All Forum Posts by: Peter Dorinsky

Hey Christopher, welcome to BP! A lot of investors have been drawn to the Midwestern markets due to the low cost of entry and a lot of the markets being landlord friendly as well. Columbus in particular is seeing tremendous growth as a result of big-tech companies like Intel and Google expanding their presence here, which is contributing to market appreciation. If long-term appreciation is a part of your investment strategy then Columbus would be worth considering! Happy to connect and chat more.

3 Votes

Quote from @Kyle Allen:

I’m looking to buy my first rental property soon and I’m not sure if I should get a hands on self managed property in Denver metro or a more affordable market out of state.

Entry costs are lower out of state but I have a great Real Estate agent with a vast network I can capitalize on.

Any thoughts?

Buying something turnkey and local that you can self-manage is going to be an easier way to get your foot in the door compared to buying something out of state. If you can house-hack for your first deal that's even better. But if you plan to invest out of state it'll be important to build your core-4: https://www.biggerpockets.com/blog/core-four-real-estate-tea...

I'd also recommend traveling to any out of state market you plan to invest in. It's great that you already have an agent connection, but It will take time to build those other trusting relationships and familiarize yourself with a new market.

1 Vote

Thornton, Colorado

Quote from @Alison Cromwell:

Hi everyone! I am about to turn 21 years old and reside in Maryland. I am looking for a good investment property. I currently have 40k to invest, and am looking for someone to help guide me through the process. I guess my question is, how do I get a loan for a flip when I don't have 2 years of pay stubs.

I'd also recommend looking into house-hacking for your first deal. It's a great way to start out and set yourself up for your next deal and far less risky compared to doing a flip for your first deal.

But to answer your question, you'd probably have to look into getting a co-signer or getting a hard-money loan if you plan to flip.

0 Votes

Quote from @Dustin Owens:

Hello everyone!

Very excited to take this next step in my life to become an investor and build a rental portfolio. A little about myself I'm 32 years old and in a few months will sell my home making $100-110k. I have arrangements in place for a low cost rent while I get things rolling with this. The only debt I have is what I owe on my current vehicle. I gross $110k a year with my current position and I have a lot of free time on my hands during the day. I've spent the last few weeks researching and trying to broaden my knowledge on the subject as well as listening to a couple webinars and podcast. I know Section 8 isn't the most attractive start with investors, but I've grown to believe it can be very successful if done correctly and with the high program rents and long waitlist in NC and surround states it has drawn me to it. I've read all the pros and cons with tenants and the process as a whole. From being thorough in the screening to the annual inspection. I started looking at individual properties and then began looking at small class B portfolios with 5+ units. From here is where I'm looking at expert advice from other investors, Section 8 property owners and portfolio holders. If you were in my shoes with this amount of money what would you do or where would you start? I will say although I have tried to broaden my knowledge I'm completely fresh and new to all of this so any advice or help would be greatly appreciated!

Richard makes a good point. What's the reason you'd rather sell instead of pulling the equity from you home to invest into the next property? If the goal is to accumulate doors, it may be worth considering keeping your current home to either continue living in or rent out. Investing locally will definitely be easier starting out as you learn the in's and out's

1 Vote

Charlotte, North Carolina

Quote from @Trevor Crabtree:

Looking to buy my first turnkey rental. What advice would you recommend?

Hey Trevor, I'd suggest starting local. Build your core-4 and find an investor friendly agent who can find deals both on-market and off. Be patient and wait for a good deal, but also keep in mind that there's value in the experience you'll gain from doing your first deal and getting comfortable with the process.

0 Votes

Quote from @Zane K.:

Hi Everyone,

This is my first time posting so I apologize if this is the wrong forum.

I live in California and like many California Investors prices are just too high in the area I live. I am looking for my first rental property with a goal of Cashflow!

My max purchase price is around 200k.

I have never been to Texas but am planning on making a trip to check the area out. What areas would you recommend for cash flow at my purchase price?

I am open to areas outside of Houston as well. Any insight you can give me is very appreciated!

Thank you!

Hey Zane, like has been said already, it's good to be aware of what you're getting into when buying your first investment property, especially if you plan on investing out of state. I definitely encourage you to visit whatever market you plan to invest in to familiarize yourself with the area and connect with local professionals. I'd also recommend reading David Greene's article on building your core-4 for OOS investing: https://www.biggerpockets.com/blog/core-four-real-estate-tea...

0 Votes

Houston, Texas

Quote from @Caleb Graham:

My fiancé and I are moving from a pretty LCOL city in the midwest to a (relatively) HCOL city in Colorado. I've wanted to do a house hack for my first jump into real estate for quite some time now. The multi-family market in the city I'm moving to has been very slim for the past 6-12 months. Finally, an interesting property has popped up but I don't know if it would make sense in the long term.

Some numbers:

(I know I said HCOL and this may not appear to be that, but coming from the midwest, this was a significant jump)

The avg fixer-upper single-family home is going to run us ~325k and with around $40,000 down and a 6.9% interest rate we're looking at something like $2,400 a month PITI

Now the duplex I mentioned would go for about 100k more and with the same down payment and interest rate we'd pay something like $3,200 a month. This is in a good area downtown and I was surprised to see that rents are only about $1,300 a month.

So from a pure monthly payment standpoint: (duplex) 3,200 - 1,300 = 1,900 > 2,400 (single family)

As you can probably see, this property isn't cash-flowing, let alone breaking even. At this interest rate and with current rents it won't cash-flow for many years. That wouldn't be a problem if we were planning on staying for the next 10 years but eventually, my fiancé and I would like to buy our own private house.

One upside is that appreciation is quite strong in the market I'm looking at, however, I don't know if I would want to rely on that. My hope with house hacking was always that I would be able to buy a multi-family property, live in it for a few years, and then move to my own home while hanging on to and renting the multi-family. Would it be stupid to move out of a house hack that's cash-flow negative? Should I pursue other markets or strategies?

Would greatly appreciate any advice as I'm not really sure what to do

Bill has a good take on this^

That's the beauty of house-hacking, it's a viable option in any market. But like you said, in a HCOL market it is going to be more of an appreciation/equity play. But I will say that it wouldn't make sense to move out into a SFH if you're going to be cash-flow negative, you don't want to be paying for someone else to live in your property. I don't know which city you're thinking about buying in, but if it is a growing and appreciating market it's worth keeping in mind that home-values/rents will most likely go up over time. I would just caution you both not to make any decisions assuming that home-values/rents/interest-rates will be where you need them to be whenever you're ready to move.

2 Votes

Quote from @Kyle Bruce:

I built up my runway and have the skills to buy and rehab in a desirable area near where I live and work and then hopefully rent two rooms out to roommates while saving for my next house.

I’ve been watching the market for two years now and know which houses are good, what they will go for, and how quickly. My LCOL city is one frequently targeted by out of state investors and the good finds are snatched up within 24 hours of listing.

My cousin is a part time real estate agent. He doesn’t share my urgency. I can’t get showings or offers in on time to compete with seasoned investors.

I didn’t realize it would be this difficult. I want to be able to say “I want this house, this is my offer, here are my negotiables/leverage” and have it happen immediately.

Do I need to get my own license to accomplish what I’m trying to do? If not, how do I get my cousin to do what I need him to do? Or, how do I break up with him, and what am I looking for in a new agent?

Appreciate your advice.

Hey Kyle, sounds like it'd definitely be worth having a conversation with your cousin and expressing those frustrations to see if he's willing to accommodate. Unfortunately it's tough to be a part time agent and be readily available in a hot investor market, at least in terms of on-market deals. One option you could also consider is looking for off-market deals, this could eliminate the urgency and you'll most likely find better deals as well. Either you or your cousin could source the deals and then your cousin could broker it with his license. But if you're not wanting to go the off-market route and your cousin is unwilling to accommodate it may be worth finding another agent, specifically one that is investor-friendly.

1 Vote

Hey Bennett, happy to connect and chat more!

4 Votes

Cleveland, Ohio

Quote from @Dana Kristian Gomez:

Hello! I’m Dana and I’m new to Real estate investing. I’m a travel nurse based in Tacoma WA and I’m hoping to get my first rental property this year so I can provide housing to fellow travel nurses. I’ve gone thru the process of home buying with our first home but I’m here now seeking guidance on how to get started with acquiring rental properties and analyzing deals. Goal is to have mid term rentals but I’m also open to long term! Happy to connect and learn!

Hey Dana, welcome to BP! Are you looking to invest locally or are you looking at out of state markets? If you're still actively traveling for your job that's a great way to research markets and make connections with local professionals. If you're not yet decided on a market you'd like to invest in I'd suggesting starting there. If you're still researching, I'd recommend looking into the Midwest markets, especially if you have a travel contract in any of those markets.

0 Votes

Tacoma, Washington

All Forum Posts by: Peter Dorinsky

Peter Dorinsky has started 0 posts and replied 138 times.

Post: Help me decide please

Post: Long distance vs hands on

Post: New Investor Looking for Advice

Post: Advice/ guidance needed starting out with $100k

Post: First Turnkey Property

Post: 200k Purchase Price Seeking Cashflow

Post: Does house hacking in a high(er) cost of living area make sense?

Post: Cousin Agent Doesn’t Share Urgency

Post: Looking to connect with an Agent

Post: New to Real estate - Travel RN