All Forum Posts by: Melissa Justice

@Bobby Johnson,

Hey! Congrats on taking the first step - that’s huge. I’m seeing more and more investors start right in their own backyard, and Stonecrest/east metro Atlanta has some great pockets for long-term holds.

Since your main concern is about tenants and the overall experience, here are a few tips that might help:

* Screening is everything. Use a professional property manager or tenant screening service that checks credit, background, eviction history, and income verification. Good tenants = fewer headaches.

* Consider B-class neighborhoods with working-class tenants who tend to stay longer. These areas may not have the flashiest returns on paper, but they offer stability.

*Start small and stay local if this is your first one. You’ll learn the ropes faster and make better decisions for your next property.

If you're open to investing out of state down the line, there are strong cash-flowing markets in the Midwest and Southeast - places like Columbus GA, Ocala FL, Memphis TN, Akron/Canton OH, and parts of Alabama still offer solid properties under $250K, many of which are already renovated, tenant-ready, and professionally managed.

Always happy to talk through any options or local strategies. There’s a great community here to support you!

Best of luck!

@Troy Mendoza,

Hey Troy – welcome! Love seeing someone with a strong foundation in both lending and real estate pivot into investing. That kind of background gives you a major edge.

I’m also licensed in multiple states and actively investing. Right now I’m really focused on opportunities in the Midwest and Southeast - markets where turnkey rental options are still accessible, especially for investors looking for stable cash flow, solid cap rates, and long-term appreciation potential without having to manage heavy rehabs or local teams themselves.

Always happy to stay in touch and exchange market insights. Excited to see your portfolio grow!

Best of luck!

@MIchael McCUe,

You're in a really solid position-$120K saved by 30, no debt mentioned, and clearly educated and intentional. That puts you ahead of most, especially since you’ve been studying real estate for over a decade and already have siblings successfully investing in it. Here’s a breakdown of your options with some thoughts to help you decide:

Real Estate Route (Partner with Your Brothers)
Pros:
You have experienced partners (your brothers) who can guide you through your first deal.
Real estate offers leverage-you can control a $300K+ asset with part of your savings.
Cash flow, appreciation, tax benefits (depreciation, mortgage interest deduction).
You’ve been preparing for this exact move for years.

Considerations:
Liquidity: Your money will be tied up more than with stocks.
Risk is more concentrated in one asset vs a diversified portfolio.
Need a clear partnership agreement (even with family).

Good Middle Ground:
Don’t necessarily sell all your stocks. Keep some (maybe 25–40%) as a cushion or rainy-day fund.
Use ~$70K–$90K as your real estate investment capital. That’s enough for 20–25% down, closing costs, and a small reserve on a solid $250K–$300K property.

Stock Market Route (Hire Financial Advisor / DIY Index Strategy)
Pros:
Fully passive and extremely liquid.
If you follow the Intelligent Investor principles (e.g., index funds, strong companies, value investing), you’ll likely do well long-term.
Zero tenant headaches or maintenance.

Considerations:
Slower path to cash flow. Appreciation and dividends take time to compound meaningfully.
Market volatility can be tough emotionally, especially if you’re shifting from savings to investing.

Hybrid Option:
Keep your stock portfolio and slowly DCA (dollar-cost average) into more positions as the market dips or opportunities arise.
Consider moving some money into a Roth IRA or tax-efficient ETFs if you haven't yet.

Since your heart and preparation are already in real estate, and you have family who are actively doing deals and willing to partner this is likely your best first move. But you don’t need to abandon your stock portfolio entirely. Think of real estate as your “wealth accelerator” and stocks as your “wealth preserver.”

Suggested Allocation Example:
$80K → Real estate investment (down payment, closing, rehab/reserve).
$30K → Keep in your brokerage across index funds & blue-chip stocks.
$10K → Cash emergency fund or short-term reserve.

You’re in a great spot-trust your research, keep learning, and execute with caution and clarity. Happy to help you weigh specific deals or investment choices as you go!

Best of luck!

@Gwen Gibson,

Welcome to the community! Starting small is how most of us begin, and it’s a great way to learn the ropes while minimizing risk. The fact that you’re already in the game puts you ahead of the majority who are still sitting on the sidelines. Whether you're managing your own units or working with a team, every deal is a learning opportunity that brings you closer to your long-term goals.

A few quick tips as you grow:
*Focus on cash flow over speculation in the early stages-steady income is what builds stability.
*Build a great team (property source provider or agent, lender, PM) early on-even if it’s just one market for now.
*Track your numbers religiously-good data will guide your next move better than gut feelings alone.
* Learn from others’ mistakes. Forums like this are goldmines for real-world lessons-ask questions, share your wins and losses, and you’ll grow faster than you expect.

Happy to connect and chat anytime whether it's about specific markets, running deal scenarios side by side, etc.

Best of luck,

Melissa

@Michaela DeJesus,

You're thinking about this the right way, especially avoiding traditional financing and being open to DSCR or creative terms.

What I’d do with $40K if I were starting over today:
DSCR Loan on Turnkey SFH or Small Duplex (Midwest or Southeast):
With $30K–$35K, you can get into a $120K–$140K deal using a DSCR lender. These loans are perfect for your situation since they focus on property cash flow, not personal income.

Markets where I’ve seen good returns:
Cleveland, OH – Solid cash flow, strong Section 8 play if managed right
Memphis, TN – Tons of investor inventory, good DSCR potential, just vet the neighborhoods carefully
Columbus, GA – Another under-the-radar gem: strong rental demand due to Fort Moore (military base), decent cash flow, and properties in the $150K–$200K range that work well for DSCR

With your mindset, I have no doubt you’ll get that first deal done. 

Always happy to chat more about specific markets or run deal scenarios side by side! 

Best of luck,

Melissa

@Madhan S.,
Thanks for the thoughtful background -you're in a strong position, and it’s clear you’ve built up a solid base over time. Your challenge is very common for investors who hit that "second stage" of growth: you’ve proven your model works, but it’s no longer scalable or motivating under the same terms. Let's walk through your situation and some strong next steps based on your goals and constraints.

Where You Stand:
Portfolio: 15+ years of buy-and-hold SFRs, one 4-plex
Financing: Maxed out on conventional loans
Lifestyle: Tech income funds investing; rental income can support your family
Goals: Scale portfolio, become more active, increase returns, potentially go full-time
Constraints: Don’t like low cash flow, tired of financing hurdles, not interested in syndication, want control

Strategic Objectives:
Given everything, your best path forward is likely one or more of the following active real estate investment strategies that are scalable, higher cash flow, and do not rely on conventional loans.

1.  Move Toward Larger Multi-Family (5+ Units)
Why: These qualify for commercial loans (no limit like conventional loans), are easier to scale, and cash flow better per unit.

Where: Consider landlord-friendly, cash-flowing markets like in the Midwest and Southeast and some parts of the Southwest like New Mexico or Arizona (if not overpriced)

Next Steps:
Partner with an experienced property manager in one of those markets.
Start underwriting small 6–20 unit properties.
Get prequalified for a commercial loan or local bank financing.
Consider seller financing or creative terms.

2. 1031 Exchange into Better Assets
Why: If you’ve had strong appreciation, selling low-cash-flow SFRs and trading up into MF or commercial assets can drastically improve returns and simplicity.
Bonus: 1031 helps avoid capital gains and depreciation recapture.
Ask: “Which of my SFRs are most equity-rich but underperforming?”

3. Explore Mixed-Use or Commercial Real Estate
Especially appealing for investors seeking more active roles and better returns.

Niche commercial real estate (small strip centers, offices converted to residential/mixed-use, etc.) can cash flow very well and be more stable with long-term leases.

4. BRRRR in Affordable Markets
You could BRRRR small multifamily (2–8 units) in cheaper markets with less capital, especially since you don’t need W2 income to live.

This works well if you’re willing to spend 3–6 months intensively working with contractors and lenders in a focused market.

5. Buy or Build a Real Estate-Adjacent Business
If you enjoy the business and operations side, consider:
Property Management Company: Especially if you build a small multi-family portfolio in a single city. You'll control tenant experience, costs, and can service other investors later.
Brokerage (with investment focus): Could be worth it if you want to create cash flow plus deal flow and equity in projects.
Construction/GC firm: Only if you love renovations and are hands-on. Otherwise, don’t let this become a headache.

Should You Sell?
Yes - but selectively. Sell low-cash-flowing SFRs with high equity and low depreciation left.
Keep those that are still cash-flowing well or have low leverage.

Use proceeds to:
1031 into better assets
Pay cash for smaller multi-family
Fund a small BRRRR project or business

Suggested Game Plan:
Pick a target market out-of-state where cash flow is strong and landlord laws are favorable.
Interview PMs and lenders to start building your team.
Sell 1–2 underperforming SFRs (or do a portfolio analysis to find which).
1031 exchange into 5–20 unit apartments or small commercial in that new market.
Decide on your "platform": Property mgmt, rehab firm, acquisitions, or investment-focused brokerage.

Tools & Tips:
Use cost segregation studies if you haven’t already to accelerate depreciation.
Explore DSCR loans or commercial portfolio loans to avoid personal DTI caps.
Run portfolio reviews yearly to assess performance and equity growth vs. cash flow.

You’re in an ideal position to go from “builder” to “optimizer + scale operator.” The next moves should focus on fewer, larger deals with better cash flow and scalability.

Always here to chat more about specific markets or run deal scenarios side by side!

Best of luck,

Melissa

@Orlando De La Torre,

Welcome to the community, Orlando!

Your background in construction, inspections, and project management gives you a real advantage as you step into investing, especially with strategies like house hacking and distressed property deals where having that technical eye can make or break the investment.

Your plan to start with a multifamily or dual-use property is smart-it allows you to offset your housing costs while building equity and gaining experience managing tenants. Pairing that with low-risk investments like tax lien certificates shows you’re thinking long-term and managing risk wisely.

If you're open to out-of-state investing, markets like Columbus GA, Ocala FL, or even parts of the Midwest (like Akron/Canton OH) offer lower price points and cash-flowing properties that align with your goals.

Excited to see how your journey unfolds-feel free to reach out anytime you want to exchange ideas or resources!

Best of luck,

Melissa

@Avani Bhakta,

Hey! You're smart to explore out-of-state options, especially since California’s high home prices and low rent-to-value ratios make local cash flow nearly impossible. The good news is there are still excellent rental markets where your sub-$500K budget can go a long way and actually generate monthly income.

Strong Rental Markets to Explore:
1. Memphis, TN
* Known for cash-flowing properties and strong rental demand
* Single-family homes in B/C neighborhoods often range from $100K–$250K
* Rents typically fall between $1,100–$1,500/month
* Landlord-friendly state and well-established property management options
* Section 8 and working-class tenants are common, offering consistent income

2. Columbus, GA
* Affordable, growing market near Fort Moore (military base)
* Homes from $125K–$200K rent around $1,100–$1,400/month
* Low taxes, stable tenant pool, and less investor competition than larger cities
* Excellent for long-term buy-and-hold strategies

3. Albuquerque, NM
* A rising market with population growth and job diversification (healthcare, aerospace, government)
* Entry prices around $200K–$300K, with steady rental demand
* Low vacancy rates and increasing rents
* A good blend of appreciation and cash flow

4. Ocala / Citrus Springs, FL
* Affordable new construction opportunities in the $200K-$290K range
* High population growth from retirees, remote workers, and new families
* Renters appreciate newer homes and quiet neighborhoods
* No state income tax and landlord-friendly laws

5. Akron & Canton, OH
* Under-the-radar Ohio markets with strong cash flow potential
* Properties priced between $90K–$150K are common
* Rent averages $950–$1,200/month depending on neighborhood
* Affordable taxes and growing interest from out-of-state investors
* Proximity to Cleveland adds value while keeping prices low

Each of these cities offers a balance of affordability, economic stability, and rent demand - ideal for remote investors who want cash flow and long-term potential. The key to success is building a reliable local team: agent or provider, property manager, and lender who understand rental-grade properties.

You're in a great position to make smart moves - happy to help however I can!

Best of luck,

Melissa

Quote from @Chaim Mal:

@Melissa Justice to gather my team for out of state would you suggest to just google pms and agents in the area or have them be referred ? Thanks for the insight 

While you can Google agents and property managers, referrals are almost always the better route, especially when you're investing out of state. A referred agent or PM typically comes with a track record that someone in the investor community can vouch for. That saves you a ton of trial and error.

Ask in forums like this one (BiggerPockets) - lots of investors are happy to share their contacts, especially if they’ve had a good experience.

Join local Facebook groups or investor meetups tied to the market you're targeting - even if you're out of state, these groups often know the best investor-friendly professionals.

Talk to other investors who are active in that market and ask who they trust for property management, lenders, contractors, etc.

Think of it like building a referral-based dream team - the right people will make your out-of-state investment feel much more local and manageable.

Quote from @Chaim Mal:

@Melissa Justice to gather my team for out of state would you suggest to just google pms and agents in the area or have them be referred ? Thanks for the insight 

While you can Google agents and property managers, referrals are almost always the better route, especially when you're investing out of state. A referred agent or PM typically comes with a track record that someone in the investor community can vouch for. That saves you a ton of trial and error.

Ask in forums like this one (BiggerPockets) - lots of investors are happy to share their contacts, especially if they’ve had a good experience.

Join local Facebook groups or investor meetups tied to the market you're targeting - even if you're out of state, these groups often know the best investor-friendly professionals.

Talk to other investors who are active in that market and ask who they trust for property management, lenders, contractors, etc.

Think of it like building a referral-based dream team - the right people will make your out-of-state investment feel much more local and manageable.