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All Forum Posts by: Patrick V.

Patrick V. has started 9 posts and replied 15 times.

Operating as an LLC appeals to me in its ability to limit liability if done correctly. However it makes conventional financing tricky.

Is there a tactic to be able to get financing with rates reflecting my background (salary, credit score, liquid assets, etc) while also getting some of the liability protection that a well formed LLC provides?

@Marc Rice Ive always been bullish on Colombus multifamily. How has the Columbus market been impacted by Covid? Have folks migrated to or away from Columbus? Is it a competitive sellers market due to lack of inventory and low interest rates?

Some of the FL markets I am involved in have appreciated dramatically due to an influx of folks going to warmer weather for Covid triggered remote work. This leads to a very competitive sellers market and makes the numbers for an investor a bit harder to make work. 

I am under the school of thought that these migrations are going to be largely temporary in relation to things normalizing. It makes these markets a bit riskier in my opinion as there may be a small price correction when folks return to their pre covid cities of origin. I imagine Columbus may not have this particular problem. 

Thanks @Matthew Nicklin for the insights. I remember thinking it was too late to get in on Atlanta 5 years and look at it now! Goes to show the price of trying to time the market! I will continue to do some research in the area.

Thanks  @Aaron Amuchastegui I agree with your hypothesis. I just get nervous when I see the numbers but I imagine with such low inventory and interest rates we are not going to see a large persistent price drop any time soon even if foreclosures flood the market later in the year.

I am going to keep some cash in reserves and start reading up on investing in foreclosures in case this does come to fruition. 

Post: Roast my financial plan!

Patrick V.Posted
  • Posts 15
  • Votes 11

Hey @Aaron K. thanks for the questions.

Yes I mean annual numbers. My projected expenses after leaving my job will be in the $30,000 a year range until I return to gainful employment. I am hoping that the properties I lock in prior to quitting can bring in that much so I do not dip in to savings while traveling around areas with low cost of living (SE Asia, S America and our off grid RV in the states/Mexico).

After purchasing my second property (allocating $130k) I will have a remaining savings of $200,000 which I prefer to not dip in to. While living the nomadic unemployed life I would likely invest this in other value add rentals. 

If these numbers don't come to fruition then I can (1) dip in to savings or much more likely (2) do freelance software engineer work remote and part time. 

I would consider the whole endeavor successful if I can:

1- Generate 30k a year in cash flow from existing rentals prior to quitting

2- Live off of just that cash flow for 3 years. 

3- Over the course of the three years invest my remaining $200,000 in to more solid cash flow rentals

4- Return to work with a larger RE portfolio then when I left and no more angst about spending large portions of time in an office since I had just spent three years on the road.

You are right that a $500k property or multiple properties adding up to $500k would generally not cash flow $20k a year w/ 20% down in those markets from current turn key MLS listings I am seeing. I am hoping that I can get closer to those numbers by hunting for deals and doing most if not all renovation work myself.

@Damaso Bautista your a wealth of good advise today :) 

Thanks for the input. I am honestly ready to start and no longer be on the sidelines, my small house hack is not enough for me anymore :P . I have about $200,000 to invest and I will invest $100,000 with financing prior to quitting my job in 6 months and keep the other $100,000 in more liquid investments so I can jump on the next cycle of foreclosures/housing market corrections.

Thanks @Damaso Bautista! I figure that's the case. I guess I will really have to hustle and pick up properties while also working my full time job. It will be a busy period but it would result in the best rates and future profitability!

Perhaps I can time it right that I purchase a fixer upper and the second the sale is final and I have the keys I could then quit my job to allocate full time to renovating it. 

Hi all,

I am an out of state investor who is looking for a location with solid cash flow and decent population growth/appreciation projections. It seems Atlanta fits that mold quite well and is ranked high for cash flowing rentals

- What are your thoughts on the current market? Atlanta has seen decent appreciation, do you except prices to continue growing or do you foresee a correction in the near future?

- What areas are 'up and coming' and cash flow well that you would invest in? Ideally I would invest in grade B or C areas with good prospects for future development?

- I hear many new companies are moving to ATL and Microsoft recently opened a large branch. Are there any areas near these proposed new companies that are appealing? 

- Did you see a decline in tenant demand with Covid? Has it rebounded?

- Any recommendations for RE agents that work well with investors?

- Is the market competitive and favoring sellers as interest rates and supply are low?

- What types of properties do you recommended? Ideally I would get a value add multifamily as I have enough capital and prefer to deal with one property then various SFRs and I can still get a residential loan as long as the property has 4 units or less.

Many thanks for any input!

Hi all,

I am an out of state investor who spent many years in Tallahassee, FL. I know the area well and have identified Tallahassee as a city with good potential for cash flowing rentals. I have some questions for those who are familiar with and invest in the area. I would likely be looking to invest near FSU and appealing towards college students.

- What are your thoughts on the current market? Tallahassee has seen decent appreciation, do you except the University to continue growing? Do you have decent cash flow with existing properties?

- Did you see a decline in tenant demand with Covid? Has it rebounded?

- I would be looking to do value add rentals near campus, ideally multifamily but those seem rare to find. I am familiar with college students and know the house would have more damage and turn over then non college rental housing. What is your experience with college rentals, how much do you need to allocate for repairs and vacancies? 

- Do you foresee any price corrections in the next year?

- Any recommendations for RE agents that work well with investors?

- Any recommendations for property managers that are quality and cost conscious?

- Is the market competitive and favoring sellers as interest rates are low and many folks have migrated to FL through Covid?

- What types of properties do you recommended? Ideally I would get a value add multifamily as I have enough capital and prefer to deal with one property then various SFRs and I can still get a residential loan as long as the property has 4 units or less. However it seems most properties here are going to be SFRs.

Many thanks for any input!

Hi all,

I am an out of state investor who spent many years in Tallahassee, FL. I know the N Florida area well and have identified Jacksonville as a city with good potential for cash flowing rentals. I have some questions for those who are familiar with and invest in the Jacksonville area. 

- What are your thoughts on the current market? There has been a hug influx of folks since COVID and it seems property has appreciated dramatically and the market favors sellers, is this true? 

- Do you still see opportunity for quality cash flowing rentals? If so which neighborhoods are up and coming (I hear Avondale and Riverside are favorable)

- Do you foresee any price corrections in the next year?

- Any recommendations for RE agents that work well with investors? 

- Any recommendations for property managers that are quality and cost conscious? 

- What types of properties do you recommended? Ideally I would get a value add multifamily as I have enough capital and prefer to deal with one property then various SFRs and I can still get a residential loan as long as the property has 4 units or less.

Many thanks for any input!