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All Forum Posts by: Mike Paolucci

Mike Paolucci has started 5 posts and replied 241 times.

Post: Buying First Rental Property Out of State

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Cole Jennings:

I am new to real estate investing and I am planning on buying a 100k house in the Cleveland area and renting out to section 8. I don't live in Ohio so I would be an out of state investor. The market around where I live is too expensive for me at the moment. Just want some advice on whether this is a good idea for a first-time investor or if I should take a different direction.


 I was in the same position back in 2021 when I started investing while living in the bay area. I jumped into out of state investing as well and have been pretty happy with my decision. I'd recommend making sure you do plenty of research into the market and chatting with local PM's to get an idea of what you could be looking at. Cleveland is a great market for cashflow but will have some area's you'll want to stay away from (East side of Cleveland). I would recommend staying towards the west side of town. 

Local PM's will have plenty of contractor contacts. Pretty easy to get taken for a ride by some random GC / contractor. 

I would recommend a turnkey single family property to start. Less wear and tear and risk as you get to know the market and what it's like investing in an out of state property. You'll learn A LOT with your first property.

This is a marathon, not a sprint. 

Happy to share some of my oos investing experiences. Good luck with your investing journey! 

Post: Starting My Real Estate Journey – Seeking Insights & Connections!

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Jay Ochoa:

Hey everyone!

Hope you’re all doing well and making strides toward your financial goals!

I’m at the starting line of my real estate and financial freedom journey. I own a home in the San Fernando Valley and recently pulled a $200K HELOC for investment purposes. But to be honest, I’ve hit some roadblocks and lost momentum—procrastination, high interest rates, soaring home prices, and low inventory, blah, blah, blah.. lol—have all played a role.

I’ve been using Redfin, Zillow, Trulia, and Realtor.com to search, and I recently discovered BiggerPockets after attending a local realtor event. My goal with this post is to connect with experienced investors and professionals who can share insights, strategies, and opportunities to help me take the next step.

I’m currently looking at Southern California, Arizona, and Texas (Houston & Dallas) with a target of 8-10% ROI. But I’ll admit, I’m hesitant about out-of-state investing since I’m unfamiliar with rental markets in those areas. Being a dad of 3, a soccer coach, working a full-time job, and being a full-time student can make getting away a little challenging. For those of you in SoCal, you know how tough this market is!

I’d love to hear your thoughts—any advice, encouragement, or knowledge drops that can help me get the ball rolling would be greatly appreciated


Hey Jay. Welcome to BiggerPockets. Great place to learn and network with other investors! Make sure you're doing plenty of market research. Figure out what market works best for you and what your overall strategy is. 

I'm originally from San Francisco and ended up investing out of state back in 2021 and have been pretty happy with my decision. So much so, that I ended up moving to the market to focus on building my portfolio. 

When it comes to your deal source, you might want to look into some off-market solutions. While you're at the networking events, make sure you ask about how others are sourcing your deals. Investor focused agents will be a great way to start, especially the ones who are investors themselves. 

Ultimately, you're going to have to jump in all the way and buy a property in order to get started, otherwise you'll stay stuck in the same place the whole time. If you find a deal that works, go for it and dive in. You'll learn a lot just by doing that. 

OOS Investing will require you to get the right teams in place (Deal finder / property manager / lender / contractors). Most property managers will already have contractor contacts that should be able to get everything done for you. 

Happy to share some out of state investing experiences. Good luck on your journey! 

Post: How would you start if you were me?

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Daniel Jodrey:

Hello BP!

Hoping to get opinions from the community on how they would enter the market and start investing if they were in my shoes:

I have been saving and learning on BP for years, hoping to take my leap into real estate investing. Once COVID hit I waited and was thinking the market would become favorable and I would jump in. That didn’t happen and I’ve been waiting and watching since. I still don’t feel good about buying now with so much uncertainty and high interest rates, however I am at a point where I feel like I need to jump in. I have a lot of free time currently and can dedicate a lot of my time towards real estate.


I have saved around $200k and have family member/partner with roughly $100k. We are looking to partner 50/50, at least in the beginning - so starting with about $300k. I have vast experience in Hospitality and hoping to at some point acquire STR/MTR and apply those skills and knowledge . I am most focused on finding multi family. I'm living rent free currently with family and am ok to do so for foreseeable future.

I am wanting to acquire as much property that is smart for me to do so, with the capital I have on hand. I live in Vancouver WA/ Clark County area and am looking to buy in this area as well as including Portland, Beaverton, Gresham, Ridgefield, Battleground, Longview, Camas and overall surrounding areas. Also interested in Coastal such as Seaside, Rockaway, Canon Beach.


Curious your thoughts on best ways to enter this market and how best to utilize my current saved capital. Also any investors in this area would love to meet and learn from you. Appreciate those I have connected with on BP thus far and your help.


 Hey Daniel. If you can house-hack a duplex / triplex / quadplex then I'd highly recommend starting off with that. If that's not feasible, or the price points are too expensive in your immediate area, then try looking elsewhere in the state OR look out of state. If you can find a turnkey single family that makes sense, go for it. 

That wasn't really an option for me back when I started in 2021. I ended up looking out of state and have since moved to my target market to focus on building my portfolio. 

Single family investment properties will be the easiest to manage, and will appreciate better than multi-family, but will not produce as much cash-flow. 

Happy to answer any questions you might have. 

Post: Looking to connect with agents and property managers

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Matt Vozzo:

Interested in purchasing my first investment property. I am looking to cash flow a short term or long term rental, prefer with a propertymanager. I am located in NJ but open to out of state purchases. 


 Hey Matt. Welcome to BiggerPockets. Have you ironed out which OOS market you're looking to invest in? 

Went through a similar issue back in 2021 when I got started while living in San Francisco. Happy to chat about some of those OOS investing experiences. 

Post: I am here!

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Jinming He:

Hi everyone,

I am from the bay area and I am trying to figure out how to invest in mid west for cash flow, since bay area is way too expensive. Look forward to connecting with you!

 Hey @Jinming He! I'm originally born and raised in San Francisco! Glad to see another Bay Area investor looking into the Mid-West. I did the same back in 2021 for a lot of the same reasons and have been pretty happy with my decision. 

First step is to iron our your overall investing strategy (cashflow / appreciation / combo). Next, decide on what type of asset you want to invest in (single family / multi-family - both have advantages & disadvantages). I would then try to figure out which market you want to targe (look at economics / population growth and other drivers pushing the market into the future). After those 3 steps, start working with an investor focused realtor / lender / property manager, analyze deals and then start writing offers and you'll be off to the races!

Let me know if you have any questions about the process! Happy to share some of my OOS investing experiences as well! 

Good luck on your investing journey! 

Post: Beginner Real Estate Investor

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401

Welcome to BP Alex and good luck on your investing journey!

Post: REI Location Pros and cons

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Shaun Ortiz:

If you could invest in any market across the country, where would it be and why? I’m always curious about the factors that make people decide on specific markets.

Hey Shaun. If the numbers would have worked out, I would have preferred investing near where I grew up (San Francisco / Bay Area). Unfortunately that wasn't in the cards for me. I had to expand my search to other states where price points and cashflow numbers made more sense. I ultimately settled on Columbus, OH because of the growing population & economics going on. Lots of companies bringing money into Ohio on top of people moving to the state everyday. 
Most recently there was a military defense contract was awarded to Anduril and they're supposed to be coming to Central Ohio here soon. Here's the link --> Anduril Industries - Defense Manufacturing Facility

Are you looking at any specific markets? 

Post: Searching for Small multi family

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Nick Wimmel:

Hello BiggerPockets community! I’m currently on the hunt for my next real estate deal and have narrowed my focus to Columbus, Ohio. I’m working with an agent but am looking for assistance in sourcing potential deals, both on and off-market. My primary interest is in small multifamily properties (1-4 units) priced under $300,000. Any help or suggestions would be greatly appreciated!

Hey Nick. Columbus is a great choice. I started investing in 2021 while living in San Francisco and have been pretty happy with my decision and own 13 doors in the area currently. 
Happy to connect and answer any questions you might have. 

I would focus on off-market deals. That's where you'll generally find the better deals.

Post: Rookie question on negative cashflow investment

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Ven Bud:

After hearing to lot of bp episodes on negative cash flow, I have a question.

I am currently living in my primary residence and planning to purchase an investment property, and obviously it is going to be a negative cashflow (bay area), but I am of the opinion that as long as the rent on the investment property is atleast going to be greater than my current primary residence mortgage it can still considered as positive cash flow investment.
The investment property is going to be in a much better location (for office commute, bay area proximity) than my primary residence. I might be totally wrong in my thinking, what am I missing? Is it still not recommended to invest in this negative cash flow property.


 Have you thought about OOS investing where the numbers make more sense and you don't have to run a negative? I ended up doing that in 2021 and found properties that have made me money rather than costing me money every month. 

Post: Columbus Ohio property management ( the good and the bad)

Mike Paolucci
Posted
  • Realtor
  • Columbus, Oh
  • Posts 245
  • Votes 401
Quote from @Maurice Smith:

Hello BP ,

im in the process of closing on another 4unit multi family , this time in Columbus Ohio. I wanted to see if there were any recommendations on good management companies, and ones to avoid.

Did a bit of research on my own and came across R&L property management. They seemed good, and looks like they have prior experience managing the building I’m buying (based off the leases that were submitted to me) but way to expensive to what I’m use to … $137 - $184 per door (over 10%) and then $750 per door for the maintenance reserve. 

I also heard a guy named “ Donnie” who has been recommended to me .. the only issue is he dosent pay his owners until the end of the month .

Is this the norm for Columbus property managers , or am I missing something? 

I have several multi families on the west coast  ( one that I actually manage my self in California) and it’s just one maintenance reserve fee for all doors , and a % of the total rent usually 

( 8%-10%).   And Rents usually get paid around the 10th of each month.

All input is appreciated. 

End of the month disbursements are pretty normal for Columbus. My PM sends everything (Disbursement payment + monthly statements & work orders) all on the 26th of each month. 

Most PM's in Columbus will charge you 7-10% of gross rent as PM fee's + maintenance costs.