All Forum Posts by: Porter Linton Anderson

I suppose if you have some concrete evidence that it will get to a point where it is cash flowing well this could be worth it. If that is the case it is basically you spreading out the money you would spend on a downpayment over time with the negative cashflow but, that feels way too risky for me in the current market. You are betting that it will turn around and start cash flowing or appreciate in value enough to make the deal worth it. Maybe you have more tolerance for risk and are extremely confident in your projections but, there is no way I would move on a deal like this.

Really make sure you do your research on this one. This is just asking for upset tenants looking for a way to get back at you afterward.

There are a ton of markets that can get you what you are looking for but, building a team in the market you pick is the most important step for your growth by far. Be sure to really vet your potential agent and property managers is the best advice I can give for out of state investing.

Living in a market that provides more appreciation and is difficult to cashflow in I of course have invested in more cashflow focused markets. I have worked in a few other states like Ohio, and New York and chose them specifically because they provide lots of opportunities to find cash-flowing properties that are much harder to find in the market I live in. I think that is probably the most common reason people look to invest out of state, the cashflow and lower entry point to invest. When starting out I was very hesitant to invest in a market so far from me but, overcame a lot of that fear by paying the city I was investing in a visit and meeting agents and managers face to face. 

I actually did the same thing with my primary and ran into way more unexpected costs and time stoppages than I originally thought. I think bringing in a professional who has done something similar before is gonna be crucial to understanding the numbers and if it is going to be worth it for your situation. That being said we struggled a bit to get to the end but, now we are covering the majority of our living expense and didn't use the other space anyway so a big win in my book!

I'm definitely in the boat that isn't really looking to quit my job but, wants to reach a more comfortable spot financially that I feel I have multiple options in the future. And with a growing family that I want to spend as much time with as possible the drive grows even stronger!

Best move would be to talk to local agents and property managers. The BP estimate I have found default to the property being one rental so thats what I would assume is making the big gap between the two estimates you have so far. Connecting with people in the market that often deal with rentals will give you a much more accurate estimate. Best of luck!

Wheelbarrow Profits - How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing by Jake Stenziano and Gino Barbaro. It certainly isn't as life-changing/mind blowing as other books that are thrown around but, I really liked the very easy to understand concepts and thought it was a super helpful book for understanding fundementals of multifamily investing for a beginner.

This sounds soooo familiar to me. I am an agent in Utah and have rentals in other markets across the US and once had an agent that did almost the exact same things to me. Added to a list and left me to fend for myself when finding deals and took forever to reply on certain things. I found that being completely straightforward with her was the best solution. I told her flat out that her drive was severely lacking and that I felt I could find a much more helpful agent. I gave her a sort of ultimatum that if it didn't improve over the coming weeks that I would have to move on. I hoped she would get the idea but, nothing seemed to change... So I did what I said I would, I let her go. I made her aware of the issues and didn't feel bad at all when she still seemed to not care after our chat. I would recommend doing the same, putting the ball in their court by making them aware of what needs to change really clears you of feeling bad when it doesn't work out and you have to walk away. 

You are providing her with business and if she doesn't want to help you there are loads of other agents who would be thrilled to work alongside you! Best of luck!

The requirements to access depend on the state but, it's almost certainly not worth it to go through the trouble and costs just to have access to the MLS when an agent will be thrilled to help you find deals. Unless you are planning on using it for transactions I would say don't bother.