All Forum Posts by: Mark Shaffar

@Mindy Jensenyou sound like someone who experienced that polar vortex thing a couple winters back:)

 Hi Trevor I feel like I can pick on you because we know each other:) I was in Door county last weekend and there are tons of cars on the road there with IL plates. Kind of unique in that it seems to be a blend of "up north" woodsiness, cutsie cottageness, and waterfront recreation. That's of course no helpful info on the cash flow potential of rentals there but Wisconsin has generally pretty low home prices and is fairly popular with Illinois tourists. There are tons of rehabbed 50 and 60k houses available in good neighborhoods renting for $850-$1100 range in Milwaukee.

@Eric La Pratt

 you could also listen to @Brie Schmidt's recent podcast #132:) She's a Chicago investor investing in Milwaukee currently. Regarding lowball offers, there's a saying on the podcasts that if the offer doesn't embarrass you then it was too high. Regarding what to invest in, you'll find tons of opinions on BP, most hinge on whether you are going for cash flow or appreciation or some combination of the two. Good luck!

@Charlie WinterWelcome to BP! I just bought a rental through my self-directed IRA. It was fairly easy.

@Max Maloneypeople do cash offers because sellers will sometimes take a lower price because they prefer the ease and timeliness of cash transactions, another reason may be that they want to avoid the risk of debt or they are simply maxed out on debt. One nice option is to buy with cash and then refi later to get most of your cash out and put it in the next one. Then you get good prices and leverage. 

Lots of people buy out of state primarily for cash flow. It is doable but you will see lots of discussion on BP about the risks. Like all real estate investing you need to do due diligence on the neighborhoods you are investing in, the people you are working with, and the numbers on the deals themselves. Done well, you can lower risks and improve your chances of making a good investment.

Good Luck!

@David W.Welcome to BP!

@James B.I'm  a Midwest guy but moving from Monterey, CA to Indiana?:) 

@Walker HinshawThere are a lot of factors that affect whether or not a city is good to invest in. What people are looking for in a rental are low vacancies (higher end tenants), high rent to price (>2%) for cash flow, and a good shot at appreciation (nice neighborhoods in growing cities). These are also unicorns, so BP is full of theories on what to prioritize. Some like me lean towards cash flow which is a lot easier to find in the Midwest because it seems to depend least on the illogic of guessing where the market is going- much luck Warren Buffet investing in value stocks. I guess illogic is a harsh word, but I do think there is more of a speculative play involved with betting on appreciation - akin to betting on a hot new tech stock. In other words, a cash flowing rental in a solid neighborhood has a good chance of being a good invest regardless of where the market is 5 years from now. Having said that, as @Matt R. pointed out, a Milwaukee investor like @Mehran K.

 might have made more money buying an undervalued house in CA thanks to strong appreciation than he would have made in Milwaukee with cash flow and mild appreciation. But we're just speculating, and he wouldn't have met @Dawn Anastasi

 which would be a shame:)

@Charles WorthInteresting point

I think it is easy to misread the article. The populations of many of those cities are growing, but Americans are leaving. Manhattan is definitely not a 2% city and has a very healthy economy. Immigrants are moving into many of these cities faster than Americans are moving out. 

Daniel you are doing a fantastic job and I hope our convo was the opposite of frog kissing:) If only every major city in the world had a Daniel Ryu and Ben Hauser!