All Forum Posts by: Nelson M.

Hello everyone,

I think I may have found a niche that could work for my situation but I'm looking for some advice first. Living in New Jersey, I realize I can't invest locally yet because I lack the cash and because the ROI numbers don't look so good around here, but seeing all these listings in low-rent areas that show positive cash-flow is quite exciting. Recently I've been considering purchasing $20k-50k homes that are in good condition and tenant-occupied, so my question is, does anybody have any tips for a first-time out-of-state investor? Some things to look out for? Past experiences?

I'm interested in states like Florida and Wisconsin, just to name a couple. Not necessarily in the worst neighborhoods, but places where average real estate prices are relatively low and the quality of life is still decent. 

I've read the books, I've listened to the podcasts, I've ran conservative numbers, but I believe there is nothing as valuable as actual experience. So I figured I'd ask the helpful community of BP for some insight before I embark on this journey. 

Thank you all in advance!

This sounds like a great deal! I also want to get into the business of purchasing cheap homes and taking out 203k loans to finance repairs in order to create cash flow as rents around my area are pretty high. Inspirational stories like this one make me want to get started right away but I'll have to wait until I purchase my first live-in duplex/triplex before I start investing in these rehab properties.

I'll be keeping tabs on this project and I'm looking forward to reading your future updates.

Thank you!

@Judy p - that sounds like something I'd enjoy doing as well. Thanks for your input! I may look to start that way to amass the 3 years of experience so that I can get the broker license and eventually open up my own property management LLC.

My goal of bringing my score from 620 to 700 and saving up enough for a down payment by the end of this year is what is "holding me back". Although I wouldn't call it that, I'd call it preventive planning. 

I'm aimin for January 2016 to be my official start date. 

Great job! I look forward to the day I can begin investing in commercial properties. Your story is very inspirational!

Question - you said you started out with a commercial unit while working full time, did you have enough money saved up for a big down payment? How was the financing process for a first time investor looking to start off with commercial units? I ask because that is something I'm also interested in doing but I'm only at about 55k at my full time job with little cash saved up and I doubt I can get financing for a commercial unit just yet until I can at least have it backed up by a couple of multifamily units, but I could be wrong.. Any thoughts or suggestions are appreciated. 

Looking forward to reading about more of your projects!

Hello BP community!

First off, let me start by saying that this website and its members are awesome. I have been reading the forums, the guide, listening to podcasts, etc. Out of all the sites I've read, BP seems to have the most accurate and helpful information out there. Thank you guys. 

With that being said, I am happy to be here and excited to start investing! Some background about me: I'm 26, a full time employee, and I hold a bachelor's degree in finance. I live in north NJ and I am looking to purchase a multi-family property soon to live in it while renting the other unit(s). My only issue is that I do not have a large amount of cash for a DP except for $10,000 that I plan to borrow from my 401k and seeing as how prices in my area are around $200k-400k I'm hoping that a 3.5% FHA loan leaves me some room for cashflow.

My short term goal is to purchase 2 multi family units next year after the one I'm going to be living in. From analyzing my market, it seems like the most efficient strategy around here would be to buy homes in need of rehabbing and use 203k loans to get them up to standards, which would undoubtedly generate occupancy and cashflow. My long term goal is to purchase enough properties and do real estate investing full time. 

P.S- I was considering opening up a property management company seeing as how I'm going to be managing my own and I wouldn't mind the work as it is mostly about being highly organized. My only concern is that NJ requires a broker's license to open this business and for that I need 3 years of employment as a RE salesman in order to apply for a broker's license, which I I don't have time to do because I'm going to stay in my career working full time for now as well as investing. Does anyone have any experience with this? Would I be able to get my license in another state and use it here?

Sorry for the length of this post haha. I still have many more questions but I will pace myself. I'm just excited to finally dive in. 

Hope everyone has a great weekend. 

 Thank you for your prompt response! I appreciate it. 

Yes I would be doing it through a bank, unless that doesn't work out for some reason. Either way I only have about 10k to offer for a DP so if the bank doesn't give me the whole amount I'll have to look for the rest from a private lender. 

As for the 203k loan, thanks for this helpful information. I read something about it before and thought it might be what I needed but I wasn't sure what kind of criteria banks use as far as accepting 203k loans vs traditional loans (both FHA). Are the loan terms usually similar in both types? I think that due to my market's circumstances, doing this will have to be my strategy in order to invest successfully.

I'm in the same boat as Spencer except I live in the northern NJ (NY outskirts) area. It's real tough to find deals here and I'm looking for a duplex I can move into while renting the other unit. 

@Juan Maldonado that's very interesting. I've seen just a few cheap houses but they all need major repairs and I would need financing for it. Would you encourage or advise against financing for repairs to generate cashflow?