All Forum Posts by: Mike Paolucci

Hi @Poppy LLoyd, welcome to BP! 

I wouldn't recommend commercial as your first investment. There's a lot that can go wrong financially and you can really put yourself in a DEEP hole if things go south. 

Single family investments are an awesome way to start. My first investment was a 3/1 single family in Columbus, and was probably (in my opinion) the best decision I could have made as an rookie out of state investor. It allowed me to learn what owning property was like, while getting some positive cashflow.

 Sub-meters are a landlord's best friend. If you're not using the utilities, you shouldn't be paying for them. 

@Les Z. Check out the Ohio markets. I started off investing in Columbus, OH while OOS and haven't been disappointed with my decision. Columbus offers a good mix of cashflow and appreciation while Cleveland is great for cashflow. Cincinnati is also another good market to look into as well. 

Hey @Annwar Matani congrats on taking your first steps and welcome to BP! 

I started off my investment journey the same way in 2021 while living in CA. Happy to share my OOS investing experience. 

If this will be your first investment property, I would recommend starting off with a turnkey single-family, rather than a full on BRRRR.
Reason being, that is more advanced strategy and it's very easy get in over your head quickly if you don't know what you're doing. RE investing isn't a sprint, its a marathon. You will also learn A LOT from your first property just by owning it and you'll want to mitigate your financial risks and get into good habits ASAP.  Once you have more experience and have established trust in your team, then have at it!! BRRRR all day long!!! 

Cleveland is a great market for cashflow. Our brokerage does a lot of business out there. If that is your only priority then that is a great market to look at. If you're open to a mix of cashflow and appreciation, check out Columbus, OH. 

Let me know if you have any questions & good luck on your journey! 

 @Shivam Patel If you can house hack locally, do it. You'll learn a lot just by owning and being a land lord. If the numbers don't make sense for you locally, check out Ohio. 

I started off OOS investing while living in CA in 2021 in the Columbus, OH market and have been pretty happy with my decision. I've gotten a good mix of appreciation and cashflow on all my properties. 

Happy to share my OOS investing experiences in Columbus! Good luck on your investing journey! 

 Hey @Taylor Marks congrats on taking the first steps in your real estate investing journey! I'm originally from San Francisco, CA and started off investing out of state back in 2021. 

Best thing to do, in my opinion, is to do some research:

1 - Figure out what your end goal is and how you plan to get there

2- What niche you want to invest in (single-family, small multi-family 2-4 units, large multi-family). I recommend a single-family to start b/c you're going to learn a lot from your first property. Single-family properties present less wear and tear on your investment and allows your to limit your financial liability. 

3 - What type of market your looking for (cashflow primarily, mixture of cashflow & appreciation, primarily appreciation). 

4 - Get in touch with local boots on the ground - as others have mentioned, the core 4. A solid investor friendly agent will be able to help you navigate this one. 

Good luck on your new journey and let me know if you have any questions! 

Find some local meet ups. You'll be able to find a lot of great resources that way and learn from them. 

I would also reach out to different brokerages and see if they'll allow you to go in and shadow for a little bit. Brokerages are always looking for young, hungry people to impart knowledge to, however, I suggest you try to ADD VALUE to them by way of volunteering your time. You're going to learn a lot just by being around the business. The more you're around and adding value to mentors, the better off you'll be in the long run. They're teaching you life long lessons at the end of the day. 

Good luck on your investing journey! 

 Hey @Komal Sekhon, congrats on taking the first steps in your REI journey!

If you can find a local multi-family where the numbers make sense, do it. 

If not, then take a look at the Ohio markets. I'm born and raised in San Francisco and started my investing journey buying out of state in Columbus, OH and have been pretty happy with my decision. The numbers and landlord laws out here make a lot more sense in my opinion and I've been able to have a good combination of cashflow and appreciation. 

Let me know if you have questions! Good luck on your investing journey!

@Jagpreet Singh just sent you a short list of Property Managers. 

Let me know if you have any questions. Good luck on your PM hunt! 

Hi @Siddhant Pradhan. I'm originally from San Francisco and ran into the same issue. I would recommend checking out of state markets where numbers and landlord laws make sense. I ended up investing in Columbus and have been pretty happy in my decision. 

Single family investments are an awesome way to start. My first investment was a 3/1 single family in Columbus, and was probably (in my opinion) the best decision I could have made as an rookie out of state investor. It allowed me to learn what owning property was like, while getting some positive cashflow. 

Pros to SF homes:
1. Less wear and tear on the property = less of a financial burden while learning what it's like. 
2. Single family homes are very desirable for renters from my experience. I've been able to fill my vacancies relatively quickly compared to my duplexes in the same neighborhoods. 
3. Depending on how it appreciates over the next couple of years, you can always 1031 into a multi-family property relatively easily. 

Cons
1. You don't have multiple income streams like you would with multi-family 

The key is having the right local teams in place. With the right property manager, a little TLC and preventative maintenance, it'll be a cash cow for you. 

Let me know if you have any questions and good luck on your investment journey!