All Forum Posts by: Lucas Gallaher

what I would do to decide if brrr method is the way to go-

Assess the cost of necessary updates and improvements and compare them to the potential increase in your home's value. Prioritize high-ROI renovations such as kitchen and bathroom upgrades, flooring, and enhancing curb appeal. Ensure that the updates are of high quality yet within budget to maximize the increase in value.

When it comes to refinancing, after completing the renovations, you can refinance your home to access the created equity. Ensure that the new loan terms are favorable and that the equity extracted will significantly contribute to your next investment. Finally, obtain a professional appraisal post-renovation to accurately determine the new value of your home.

(good luck)

Quote from @James Carlson:

@Yusef Wakeel

General thoughts ... I normally tell my investor/house-hacking clients here in Colorado Springs and Denver to buy as soon and as frequently as they can. Time in market is the biggest benefit on your side, so the sooner you buy, the longer you'll have that property (and also, the sooner you can buy #2).

This is definitely a perspective a lot of people tend to steer away from, as they are scared/ think that we are at the peak of market costs and interest rates. I respect this though, this is a great way to put it, and I would advise the same thing for others as well. Slow down to speed up-

Quote from @Devan Dorzok:

Hi everyone, I was wondering if anyone has some common mistakes to avoid when first starting out in long term multi-family rentals. I am currently looking at a multi-family foreclosure that needs about 60K in repairs, the numbers look good in the rental estimate calculator. Any suggestions on what things to look out for, and or questions to ask contractors and inspectors would be greatly appreciated.

Thank you!

Even if the numbers look good now, ensure the local rental market can support your projected rents. Research vacancy rates, average rent prices, and future development plans in the area.
good luck!

Quote from @Drew Sygit:

@Shiwei Qu investors are flocking to the Midwest cites due to lower entry costs.

You can't compare Columbus, OH to Detroit, MI as two different approaches. One is cashflow, the other appreciation.

 I agree,

Columbus has a diversified economy, and a robust job market which makes Columbus an attractive option for investors seeking long-term capital gains. 

Now in Detroit you will see affordable property prices and high rental yields. Investors in Detroit can acquire properties at lower costs and generate significant rental income, providing consistent cash flow.

Quote from @Jonathan Greene:

Your best bet is to learn all you can and earn all you can over your first 2-3 years of college. If you've saved enough, trying to house hack a local 2-family in your junior or senior year (maybe with a parent as a cosigner) would be ideal because you can learn landlording and experiment with your friends as tenants. It's not easy, but it's a good first option to be hands on. Investing into something passive isn't going to teach you anything at your age.

Go to or start a real estate investing club at your school as well.

 ”Go to or start a real estate investing club at your school as well.“

I agree- networking is going to be very helpful in the long run-

So being that you seem set on going to college here's my advice,

3 big things

while in college you can only do so much
work part-time or intern with real estate agencies, property management companies, or real estate investors, which some colleges per degree may require an internship anyway.

network
join campus real estate clubs and national organizations like the National Association of Realtors (NAR) or local real estate investment groups. Also, you should be utilizing social media, where it seems as if you already are.

finances

save your money and build your credit

Good Luck-

Congratulations!

I am not completely positive where you plan on investing in New Jersey, but here is my thoughts. 

With a smaller amount of capital, investing in certain high-demand areas in New Jersey might be challenging due to the higher property prices. Something you can do is, look into areas that are experiencing growth but are still affordable. These markets often offer better entry points and potential for appreciation. Or even attempt to find opportunities in other states, contacting a local real estate agent to look around. Find somewhere property prices are lower, and rental yields are higher. It’s worth researching markets that are known for being investor-friendly.

You're in a great place for investing, though I think you should try contacting local real estate agents or even look specifically for auctions/foreclosures. Establishing relationships with local real estate agents who specialize in investment properties can be incredibly beneficial. They often have access to listings before they hit the market and can provide insights on upcoming opportunities.

hope this helps-