All Forum Posts by: Peyton From

@Nicholas L.

Yeah a couple reasons:

1) dont have the capital for a down payment even with FHA 3.5%

2) lifestyle reasons (i want to live in SF proper)

3) dont necessarily like the SF market for investing

@Nicholas L.

Yes thats correct. I live in San Francisco CA and invest in Chattanooga TN. Because San Francisco is so expensive, i have ruled out house hacking, which is a bummer because i love that strategy!

@Nicholas L.

Thanks Nicholas. To clarify - the cost to join isnt 10-15k, thats just the total amount i have to dedicate to investing in RE (whether it be directly into my own deal or a portion going to the gator group). Either way I hear your sentiment!

Hi all,

I have recently discovered Pace Morby’s gator community and I am considering joining. From my understanding, its a private community that you have to pay to get acccess to, with many investors that are either seeking private money for their deal or those who have money to lend and are looking for deals to lend on. I have a small amount (10-15k) to invest, and im wondering if paying for access to the group is worth it, or if i should pass and aim to use that money toward a deal of my own. If you are in the gator community I would love to hear about your experience! Thanks

@Eric Lopez

I invest out of state as well and i found a great agent right here on bigger pockets! I spoke on the phone with the agent and asked about their experience specifically working with investors. Contractor wise, i dont have direct experience but my agent has mentioned his connections in the area so i will most likely leverage that when the time comes

@Grant Stuard

Hi Grant,

I have wondered the exact same thing. Through all my learning from books / podcasts, the best method in my opinion for scaling a SFH and small multifamily portolfio is the BRRR method. Instead of putting 20-25% down on each rental, you can create equity thru a rehab and hopefully get your capital back to repeat on the next deal. And even if you dont pull off a perfect BRRR, its likely you will still leave less money in a deal than if you went the traditional route.

@Caroline Gerardo

Thank you for your input. If this is the case - how do investors structure creative deals like sub to? Considering the countless deals that have been done, im sure there must be a way to work out the insurance piece

@Clay White

Hi Clay,

I would suggest searching for local lenders who offer DSCR loans, which dont look at your personal DTI but rather look at the cash flow of the property, or look for a portfolio loan where the lender could be comfortable lending to you even with a higher DTI due to your track record and exit strategy for the property

@Shahnawaz Qadir

Memphis is a great cash flow market historically. I personally invest in Chattanooga TN which I believe to be towards the middle on a cash flow / appreciation scale.

Hi Miguel,

Great to hear you are making the jump to get started! Columbus OH is a great market from what I've read / heard. While I do not personally invest there, I have a family member who owns a personal residence there close to Ohio State and it has been going well. On a macro level, Columbus has a new chip plant coming in town which I believe will drive demand, and the price to rent ratio is high which is great for cash flow.

Best of luck to you!