All Forum Posts by: Aaron J.

What is the industry standard insurance protection to have when owning just one rental? I understand that homeowners insurance is mandatory for any home whether owner occupied or non owner occupied, but what about additional insurance? Insurance that protects you from a litigious tenant. What do landlords typically have in place with regards to insurance? 

Also, what do landlords typically do with regards to business entities? What is recommended? What do people do when they first start off? Sole Proprietorship? Limited Liability Corporation? Partnership? 

My goal is to eliminate as much risk as possible but still be in the green when all expenses are paid of course. 

I really appreciate all the advice from everyone who posted. I know it takes time to formulate well thought out replies and everyone gave me a lot to think about. I'm thinking maybe it would be better to do a trial run of a town first by renting in the area I want to invest in to get a taste of what neighborhoods are the best and how the local market is in general. Although renting is a hard concept for me to accept too since the money spent every month could be better spent on an investment. I'm not sure how comfortable I am with buying something out of state. I want to be able to check up on my investment and do routine property inspections. With all the resources on this site, self property management seems very doable with regards to developing solid rental agreements. My plans are to start small to get a taste of real estate investing, property management, tenant landlord dynamics and management and grow from there. I'm definitely in education mode for now, trying to absorb as much information as I can to avoid a huge mistake. Again, thank you everyone who posted. Very valuable input.

I'm 33 years old. I'm a newbie to real estate investing. I've been listening to Biggerpockets podcasts and reading through the UBG to REI book and I just finished reading Rich Dad Poor Dad. I definitely have a strong desire to move out of the current area I am living in now (Bay Area). I have saved a $45k nest egg from working over the years. I own a condo with my brother that will eventually be sold in the next year or he will buy me out which will bring my cash in hand to about $100k. I want to begin my wealth building ASAP but I want to make the right first move because I feel like I don't have any room to make any mistakes given my age. I have chosen to focus on the buy and hold strategy as I tend to think that it is a secure low risk way to build wealth over time and something I think I would be comfortable with. I am having trouble deciding on what city to move to where I can be happy there, and successfully build the real estate business on the side until I am able to quit the day job. I would like to not hire a property management company in the beginning so as to maximize cash flow, if any, or break even at least in the beginning and live frugally. My idea so far is to buy a duplex, triplex or quadplex and live in one of the units and then of course rent the remaining units out. I have considered Portland, Oregon but am very worried about the excessive rain. I have considered other areas in California, like Central Valley, but am very worried about the excessive heat. I tend not to do well with extreme climates...but I also am willing to make sacrifices to better the chances of success in my dream to have a successful real estate business, if all goes well, I can live anywhere right? So my question to you guys is, what would you do if you were in my cash position? What area of the country would you go to? What is the smartest financially intelligent move to make?

Hi Troy,

Thanks for the reply. That's interesting feedback about Bend. I have heard the same about the job market in Bend. Which is a bummer. I'd like to get into a small property management company, title insurance company or a fire equipment company. In terms of self employment, what line of work tends to do well?

As far as another bubble goes, what would the bubble be based on this time? Can you explain the 1% rule? The 50% rule? The 2% rule? Populations will inevitably grow and the Bay Area is already overflowing to Sacramento and surrounding areas. I have heard that Oregon people don't like Californian people because they are driving up the cost of real estate making it unattainable? You think that's true? What are the city population projections of Bend? Plans for infrastructure? Public transit?

Thanks everyone for your input, much appreciated. Yeah I think maybe it may be more fruitful in the sacramento area. More research and homework required...I will be visiting Oregon in September and report back. Does anyone have any thoughts on Atlanta GA? I heard there are some turnkey opportunities for under $100k? 

Hey Guys,

I'm a new member from San Jose, CA looking to get into real estate. I've listened to a few episodes of the BP podcasts and am currently reading "Real Estate Investing for Dummies". So I'm definitely a newb. I see the potential of how real estate and change my life but am suffering from analysis paralysis, also fear of things going wrong and losing big time. I currently own and live in a condo with my brother 50/50. We plan to part ways sometime in 2015. So that means he buys me out or I buy him out or we sell. We don't really know how it's going to play out at this point in time. I'm not really interested in living in the Bay Area anymore and would like to try a new area. I have considered central Oregon or possibly the Sacramento or surrounding areas. I have not decided yet on that either. I have heard that Oregon has a depressed Economy. Can anyone comment on that? Specifically the Bend area? Is that area promising for real estate? When I move, I want to start off my investment strategy by buying a duplex or triplex or fourplex and living in one of the units and renting the rest. I have been advised by family and friends to rent there for a year to see if I like it before I get into real estate. Thoughts on that?  Of course all these plans depend on me having steady employment wherever I chose to move. I have a 10 year plan that involves a buy and hold strategy to get me to a point where I can be self employed with 3 or 4 properties living off the cash flow and then of course reevaluating goals at that point. But for now, baby steps, I just want to get into one property and start now so that there is some light at the end of the tunnel in terms of early retirement and the ability to be free to do the things I have passion for, like music recording and composition, spending time with family, etc..... So that is my situation for now... Oregon, or Sacramento? I have doubts about both, the cold weather and economy in Oregon and the hot weather in Sacramento. Comments? Thoughts?