All Forum Posts by: Account Closed

@James Wise Thanks for the honest response, I really appreciate that and I agree. 

While I've only been on BP for a month or so and my experience has been very positive but there are way too many people trying to sell other folks on the idea of out of state investing as a way to build wealth. While I'm sure it can work in certain situations, it seems best to invest locally if you can. 

Yes, @Kathy Villagomez and @Michael Rheaume, this is a topic that I don't hear enough about. If anyone is close with the BP guys, drop them a line and see if they can dive into this more. 

Folks like us in expensive, high value areas; is it better to get in where we can locally or look out of state? As Serge Shukhat talks about, you need a competitive advantage. As an example, I know people in Cleveland but I don't really have a competitive advantage there. But I do here. Even though it is more expensive, I feel more confident about the market here and more importantly, the people. So as @Brian Pleshek pointed out, I (we) could spread our risk over multiple properties out of state, but as a whole it seems to be more risky than 1 or 2 higher end/expensive properties in California because we don't have a competitive advantage there. 

Thoughts? 

@Chris Mason yes, that was directed at you! Thanks!

Sure, I get most if that. Maybe it is a quality vs quantity situation. Although the market here seems to be plateauing, there really are no signs of a bubble bursting as there are no signs that it is a "bubble" at all. And rents will continue to climb here. They may not in Cleveland. 

The main thing I'm looking for insight here is whether the hassle and risk of investing out of state is worth it to a beginning investor like myself. Or should I stay in the market I know very well and have an advantage in is a better move even though the "get in" cost is a bit higher. 

Help me with a dilemma BP...

I live in Oakland California where the market is the highest its ever been and I want to get started in REI. I have come up with 2 options and need some advice as to which one is smarter.

Option 1: Buy a single family home in Vallejo CA (about 30 minutes away, close to Napa) for around 270K. Rehab a little and rent it out. Rents are going for 1600-2100. The market there is hot and it looks like it should appreciate very very well. I know the market well here and most importantly I know what people are looking for, me being one of them.

Option 2: Buy a single family or multi unit home in Cleveland for around 80K. Rehab a little and rent out. Rents are typically 1000 for SFR's and 700-900 per unit in MFR's. I have some boots on the ground there that know the area well, neighborhood to neighborhood. Lesser appreciation probably, but a lower price to get in. Maybe buy up a couple of these over the next few years.

Both options cash flow enough but one has more appreciation potential in a market I know. The other is out of state, cash flows maybe a little more with less appreciation but has a lower "get in" price. 

Thoughts??

Thanks!

Help me with a dilemma BP...

I live in Oakland California where the market is the highest its ever been and I want to get started in REI. I have come up with 2 options and need some advice as to which one is smarter.

Option 1: Buy a single family home in Vallejo CA (about 30 minutes away, close to Napa) for around 270K. Rehab a little and rent it out. Rents are going for 1600-2100. The market there is hot and it looks like it should appreciate very very well. I know the market well here and most importantly I know what people are looking for, me being one of them.

Option 2: Buy a single family or multi unit home in Cleveland for around 80K. Rehab a little and rent out. Rents are typically 1000 for SFR's and 700-900 per unit in MFR's. I have some boots on the ground there that know the area well, neighborhood to neighborhood. Lesser appreciation probably, but a lower price to get in. Maybe buy up a couple of these over the next few years.

Both options cash flow enough but one has more appreciation potential in a market I know. The other is out of state, cash flows maybe a little more with less appreciation but has a lower "get in" price. 

Thoughts??

Thanks!

@John Horner Thanks so much for that very honest and straightforward answer. I expense a TON of stuff on my taxes so yeah this time around I'll keep it to minimum. The reason why is that up until I got into BP and the REI world I didn't think we'd be able to buy a home here in the Bay anyway so I figured it'd be better to keep more cash liquid than beef up my income on my return. But now that I want to start in REI by getting a BRRRR property in Vallejo, things are different.

Being that you are in my area, could I PM you with some other questions?

Thanks again!

Hey BP,

My wife and I are self-employed and have a nice savings but because of our taxes (we expense A LOT of things) we're having trouble with conventional loans so we started looking at Private Money Lenders.

We're looking to buy our first investment property... a duplex, live in one unit, rehab the other then rent that one out while we rehab our unit. Does it make sense to use a Private Money Loan to purchase the property and then refi with a long term conventional loan after 1 year?

Thanks!

Martin

Hey BP,

My wife and I are self-employed and have a nice savings but because of our taxes (we expense A LOT of things) we're having trouble with conventional loans so we started looking at Private Money Lenders. 

We're looking to buy our first investment property... a duplex, live in one unit, rehab the other then rent that one out while we rehab our unit. Does it make sense to use a Private Money Loan to purchase the property and then refi with a long term conventional loan after 1 year?

Thanks!

Martin 

Thanks!!