All Forum Posts by: Leila Moussavi

@Kathleen Osborne

Thanks so much for your reply and suggestions.

I'm a big reader, so I'll definitely enjoy reading your book recommendation. I'm considering interning for a property manager this summer. What would be the best internship opportunity that would allow me to learn the most about investing, make the most networking connections, and be applicable to my long-term goals of owning buy and hold properties? Also, how long would I have to hold a WW2 to qualify for an FHA loan with a 3% down house hack?

Ideally I would love to invest locally, but Riverside/California in general is a little too expensive for me and I don't appreciate California's treatment of landlords.

@Malcomb Stapel

I'm reading a lot of mixed opinions about investing out of state vs in state. Living in Riverside, I can understand why it's a good place to invest, but it's just a little out of my price range right now I think and from my research there are many other states that are more landlord friendly than here. I'm still in the process of researching markets, so I'm very open to investigating suggestions. I'm interested in Kansas City, MO. It seems to be pretty affordable and has good projections and history of job growth and population growth. The weather isn't too extreme, and from others' posts about potential markets, I think it could be worth looking more into. Thoughts?

@John Clark

From your perspective, what makes OOS investing nearly impossible for rookies? From my (very limited) knowledge, it seems like you would use the same principles whether you are investing in or out of state. Out of state obviously has the downside of distance - not being able to conveniently meet your team face-to-face or see properties/neighborhoods in person. However, it seems like there are tons of resources vetting neighborhoods/zip codes online, not to mention insight from BiggerPockets community members who are invested in the same area.

Would love to hear some insight. Thank you!

@Joshua Messinger

Thanks for the informative reply Joshua! Quick question regarding your advice that investing OOS would be hard because I don't have systems set up for operations, maintenance, cleaning, acquisition, etc: I don't have these system set up in California, either. I would have to establish these systems in wherever I choose to invest, therefore I'm thinking why not start with OOS, if I'm going to have to set up these systems for properties in-state, anyways? What are you thoughts about this line of thinking?

Thank you!

Hi BiggerPockets!

My name is Leila, and I'm a 19 year old college student looking to investing in a buy and hold property out of state. I would eventually like to become financially free by 30 years old, living off of rental income.

I am unable to quality for a conventional loan, but do have enough saved for a small down payment and some potential investors (family, friends) who would be willing to work some sort of deal out with me so I have the funding to purchase a property. Also they could be potential co-signers on a loan. I may even have a potential partner, as well. I am open to creative financing.

My game plan is to create a set list of criteria for properties, then research markets, then find an agent and analyze properties from there until I find one that fits my standards. So far my criteria looks like this:

• Neighborhood - B class

• Property size (square feet)

• SFH: 1100-1200
• Bed/Bath: SFH: 3 bed 2 bath
• MFH: ??
• Bed/bath: MFH: 1, 2, or 3 bed units? Bath? What's ideal?

• Lot size

• SFH: 6000 with 2 car garage
• MFH: What's a normal lot size?
  

• Property condition - ??

• Number of units - SFH or MFH (2, 3, or 4)

• Cap rate - ??

• Cash flow - 8-12% return

• Appreciation potential - ??

A. How would I determine if I want to invest in a MFH or SFH out of state? Does it depend on the market/location? MFH seems good for scaling and less risky as far as vacancies. I'm leaning towards MFH.

B. What criteria would you suggest I edit/add into my list above, keeping in mind my experience level and funding?

C. Any other extraneous advice from out of state investors would be more than helpful.

Thank you!

Hi BiggerPockets!

My name is Leila, and I'm a 19 year old college student looking to investing in a buy and hold property out of state. I would eventually like to become financially free by 30 years old, living off of rental income.

I am unable to quality for a conventional loan, but do have enough saved for a small down payment and some potential investors (family, friends) who would be willing to work some sort of deal out with me so I have the funding to purchase a property. Also they could be potential co-signers on a loan. I may even have a potential partner, as well. I am open to creative financing.

My game plan is to create a set list of criteria for properties, then research markets, then find an agent and analyze properties from there until I find one that fits my standards. So far my criteria looks like this:

• Neighborhood - B class

• Property size (square feet)

• SFH: 1100-1200
• Bed/Bath: SFH: 3 bed 2 bath
• MFH: ??
• Bed/bath: MFH: 1, 2, or 3 bed units? Bath? What's ideal?

• Lot size

• SFH: 6000 with 2 car garage
• MFH: What's a normal lot size?
  

• Property condition - ??

• Number of units - SFH or MFH (2, 3, or 4)

• Cap rate - ??

• Cash flow - 8-12% return

• Appreciation potential - ??

A. How would I determine if I want to invest in a MFH or SFH out of state? Does it depend on the market/location? MFH seems good for scaling and less risky as far as vacancies. I'm leaning towards MFH.

B. What criteria would you suggest I edit/add into my list above, keeping in mind my experience level and funding?

C. Any other extraneous advice from out of state investors would be more than helpful.

Thank you!

@Chris Clothier

Wow! Thank you for such an informative, insightful reply. I definitely took notes on your advice and will be implementing it into my gameplan. I'm torn between investing in Riverside or pursuing out-of-state investing. California doesn't seem to be very landlord friendly and the prices here are insane. I do like the possibility of being located near my investments, though.

From what I've seen, out of state (midwest region) has lower prices (although lower rents, too) and seems to be more landlord friendly. Investing remotely is daunting, however. I'll talk to local investors and see what their perspectives are! Thanks again for the reply.

@Steve Donovan

I've been reading/listening on BiggerPockets, and have noticed most all people say the best way to find a trustworthy and reliable team is by asking investors buying in the same area as you for references. Do you have experiences finding a trustworthy this way?

If I only have one property under a property manager, how would I ensure that they give my property the proper attention/time, when I'm only a small percentage of their portfolio?

@Malcomb Stapel

Thanks for the reply! Good point on the importance of defining the property condition. For my first deal, I would like to stay away from value add because it adds more pieces to the puzzle, and financing may already be a little tricky as is. I'd like to establish a trustworthy team on the ground with a few properties, then perhaps do value add after I've gained some experience. Thoughts on this strategy?

Hi BiggerPockets!

My name is Leila, and I'm a 19 year old college student looking to investing in a buy and hold property out of state. I would eventually like to become financially free by 30 years old, living off of rental income.

I am unable to quality for a conventional loan, but do have enough saved for a small down payment and some potential investors (family, friends) who would be willing to work some sort of deal out with me so I have the funding to purchase a property. Also they could be potential co-signers on a loan. I may even have a potential partner, as well. I am open to creative financing.

My game plan is to create a set list of criteria for properties, then research markets, then find an agent and analyze properties from there until I find one that fits my standards. So far my criteria looks like this:

• Neighborhood - B class

• Property size (square feet)

• SFH: 1100-1200
• Bed/Bath: SFH: 3 bed 2 bath
• MFH: ??
• Bed/bath: MFH: 1, 2, or 3 bed units? Bath? What's ideal?

• Lot size

• SFH: 6000 with 2 car garage
• MFH: What's a normal lot size?
  

• Property condition - ??

• Number of units - SFH or MFH (2, 3, or 4)

• Cap rate - ??

• Cash flow - 8-12% return

• Appreciation potential - ??

A. How would I determine if I want to invest in a MFH or SFH out of state? Does it depend on the market/location? MFH seems good for scaling and less risky as far as vacancies. I'm leaning towards MFH.

B. What criteria would you suggest I edit/add into my list above, keeping in mind my experience level and funding?

C. Any other extraneous advice from out of state investors would be more than helpful.

Thank you!