All Forum Posts by: Pope Lake

Fellow investors! I am eager to buy a multifamily, buy and hold rental property! 

My question is: If your current market is undesirable to invest in, how do find the best market out of state?

I currently live and work in New York City, but due to the market being too expensive for me personally, I've pretty much ruled out investing here. There are a number of other markets I'm currently thinking of.

I'm going to provide my thought process for each so bear with me... 

Columbus, Ohio

1. I grew up in the area, have friends and family here, and know it like the back of my hand.
2. I know that the market is doing well - with a good volume of multifamily homes (quads in particular) that you're able to purchase that meet the 1% rule. 

Birmingham, Alabama

• My parents moved here shortly after I graduated college in 2017, and they are supportive of me investing in real estate.
  
• I have a very knowledgeable family friend who is a real estate investor here, who would be willing to mentor me.
• I am not as knowledgeable of the area. 

Washington, DC / Virginia / Maryland Area

• I travel to DC often for work, and I went to school here. 
  
• I imagine multi-family properties may be more expensive, since it's more of an urban center.
• I have a good understanding of the layout in DC, but very little knowledge of the surrounding area - which would include properties that'd likely be more affordable. 

Overall, the drawback for Cbus and Birmingham is that they are much farther from me than DC. DC is relatively agreeable in this regard, as it's a short train or bus away, and I'm there almost every other week. In Cbus and Birmingham, though, I might have more support given my knowledge of the areas or close relatives who'd be willing to support me.

What do you think? 

Also, if you have any thoughts on the state of the market in each area, this is welcome as well. Thank you in advance for your time! 

@Remington Lyman makes sense! Thank you Remington

Can someone explain a cash out refi? I know what a refinance is roughly but for the life of me am having a hard time wrapping my head around the “cash out concept of this”.

Do you have an example of how you used this method for yourself. Thanks in advance for your help!

@Jon Schoeller! Thanks for your feedback sir! Great to hear your story, helps me to get to the next stage myself. Have been reading indeed, but the next step will definitely require engaging with those who have the experience. Best of luck with everything!

@Nicole Heasley you are right about the complexity of property transactions with that setup.

And interesting to know that conditions are like that - especially when it seems to be so different just a bit away in cbus like @Remington Lyman is saying

Trust that you’ll get through that environment with some finesse and added experience!

@Remington Lyman Awesome - I grew up in Reynoldsburg, so great to hear about the cbus market. I live in nyc now but I was considering it as a targeted market - imagine its MUCH cheaper than nyc and more in my price point just starting out.

Cool that you were able to convert into additional units!

Since you’re looking into multi family properties, what do you estimate expenses like utilities being monthly for these types of properties, and if you’re normally paying out of pocket or tenants are paying? Was doing some calcs on coc roi for a duplex near Bexley the other night, so I’m curious... Thank you!

Fellow REI universe - when getting started out, what were the steps you took that ultimately led you to your ultimate strategy, your niche?

I recently have started to read a lot, watch videos and listen to BP podcasts. I'm learning a ton of information, but how did you get from consuming real estate information to ending up in your first deal? And feedback / guidance is appreciated. Thank you! 

@Nicole Heasley ! Thanks for your feedback! Will check this app out as well. Can understand how it’d be ideal to have separate accounts for each property, but know it isn’t the most feasible.

I actually hail from Ohio (Cbus) and have an aunt who lives in Cleveland. How’s the market right now, and has it at all influenced your strategy?

@Alexander Knowles @Josh Bakhshi Thanks gents! Great advice and will check out the software

When setting aside money for expenses that aren’t necessarily incurred monthly such as capex, repairs and vacancy - where do you store these funds?

For example, is there a separate account that you maintain and lump all of these amounts in? More broadly, what are tools you use to keep your REI finances organized in general?