All Forum Posts by: Noah Chappell

@Cameron Montgomery you could find success in all of those markets. I think with that short list it really comes down to which you like most. Is weather a factor? Do you like a city near the water? Shortest/ most direct flight? Etc, etc.. I'd advise doing some research to narrow down the top based on pure convenience factors, then fly to each one for a few days to check it out. Go with the one you feel most comfortable in. As I've said you can find success in all of those markets, but the thing that could make you fail is burning out, so choose a place you feel comfortable visiting over the long term. 

@Vince Coffeen congrats on commanding 1m in purchasing power. I do think you'll find the value add and opportunity for advancement is in the older small multis in more working class neighborhoods with value add potential. Consider buying a brand new triplex for 1m, I can't see this cash flowing and it's kind of one and done, no way to recoup your money. Now if you bought 3 distressed tri or 4 plexes using rehab loans then BRRRR'd them all, turning them into clean/ safe/ decent section 8 rentals, you'd be cash flowing nicely, have all your money back to rinse and repeat, and be doing us all a favor by bringing up some distressed neighborhoods, not to mention providing housing to people who need it most. Don't be afraid of 100 year old houses, where I am I don't think I've ever seen one less than 100 yeas old..

Totally different situation if you come upon a plot of land in a prime area that you can build on, then you could probably make the BRRRR work with new construction, defer to Bruce on that point..

@Lauren Hogan so happy to know we'll have a landing page! I love this market because as has been mentioned here the fundamentals are strong, by which I mean there's a diverse economy characterized by durable industries including tech, healthcare, manufacturing, distribution, etc, there's population growth with young professionals moving into the city, the cities are walkable and well planned, there aren't natural disasters such as hurricanes, fires, earthquakes, etc, to worry about, and the quality of life is generally high. The vacancy rate is one of the lowest nationally, leading to a #1 spot on 2019 Marcus & Millichap multifamily north American investment forecast. People argue that the liberal laws are slanted against landlords, but I find that heavy support of tenant rights also leads to government programs supporting affordable housing, which I've benefited from. Is summary, I feel that the Minneapolis - St Paul market is a great balance between cash flow and appreciation, and the long term outlook is promising. 

@Aaron T. as a Midwesterner/ East-coaster I'm not too familiar with the LA market beyond what I've heard, but my first thought would be to do your BRRRR, make sure your condo breaks even when you rent it out, then expand your portfolio with the refinance money. If you've got 50% equity in your condo I assume you purchased it 3-5 years ago, and you're not likely to find another similar asset for that price again. I'd play the appreciation game by holding onto your condo since you already own it, then balance with some cash flowing properties in another region.

@Abby Link great advice given in this thread. Only thing I'd add is to be very comfortable with the city & neighborhood, especially with a house hack. It's very easy to get caught up in the excitement of RE, especially with "yes men" around you encouraging you on, maybe with the hope of a commission check. However, after 3 months of living in a distressed property in a marginal neighborhood in an unfamiliar city the glitter will come right off.. unless your "why" is truly strong. So I'd urge you to priorities feeling comfortable in your setting, at least for your first deal. A good way to get a feel for decent neighborhoods is to use Trulia crime map, then choose a deal where the numbers make sense in a low crime area. This may lead you to living somewhere boring for a year, but at least it won't be dangerous and if chosen wisely will give you a good buy and hold property. 

@Michael J. Lemus I'd say if that's what you want to do, go ahead and do it! Maybe read David G's book on long distance real estate investing first. Then I'd research markets in the Midwest with the strong fundamentals you're looking for, maybe diverse economy, income 3x rent, diverse economy, consistent population growth, etc. Try to choose somewhere you don't hate - you'll be married to this place forever. Maybe take a look at the Marcus & Millichap multifamily investment forecast, etc. My cousin has bought 2 properties in Cleveland from Manhattan and is doing well. It can be done. 

@Rachel Mutts agree with everything thats been said. I think the main point is, try to prepare as much as you can, but then understand that without taking that first step you'll never be on your way. There are things you simply can't know without the trial and error, so no point in stressing. I think you're doing a good job in saving and getting your credit right. I'd read a few of the books available on this site - maybe the Brandon Turner's book on rental property investing, on financing with no and low money down, and on land lording, then I'd dive in with a low stakes property. For your first one, you might want to get something like a 2 or 3 bedroom/ 1 bath house that needs paint, carpet and light fixtures thats selling a little under market. With that one deal you already have your mind around lending, rehabbing, working with a realtor, and then a property manager. You'll be off to the races. Correct me if I'm wrong, but I think Virginia Beach is a pretty good place to invest, so you're already in the right spot. 

@Grace S. wow that looks like quite the project.. is that some 6 or 8 unit? Only way I can see it working is if it's in some corner of Minneapolis with great appreciation, maybe prime Uptown or NE, otherwise your time and money are better spent elsewhere.. 

@Diana Gomez Hernandez good luck, please let me know if that works, I currently occupy 1 unit in a 4 plex I own and would very much like to send the 1 non paying tenant on her way, but was told by my property manager/ their legal team that this was an impossibility during the moratorium, but I'd love to be proven otherwise.