All Forum Posts by: Nick Scullin

@Bill B. That, I think, is one of the things I needed to hear the most. That makes a ton of sense!

Are there investors there making suburbs work? I feel like when I am here on BP and listen to the BP podcast, as well as talk to other friend investors, they are all in well known popular cities, or very proximal suburbs. I understand people are always going to need houses in the suburbs, but I am just in my head that I wouldn't be able to make investing work. For me, I want to invest in Northern Philly Suburbs. While still very close to Philadelphia, I am just telling myself "Oh this isn't a place to invest because these are just random suburb towns." I understand that there are people there right now who are renting so there is obviously some market, but are suburbs something other investors are making work? 

I am looking for you guys in the BP to tell me if I am being thinking about this all wrong, or can I make things work in suburbs? I just don't want to derail myself from wanting to invest because of this excuse! I am excited to start with a House Hack this year and just keep rolling from there! And I really want to make the suburbs work FYI!

Thank you for any and all input!!

@Chris Herrera Good point about cash flow. I have been analyzing deals (just to really get this skill down) and I do find some that will cash flow. I guess you make the great point that, it can still be a great deal when it cash flows, it will just be hard to scale quicker. And i'm always hesitant to assume appreciation, say 2%. I want the numbers to work in my favor even if for some reason that doesn't happen to the extent I want long term.

 I think this where learning to use OPM is very advantageous. I am currently reading the Bigger Pockets book How to invest with no (and low) money down. I've also been learning about it through some BP podcasts and other blogs. While easier said than done, it can be a great opportunity to ramp things up in a more expensive area.

My biggest question with using OPM is how to make each person benefit? I guess i'll figure that out more from reading the book!

@Rick Pozos Those are great points. I'm not trying to come off as "get rich quick" as that's not really my plan. I am learning all I can and starting off slow with a house hack just to get an understanding of all the basics. When knowledge and experience grows, the portfolio will follow. I just am ambitious because I don't want to do the slow approach of duplex one year, then maybe one more the next, then a couple years later a SFH. Trying to take the advice of Brandon Turner and start working that expansional growth.

And i love your point in the second paragraph. The goal would, in theory, to get a modest portfolio (10 doors) and have all my CRM together, a team in place, and methods for being efficient. Then use the equity through selling or refinancing to "scale up" into commercial. 

Also, I am a very frugal person and live well below my means already. Spending $2000 or less a month for ALL my expenses and investing everything else into index funds. Emergency fund is stuffed up as well. So my money is real, not tied up in labilities (no debt fortunately).

Thank you for the advice, it helps! 

@Noah Chappell Thanks for the input. It's true i'm getting ahead of myself and need to start first. BRRRRing seems like the way to go. I'm just concerned about taking on a MASSIVE rehab projects in say Class C properties. The goal is to get a couple multifamily units under the belt over the next couple years and put methods in place so that when scaling becomes possible, I'm ready. Hopefully I can then use the equity from my multifamilies and dive into Commercial RE maybe with the help of private lenders made through connections by that point!

@Taylor L. That is good advice. How would you recommend starting and running my own group locally? To me it seems weird to do that as I am just starting out and learning, so I would be worried I do not have a lot to offer for others (other than a group to gather to).

@Greg Scott Thanks for the reply! I know that the 1% is just a quick and dirty option for analysis. I guess to me it just seems discouraging that the purchase prices relative to the rents are worse than other areas. I have started analyzing deals for Cash on Cash, cash flow, and cap rate (even though this doesn't apply much as I will be financing). I have found a couple places that would cash flow, even if I lived in the unit (if I had a roommate as well). So I guess that is what matters. The Cash on Cash return is never crazy though from what I have been looking at for deals I find on the MLS (6-8%). I guess I should just stop looking for home runs and get a "base hit" as Brandon Turner says just to get the ball rolling.

Also, how would people go about scaling portfolios when the RE is relatively more expensive? The whole scaling part is what is hard for me to wrap my head around. Living in and buying house hacks every year is great, but slow. What will allow to grow that portfolio to 20+ units over lets say 3 years?

P.S Just started reading Investing in real estate with no (and low) money down by Brandon Turner, so hopefully that helps me get through the money barrier. 

While learning all I can about real estate through books, podcasts, and here on BP, I want to start making connections. So I wanted to ask the BP community here what your thoughts are on the best way to network? I finally have a vision of what and where I want to go in the future, so I am excited to start talking about my RE investing with everyone I can (without being too annoying haha). I know that having this vision allows me to create my own luck and opportunities and see them when they happen. I also want to try and start attending RE investor meetups, found through the BP website, but it is tough right now with Covid as you all know.

So enough about me, what has worked for you all? I know how critical networking is in this industry!

Hi BP community! So in my learning phase of real estate, i've come across a few questions. After finishing up Josh and Brandon's book on How to Invest In Real Estate, I was drawn towards multifamily units and commercial real estate. I want to start my journey with a house hack that is very close to my day job (so I can drastically reduce time and money on commuting) and from there get into multifamily homes. I feel like it is a great way to scale my portfolio which will then lead to commercial RE. My problem is investing in a somewhat more expensive area. I'll be investing in Northern Philly Suburbs where duplex's can run well above of 300k. But the thing is that rents mostly don't pass even the 1% rule. 

My question is, are multifamily homes in more expensive areas a bad investment, or is it a thing of finding the right deal? I hear of so many examples of Midwest investors putting 100k into a multifamily unit that pulls $1500 or more rent, but that isn't the case around here (as far as I know). 

Any input to help me would be great. A lot of what I want is to know that this IS possible and how people are able to take this concept and really scale. Trying to learn all I can!!

@Ryan Copeland This is super inspirational and has me excited to try and get my first investment property by the end of 2021! Wishing you luck in the future!