All Forum Posts by: Nicholas L.

@Joseph Dozier do you have any specific questions?

@Annie R. there are other perspectives on FI that overlap with RE. Check out Kristy Shen, Paula Pant, Tanja Hester, Graham Stephan...

@Phu Le saving $1K a month isn't bad.  Save up enough so you have a down payment for a house hack that isn't in CA.

@Carl Edelman OK - I'd get an agent.  They can pull comps, help you with an offer if you decide to make one, etc.

@Carl Edelman if it's truly off market, is the "asking price" just a number the seller conveyed to you verbally?  Or where did they $260K come from?  And are you working with an agent?

@Alecia Prigmore are you going to be self-managing, or do you have your own property management lined up?

@Kevin Mcilnay I actually think you've got it =) another part that gets overlooked is holding costs.  You're paying taxes, insurance, utilities, etc. while you rehab, and interest on a loan if you've financed (no interest if you've bought with cash.)  All those costs add up!

@Nathan Clifford David Greene's RE books are good.  For mindset and overall strategy, not just RE, check out Kristy Shen, Tanja Hester, Grant Sabatier, Paula Pant

@Annie R. I think there is a whole spectrum of investment possibilities in real estate - on one end are the very hands-on, DIY projects that require a lot of time and effort, as you correctly noted, and on the other are the totally hands-off investments, like REITs and syndications.  But there is a lot in the middle, many, many different options... and the forums have threads on absolutely every option.  There are tons of "W2 professionals" on all of the forums trying to decide what to do and how to participate; I don't think it's accurate that most folks here are DIYers and that W2ers are the minority.  =)

Say for example you buy a turnkey property (I'm not endorsing it, just bringing it up as an option) and you have it under property management. You might not get the greatest ROI, but that would be pretty darn hands-off. If you have a good property manager and good tenants - you collect rent. I think that's fairly passive. (But on any given property YMMV.)

Another thing to compare is not just returns but control. Even in my turnkey example, you have so much more control over your investment than you do an investment in a REIT or an index fund. You can raise the rent, lower the rent, refinance, sell the property, use it as collateral in a portfolio loan... with an index fund there is not a thing you can do to influence the returns.

@Julie Wright hard money is expensive, and a true BRRRR is difficult in today's market. You would ABSOLUTELY need to have your refi set up and ready, the HML comes due no matter what happens or how the project goes. See this thread with some great info and a numbers breakdown.

https://www.biggerpockets.com/...