All Forum Posts by: Michele Velazquez

Quote from @Chris Davidson:

@Michele Velazquez check copyright date, and then think of what part of the market cycle we were in during publishing. A lot of older books have really good info, but to take a rule like that and run with it will have you standing on the sidelines in this market. Rules are just to help weed out properties, you still have to take the time and underwrite the deal to see if it works. At that point you can see how those rules compare.

Best of luck.

Book was written in 2017 in my brief diligence.

I do, still exists in my market and many midwest markets. Sounds like your looking in more appreciation markets so I think going under the 1% rule does make sense but I think many more factors come into play. Location, rental trends, job trends, path of progress, short term rental options but with that risk comes greater reward sometimes

Quote from @Michele Velazquez:

I am reading the book about out of state investing and was wondering, do people follow the 1 percent rule?  I had narrowed down my search to a few cities for where I want to invest in a multi family unit and hardly any of them meet this 1 percent criteria?  In Atlanta, Houston, Austin, Baltimore, Cincinnati... barely any 1 percent?

 Well, it's more of a suggestion than it is a rule. Right now it is hard to find in most markets. Would have been easier 10 years ago when the market bottomed out from the housing crisis. That said, you can still make money on homes that don't meet the rule. How much money will depend on specifics like vacancy rates, repairs, whether or not you self-manage, and property taxes. Run the numbers and look for something with a good margin, where you should still be safely cash flowing every month. Having a property that makes ome money but doesn't meet the 1% rule is still better than not owning any real estate at all. 

I started my REI journey in 1982. Never heard of the 1% rule until I saw it on this forum one day.......

I don't like rules. Make your own........

Quote from @Michele Velazquez:

I am reading the book about out of state investing and was wondering, do people follow the 1 percent rule?  I had narrowed down my search to a few cities for where I want to invest in a multi family unit and hardly any of them meet this 1 percent criteria?  In Atlanta, Houston, Austin, Baltimore, Cincinnati... barely any 1 percent?

 Throughout the Atlanta area it is significantly hard to find a 1% rule unless you are getting a direct deal from a seller that has a mispriced property. Pretty rare to find one and it doesn't take into consideration much of the effect of rates increasing which still effects your projected cash flow. I have met people that don't care about any sort of timeline and try to build their portfolio and or business off of home runs, but that's no way to build. If you aim for the singles or doubles (deals that are under 1% but still make sense) then you'll be poised to build/grow more successfully. 

If investing in Baltimore City, make sure the properties you look at are accessible and you can get in to complete a REHAB budget with a contractor. I have clients that have had issues with this.

I'm in the same boat. Looking for my first multifamily investment in Baltimore or surrounding counties. 

Quote from @Michele Velazquez:

I have been doing a lot of research on where to buy my first multi- family unit and I found Baltimore interesting.  I wanted to know what experience you have had investing there?  My goal is cash flow and decent appreciation.  TIA

With your goals stay out of Baltimore. First of all MD is a tenant friendly state. Have you looked at Baltimore stats in terms of economic growth, population growth etc? The properties in Baltimore are ridiculously cheap for a reason. I haven't see much appreciation in Baltimore over past few years. If you are looking for CF AND decent appreciation, look in mid-west, buy off-market below market value and you will meet both of your goals.

Good luck..

There you go
https://www.globest.com/2022/0...

Also this week homebuilder permits increased for MF while declining for SF.

the trend is pretty clear...