All Forum Posts by: Kurt Pauley

@Jordan Moorhead I tend to disagree that cash flow is the main reason for buy and hold. Bill Syrios (podcast 140) who owns 700+ rentals states the opposite. Cash flow is the cherry on top and the real money is the appreciation and equity that comes with having tenants pay off your mortgage.  This is the case if you're truly buy and hold and looking toward the long term.  It is about the appreciation over a large chunk of time and not short term.  IMO

@Mike Russo Hey Mike, I have a bit of a different take on this. I think the answer to the question depends on your strategy. If you're a buy and hold investor and plan to hold for the long run I would say you could still make purchases if the deal is good enough and you'll come out way ahead. I push hard and hustle to find deals in any way I can, ideally off market, and I look for something that I can be all-in at 60%-70% of the ARV. In my opinion, if you find a good deal there is no reason not to buy if you're holding for the long run. If you're flipping it's a different story.

@Jeff Petsche Hey Jeff, I live in Minneapolis and invest in Omaha. If I were you and looking outside of your market I would start with identifying some mid-level markets around and then asking yourself if you know anyone in that market. I think it is ideal to have a strong team in whichever market you invest in and it will be much easier if you know at least 1 person.  If you don't know anyone you just have to start networking with folks and vigilantly researching the market.  This would include researching property management companies and asking around for good companies.  I think a good property management firm will be crucial. If you need any boots on the ground in Omaha or Minneapolis let me know.  Happy to help. 

SOLD

Freshly remodeled SFR in the Omaha suburb of Bellevue. Beautiful interior, new roof, new A/C, new furnance, new kitchen, new bathroom. This place is as turn-key as they come.

Please call with any questions - 402-681-8622

$67,000

Rent: $975/mo

Taxes: $159/mo

Need contractor that can do a kitchen remodel, drywall, painting, etc. Must be licensed and able to pull permits.

Thanks for the help and recommendations! 

Some people must invest out of the twin cities because they want to still invest in a metro market but not in one that could potentially have high cost barriers to entry. 

For example, I invest in Omaha because it is much easier to find good deals at this point and is a bit less competitive. Small fish like me find it hard to be competitive in the twin cities market.

Other, full-time and more experiences investors and syndicators are drawn to Minneapolis because it is one of the best housing markets in the country in terms of growth or appreciation. These investors have the ability to pay higher acquisition costs but are attracted to the overall growth of the market and appreciation.  For me, I know Omaha will not do as well long term in regard to appreciation but it is still a solid market in my opinion with good cash flow. 

@Marcus Durant  Good luck in your endeavors and most importantly have fun. 

@Gabriel Cashman

Hey Gabriel,

I got going in my efforts to gain financial freedom about 1 year ago. I have done 4 deals so far in Omaha, Neb while living in Minneapolis. I am working on getting some properties in Minneapolis now.  With 100,000 you could do some big stuff!! Don't pigeon hole yourself to thinking that you need 25% down for an investment property.  There are lots of ways to get in a property with little to low money down and it is all up to your creativity when it comes to finance. If there is a will there is a way. Let me know if you want to get coffee sometime. It's sometimes hard to find like minded people when it comes to real estate investing at a young age. 

Kurt 

@Patrick Hein Hey Patrick, Welcome to BP. I live in Minneapolis but invest in Omaha. I have a few jobs coming up but will also need the services of a electrician from time to time. I will send you a colleague request. 

Good luck!!

Kurt