All Forum Posts by: Ramandeep Sidhu

There are several strategies that new investors with minimal capital can consider when getting started in real estate investing, in addition to wholesaling, such as fix and flip, lease option, rent-to-own, or partnering with other investors. The best strategy for you will depend on your goals, resources, and level of risk tolerance. It may be worthwhile to continue wholesaling and learning as much as you can while you build up your capital, but it's also important to keep an open mind and explore other options as they become available.

If you're looking to buy your first investment property and want a low-risk, hands-off option, you may want to consider purchasing a turnkey property from a company like Memphis Investment Properties. Turnkey properties are typically fully renovated and ready for rental, which can minimize the amount of time and effort required to manage the property. Using a HELOC for the down payment can also be a good option, as it allows you to leverage the equity you have built up in your primary residence to make the purchase. Keep in mind that investing in properties in the midwest may not be as lucrative as other markets, so you may need to purchase a larger number of properties to see a worthwhile return on investment. It's also important to carefully consider your financial situation and consult with a financial advisor before making any decisions.

The mortgage approval process for purchasing a second home as a personal residence while keeping your current home as a rental property can be somewhat complex. Lenders will typically consider both mortgages when evaluating your debt-to-income ratio, and the down payment requirements for a second home may be higher than for a primary residence. However, if you intend to live in the new home as your primary residence and rent out your current home, you may be able to qualify for owner-occupant financing. It may also be easier to obtain financing if you have already moved out of your current home and have a renter in place. It is important to carefully consider your financial situation and work with a lender who has experience with this type of scenario to ensure that you are able to obtain the financing you need.

Class B and Class C neighborhoods refer to the quality and desirability of a neighborhood. Class B neighborhoods are generally considered to be more desirable and higher quality than Class C neighborhoods, but they also tend to be more expensive. In general, Class B neighborhoods are characterized by a mix of owner-occupied and rental properties, with a lower crime rate and higher median income compared to Class C neighborhoods. Class C neighborhoods, on the other hand, tend to have a higher concentration of rental properties, lower median income, and a higher crime rate compared to Class B neighborhoods.

As a new investor, it can be overwhelming to decide between Class B and Class C neighborhoods, especially if you have conflicting advice from your conservative side and your financial brain. One way to verify if a property is in a Class B or Class C neighborhood is to use online tools such as Areavibes.com or Google Maps to get a sense of the neighborhood's demographics, crime rate, and other factors that can affect the value of the property. You can also reach out to local property managers or realtors for more information on the specific neighborhood you are considering.

It is possible to achieve an 8-10% return on investment (CoCR) or $200-$300 per door in a Class B neighborhood, but it is important to carefully assess the property and its potential for profitability before making a decision. Factors such as the condition of the property, the demand for rental units in the area, and the costs of maintaining and managing the property will all impact your potential return on investment. It may be helpful to consult with a financial advisor or real estate professional to help you evaluate the potential profitability of a specific property or neighborhood.

Alex, welcome to the BiggerPockets community! It sounds like you are considering purchasing your first investment property and are weighing the pros and cons of buying a single family home (SFH) to house hack versus a duplex/triplex or rehabbing a property.

There are a few factors to consider when making this decision. One thing to consider is the local real estate market and what types of properties are available in your price range. In a strong market with high demand for rentals, it may be easier to find a turnkey SFH to rent out the extra rooms and generate positive cash flow. On the other hand, if the market is more competitive or if you are looking for a more hands-on investment, a duplex/triplex or a rehab project may be worth considering.

Another thing to consider is your personal preferences and goals for your investment. If you are looking for a more passive investment, a turnkey SFH may be a good option, as it will require less time and effort to manage. On the other hand, if you are interested in a more hands-on investment and have the time and expertise to manage a rehab project or a multi-unit property, those options may be worth considering.

It's also important to carefully review the terms of your VA loan and understand any requirements or restrictions that may apply to your investment. For example, if you are required to live in the property for a year before renting it out, that may impact your decision on what type of property to purchase.

Ultimately, the decision on which property to purchase will depend on your individual circumstances and goals for your investment. I hope this helps, and I wish you the best of luck with your real estate journey!

It sounds like you are considering whether to rent out or Airbnb your 3 bedroom, 2 bathroom townhouse in Mesa, Arizona.

There are a few factors to consider when making this decision. One thing to consider is the local rental market and what similar properties are renting for in your area. If you are able to rent your townhouse for $2200 or more per month, it may be a good option to go that route as it could provide a steady stream of income and potentially help reduce your overall housing costs. On the other hand, if the rental market is not as strong or if you would be unable to rent the property for a high enough price to cover your costs, Airbnb could be a good option to consider.

Another thing to consider is the level of effort and time required to manage each option. Renting out a property typically requires less management and maintenance than Airbnb, as you will typically have longer-term tenants who are responsible for taking care of the property. Airbnb, on the other hand, requires more frequent turnover and may require more of your time and effort to manage.

It's also worth considering the risks associated with each option. Renting out a property carries some risk of default or damage, but Airbnb carries additional risk as you are dealing with a higher volume of shorter-term guests who may not have the same level of personal stake in the property.

Ultimately, the decision to rent or Airbnb your townhouse will depend on your individual circumstances and priorities. If you are looking for a steady stream of income and are willing to put in the time and effort to manage an Airbnb, it may be a good option to consider. However, if you prefer the security of a longer-term tenant and are willing to potentially take a small loss on your mortgage, renting out the property may be a better fit for you.

Thank you for your question and welcome to the BiggerPockets community! It sounds like you are considering investing in a property in Orange County, California and are weighing the pros and cons of purchasing a condo/townhouse with an HOA versus saving for a single family home without an HOA.

There are a few factors to consider when making this decision. First, it's important to understand the local real estate market and what types of properties are available in your price range. In a high-demand market like Orange County, it may be difficult to find a single family home that fits your budget, especially if you are looking to avoid asking family or friends for financial help. In this case, a condo or townhouse with an HOA may be a more realistic option.

On the other hand, it's also important to consider the potential risks and costs associated with owning a property with an HOA. HOAs can be a good thing if they are well-managed and provide valuable amenities and services, but they can also be a source of additional fees and restrictions that may not be present in a single family home. It's important to carefully review the HOA rules and regulations before making a purchase, and to understand the potential costs and benefits of owning a property with an HOA.

Ultimately, the decision to invest in a property with an HOA or not will depend on your individual circumstances and priorities. If you are looking to get started in real estate investing and have limited funds, a condo or townhouse with an HOA may be a good option, especially if you plan to house hack or live in the property for a year before renting it out. However, if you have the means to save for a single family home and are willing to wait for the right opportunity, that may also be a good option.

I hope this helps, and I wish you the best of luck with your real estate investing journey!

To get started, I would recommend researching the local real estate markets in both Atlanta and Puerto Rico to get a sense of what types of properties are available and at what price points. You can use online tools like Zillow or Redfin to search for properties and get an idea of what is on the market. You may also want to consider joining a local real estate investor group or attending local real estate meetups to connect with other investors and learn more about the market.

In addition to researching the local markets, it would also be a good idea to review your financial situation and determine what type of investment makes the most sense for you. For example, if you are looking to house hack, you may want to consider a single family home in Atlanta that you can live in and rent out the extra rooms to cover some of your mortgage payments. If you are interested in flipping, you may want to consider a property that needs some work and has potential for a good return on investment.

As far as educational resources go, there are many websites and forums that offer information and advice on real estate investing. Some good places to start might be the BiggerPockets forum itself, as well as the Real Estate Investors Association (REIA) and the National Real Estate Investor (NREI).

Overall, the most important thing is to do your due diligence and make sure you fully understand the risks and rewards of any investment you are considering. Good luck with your real estate journey!

My wife and I are having a similar situation.  We have been house hacking and it has been great, but now we are on to the next chapter and the debate is... stay house hacking and buy another investment property or buy a personal home and enjoy the privacy.

We still have not finalized a decision, but we are currently charting out the pro's and con's.  We are also discussing delayed gratification and the extra funds to do "Fun Things" (travel, openly shop, etc).

I recommend breaking down the benefits and the negatives, while also laying out what the next 5, 10 and 15 years will look like if you go one route over the other.

It's recommended as a reference to your potential sellers.  I have had many sellers check my website as a source of "legitimacy".  

I would not create a website and depend on it for your leads (that is a plus), but I would have one to reference and send to your potential sellers.