pro Member
Posted
  • Posts 7
  • Votes 2

@John Cantey. Hey there! There's definitely a few programs out there. I haven't taken any myself, so unfortunately I don't have too much feedback here. 

Post: Scaling Up from Multifamily

Khayla McCoy
Pro Member
Posted
  • Posts 7
  • Votes 2

That provides so much context. Thanks again for your post! 

Post: Scaling Up from Multifamily

Khayla McCoy
Pro Member
Posted
  • Posts 7
  • Votes 2

Got it. Thanks so much for clarifying! Was there any concern as far as experience or lack there of? Did the bank/lender consider your experience managing other assets in their decision to grant a commercial loan on the deal mentioned above? 

Post: Scaling Up from Multifamily

Khayla McCoy
Pro Member
Posted
  • Posts 7
  • Votes 2

Hey there!

So I actually have found out a few things. It seems there's private lending, hard money, and a few other options out there if you're attempting to finance a larger asset. All of them of course come with pros and cons.

Post: Scaling Up from Multifamily

Khayla McCoy
Pro Member
Posted
  • Posts 7
  • Votes 2

Hey Brandon, 

Thanks for your reply! Congrats on that acquisition. It sounds totally easy! If you don't mind me asking, what conversations did you have with your lender? Was this your first 'commercial' property? Did your previous experience in smaller multi help you obtain the loan? Being able to obtain the loan is my point of concern.

Post: Scaling Up from Multifamily

Khayla McCoy
Pro Member
Posted
  • Posts 7
  • Votes 2

Hi Everyone :-),

I hope everyone is staying safe and well. Happy new year! I'm a newbie investor interested in multifamily. I always hear about how easy it is to 'scale up' in multifamily. I would love to know how any of you have done it in the past. From my understanding (and I may not have all the info - still researching this), in order to obtain financing for properties of 5+ units, one would need to have a net worth greater than or equal to the amount of the loan being requested. Any ideas or previous experience is welcomed. I'm just curious about what scaling up could look like and how others are making this work for their unique situations. :-) All the best!