All Forum Posts by: Maxwell Lee

Well south of 8th has been popular for the past decade. I am excited to see that spread up to your area!

If anyone is still looking shoot me a PM. I've been incredibly pleased with our cleaner over the past year and would love to help her get more business. 

Just catching up on all these old threads I commented on. @Lesley Resnick that's great! Hope you are near 8th street. Main and 8th is really blossoming!

Hey guys, a year later and I'm back! Took me 10 minutes to find this old thread :)

Anyway, as an update we diversified geographically by investing in Indy. We consolidated as well by selling the DC properties and next week the Tampa one will be sold, putting us roughly at a 60/40 split between Jax and Indy. Our activity in Indy, however, is nearly a carbon copy of Jax. sub 100k rehab properties, good cash flow, gentrifying neighborhoods where we expect to see above average, steady appreciation. I will continue to seek rentals and flips in both of these markets, but now I'm pondering the next step (if indeed one is needed)

I've described in a different thread my desire to reenter a major, potentially high-appreciation urban market. This is something I'll keep my eyes out for and perhaps be ready for during the next downturn. But in this thread my question is whether it would be worth the hassle to enter more markets similar to Jax and Indy. 

Anyone out there who has taken a DIY approach to REI (ie not through turnkey companies) and is actively investing in 3 or more markets (meaning not just holding rentals from once upon a time but still looking and buying in at least 3) care to chime in?

I don't want to do it for the sake of doing it, but rather because there are tangible benefits. It seems the cons are rather obvious (diverting my focus and attention, having to find another network of professionals I can trust, less economies of scale, more travel) and I'm not sure there are a whole lot of benefits. Fwiw, one of the reasons REI has been such a good fit for me is that I am an avid traveler and passionate about cities/urban planning. So I already spend a lot of time studying cities and their history, touring neighborhoods, analyzing how they've developed and progressed, and all that jazz. I've spent years doing this in dozens of cities across the country so it's definitely a passion independent of my passion for real estate.

Look forward to hearing the community's thoughts, especially from the folks investing in many markets. Thanks!!

@Mitch Smith Sorry to hear your story and thanks for sharing. I feel your pain, having been ripped off of about $40k several years ago. Best of luck moving forward! 

(Sent you a PM as well)

@Amit M. Thanks for your thoughts. Yeah I am considering this because I figure if I can identify a neighborhood with the potential then even if it takes 10 years to get past the tipping point I'm still good. Just as long as it's a decent enough C-class to not be a headache in the interim. 

@Van Blackman Yes, I like Dallas and Houston (actually I like Austin and SA as well, it's rare for me to not like a city lol) but it is definitely a projection to assume that they will offer the broad walkable experience that my aforementioned target cities do. I'm considering it but It's another factor to speculate about. 

 Thanks Matt! I was in SD last month (only my second time) and I felt like without a doubt we've got to live in SoCal at some point. It may not work out to buy something, but I'm confident we will spend a good amount of time there in the next decade  so who knows?

@Brie Schmidt Thanks! I know you are a Chicago expert I've enjoyed reading much of the info you share. It seems likely that my answer will be to study and track the Chicago and Philly markets and wait for an opportunity. Considering I used to live in Chicago and my wife prefers it, there's probably a greater chance of that winning out (although I always like to let the opportunities dictate what happens)

@Anthony Gayden @Rob Beardsley Because of my own experience, it is tough for me to separate my own desires from a good investment, but I hear what you're saying. The thing is, if it never is a good investment I will simply rent. No qualms about that at all. Even with more than enough resources to afford exactly what we want to buy, I'd still probably put that money to use elsewhere if it makes more sense to rent. Certain life events could change that outlook, but for now as far as I can tell we have no desire to own if it's not also a good investment long term. Re: Pittsburgh...I love Pittsburgh! Probably my favorite place among its peers. But it's not really at the level of what I'm looking for. Dallas and Houston are much better possibilities, if they continue to urbanize and expand mass transit (which looks promising on both fronts) then I could really see that. 

Since you got me discussing other options I'll say Atlanta, Miami, Minneapolis and San Diego, on their current trajectories, all have a good shot. Also Phoenix, but it's one of the few places I haven't been to multiple times so I'm not speaking from personal experience. Baltimore has an outside shot as well, although it is on the small side so much of that is owed to its connectivity with DC as well as my soft spot for it (from personal history). 

Still though, Chicago and Philly feel the most appropriate. Please continue to share and talk to me if I'm missing something!!

@Ali Boone @Charlie MacPherson Thanks for your replies!! 

I think "early" is relative, yes they've matured already but 20 years from now we might look back at this time as "early" if they boom again. Also, I am asking this question now so I can keep certain areas on my radar and track their progress, but not cause I'm buying there now. I'm happy to wait for another major downturn, if it comes, as I am in no hurry whatsoever. 

@Jay Hinrichs Vegas has always been very intriguing to me for retirement, but I just don't think it's gonna reach the level I'm seeking in a decade. Portland is borderline as well, but definitely something to think about! It could be the "affordable" bastion on the west coast. I wanted Sacramento to be that but while it is nice, after spending some time there I decided I'd rather shell out for the Bay area than settle for Sac. Might be a similar dilemma in Portland lol. 

My wife and I have done a fair amount of investing in cheap cash flow markets. Aside from two condos in NoVa, the second of which was sold earlier this year, we have no experience in high appreciation markets. We wish we didn't have to sell them, particularly the second one that was ideally located by a metro station in Arlington, but it was probably necessary. 

Anyway I'd like to be able to get back into a similar market for the simple reason that a decade (or more) from now I'd like to have a property in a desirable, urban neighborhood of a major American city. I'd love to have a place that we can live in, or at least vacation in, if it makes sense as an investment. That's the key. If not, we can always just rent. But boy would it be nice to find something that we can get in on early and enjoy when we want to for many years to come. 

So what kind of market/neighborhood am I talking about? Imo, today, I'm interested in NYC, Boston, DC, San Francisco, Los Angeles, Chicago, Philly or Seattle. A vibrant, walkable neighborhood in a diverse, cultured, major metropolis. (Yes Seattle is a bit borderline and kind of is a gateway to the next tier) What kind of property? Really anything is fine as long as it fits into the type of neighborhood described above. 

I'm assuming Chicago and Philly are my only realistic options for finding a sensible long-term hold...something that isn't already overvalued, overheated, and can possibly cash flow. But happy to hear any thoughts from anyone who has experience in these metro areas. Also open to thoughts and speculation on cities that could become what I've described. Thanks!!