All Forum Posts by: Nicholas L.

@Eric Miller

I was going to say something similar to what @Greg Scott said, that generally you wouldn't have this as a choice.  but you did say that it "reflects your situation."  are you able to share more about that?

i am just going a deal at a time. i actually have bought properties on seller finance at 95% LTV. i've also BRRRR'd. i'd do either. to go back to my first point, though, i generally can't pick - it can take months and months to find a deal. i then evaluate it and i buy it or i don't. lately i keep getting outbid on potential BRRRRs. I'll make an offer that works for me and then someone else will bid slightly more or way more. i move on to the next one.

what were you looking to get out of asking this question?

@Scott Baker

hello and welcome.  those are pretty broad questions.  anything more specific?

@Edward Heath

hello.  i am sorry to hear you had so many problems to deal with during 2024.  i hope that 2025 is better for you.

I am going to respond to your question 3.  I am not sure what type of real estate investing you're considering, but it sounds like, with your family and busy job, you won't have a lot of time to be hands-on or personally involved.  if you just buy standard, long term rentals and put them under professional property management, that is certainly viable.  but, it's not going to be "profitable" for several years, depending on how you define profit.

you'll have a down payment, then closing costs - which new investors always seem to be shocked by - then potentially some costs to get a property rent ready, then you'll pay a month's rent to get it listed and rented out, then you'll likely have some repairs after the tenant moves in.  so - add that all up and that's a big outlay up front.  when will you start to "profit"?  if you net $150 in month 3 over and above all your costs for that month, is that profit?

there are of course more creative strategies to reduce that up front outlay, or recoup your capital, like, say, the BRRRR method. but they are time and energy intensive and certainly not hands-off.  so that's the trade off.

hope that helps - just giving you some things to think about.  happy to answer any questions you have

@Jarrod Ochsenbein

congrats.  i know i could probably look at your other posts but since you posted...

-are you buying with conventional or DSCR financing? or something else?

-how many bathrooms per resident have you found to be successful?

-how is management split among you, PadSplit and any other third parties?

-any major differences among your 4 properties?

@Nathan Deutsch

https://www.biggerpockets.com/real-estate-investing/house-ha...

@Nathan Deutsch

start with a house hack

@Sophanara Khoeun

Hi. I would probably start with something different for your first property. Foundations are a big deal. If the house is listed on the MLS and everyone else has passed on it, then you didn't "find" it. Pass.

1. No, there's no single person that handles everything.  That's you!  You handle everything.  

2. Yes, hire a PM for every property.  It frees up your time.  Find a local one.  This may take some work.  Go to meetups and reach out to other investors.  You may not be able to simply Google them.

Here's my overall reaction to your post.  

It's important to keep in mind that everyone you hire is providing you a service - no one is guaranteeing you any outcome. An agent is not guaranteeing you a purchase or a sale.  A PM is not guaranteeing you that your property will rent.  A home inspector is not guaranteeing you that they will find everything.  A lease will not guarantee that your tenant will pay rent.

The more active and proactive you are, the better everything will go.  Investing in individual properties is very hands-on.  If you are too busy to go see a whole bunch of properties in person, meet PMs, and help with getting your first property stabilized... you may want to wait until you have more time.

Not trying to be negative, just realistic.  Happy to help further

@Denise Lang

hello and welcome.  there are lots of threads on BP about investing out of state.  it is definitely a viable strategy, but many people assume they will automatically be successful solely because... you must make money buying at those attractive lower price points! and that is definitely NOT the case.  many houses in the midwest, for example, are very old and need major rehabs.

i personally think out of state investing is more difficult than advertised, and much more difficult in the current investing environment, with: prices high; interest rates high; tremendous demand for inventory, by both investors and retail buyers; and good PMs, contractors, etc. booked up.

here's a really thoughtful thread with the experience of another CA investor and lots of different responses:

https://www.biggerpockets.com/forums/12/topics/1215726-break...

and here are some threads about how it can very easily go wrong:

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

https://www.biggerpockets.com/forums/48/topics/1160450-run-i...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

finally, you also said you "don't have a lot of money to start with."  just to be candid, unless you're using some kind of creative strategy... you need a really solid amount of cash including reserves.  you're going to be INvesting for the first few years... rental income from the property isn't going to start paying back what you spend in closing costs, rent ready costs, stabilization costs, down payment, etc. for several years at a minimum.

hope this helps - not trying to be negative, just realistic.  i invest primarily where i live but also have a few OOS properties myself.

@Eric N.

I have done a few. I'm still not able to hit home runs, but I'm trying to get better. I only buy on seller finance, or BRRRR. I can't shell out big down payments that I can't recoup.

it's fine that Scott can find those deals.  Lebron James can play in the NBA, you know?   I wouldn't be comfortable buying a cheap property and not actually rehabbing it.  Everything in Pittsburgh in an OK neighborhood for that cheap of a price likely needs an $80K+ rehab.

@Eric N.

there are a lot of properties in Pittsburgh for less than $50K.  some are even in decent neighborhoods.  they are just very old and need big rehabs.  ask me how I know =)