Hello BiggerPockets community,
I'm thrilled to join this forum and seek advice from experienced real estate investors. Here's what I've considered so far:
1. Markets:
Local Market: I live in the DMV area (DC/MD/VA) which primarily experiences appreciation, making it challenging to find cash flow properties.
Out-of-State Priorities:
- Price Below National Average: I'm prioritizing markets where property prices are below the national average.
- Positive Population Growth: Markets with growing populations tend to have increased demand for housing.
- Low Unemployment Rate: A stable job market is crucial for tenant stability.
- Rent-to-Price Ratio: I'm looking for areas where rental income justifies the property price.
2. Potential Markets:
I'm currently researching the following markets:
- Huntsville, AL: Low unemployment rate and steady growth driven by large aerospace and defense industry.
- Columbia/Greenwood, SC: Affordable properties and potential for cash flow.
- Cheyenne, WY: Small market with stable economy.
- Syracuse, NY: Decent A education and growing tech industry.
- Open to other markets that I should be researching
3. Property Types:
I'm considering mainly 3bd/2ba in the following property types:
- Single-Family Homes
- Townhouses
- Small Multi-Family (1-4 Units)
4. Starting Small:
- I've been interested in real estate for years but lacked the courage to take the plunge.
- My strategy is to begin with an easy deal, even if the numbers aren't optimal.
- Goal: Gain confidence, understand the process, and get my feet under me before scaling up.
5. Financing and Budget:
- I’m thinking of starting with no more $50k out of pocket for all upfront costs including the down payment to keep with my “start small” strategy.
- Considering a conventional loan with 20-25% down
- I'm open to exploring other investor-friendly financing options that allow for a lower out-of-pocket down payment but I’m not familiar with what’s available to me
6. Property Management:
- Given my W2 job and the out-of-state nature of the investment, I'll have to work with a property manager.
7. Networking and Education:
- As a beginner, I started to reach out to real estate agents here hoping to find a good match and hoping to expand my network from there
- Connecting with experienced investors will provide valuable insights.
8. Timeline:
- I’m thinking 2-6 months will give me ample time for learning and evaluating deals but open to other suggestions
I appreciate your warm welcome and look forward to learning from your insights. Thank you for being part of this supportive community!
