All Forum Posts by: Ruchit Patel

I am in the same boat, working in a bay area and investing out of state. 

In general, for people who are saving money through W2, and going for a cash-flowy buy & hold strategy, turnkeys in the midwest is the way. For specifics, let's connect. 

That's a huge step! You must have a strong heart to make a decision to change states to create more wealth using real estate. 

Were you in university before this job? Then, the 2 years requirement is not strict. 

Do you have any other income source? Even without a job, if you have a strong bank statement or personal business balance sheet, the loan can be obtained. If the house cash flow is nice, there are some lenders you can convince to lend money if you have good credit. 

I say, keep calling lenders all over the USA, someone will say yes. 

I have been investing out of state. I am also in the bay area, CA. 

Everyone's situation and risk tolerance are different. As per your budget and future goals, properly advise can be given. 

Let me know if you want to talk more. 

Hello Tracy,

Good luck with your journey.  

What is your question here? 

--Ruchit

I like where your mind is about using the first two houses' appreciation to buy your dream house later. 

If you are not planning to quit your day job any time soon or you don't need extra income, then the cash flow is not a big deal, however, to compensate for vacancy and repair, cash flow can become handy. Check to see if the W2 income you make is more than enough to cover that. 

Do you have already has city or deals in mind to buy? If the city is not growing in trendy jobs, then you might not see a good appreciation. 

In sum, sounds like you have the right mindset to manage money, keep learning more, and you will do good.

Oh one more thing, don't count out the idea of house hacking too. 

( just my 2 cents )

If your investment property will cash flow and if cash flow is more than the interest on HELOC, it would make much more sense to do it now than wait one year.

Speaking of banks not replying, what I do is, I just drive to local credit unions, and sit with their employee for a few minutes. The fastest way to get answers and make connections inside the bank at the same time!!

If you can find a lender who is willing to land good money, then it's a jackpot! 

Commenting to follow this journey, please keep your progress posted here. 

I could never find a lender to lend money on non-agriculture land. Borrowing money against farms for non-farming expenses, that something is also not that common.  

The USA is full of great markets to acquire rental properties. If jobs and the population are increasing, real estate has to go up in capitalism/free-market/democracy. America has that. 

Now based on your current budget, future goals, and preferences, a specific answer can be given. If you want to elaborate on that...

Hello Eric,

Congratulations on the closing and for the cash you have. You are in a sweet position. Message me and as per your goals, I can share juicy deals I did recently as well as some of my contacts with you.

In general, if you like maximum cash flow, turnkeys in the midwest are the way to go, I know a team for that too.

If you can wait around 18 months, then build to rent is the way to go, that will boost your net worth significantly, sometimes 100% ROI in 2 years on your $75,000.

--Ruchit

I agree with Scott. If you look enough around, you will find old/wise guys willing to feel proud of your success. 

Many times people have something to sell or they are trying to make money out of you, so it gets trickier to get proper advice. Nowadays, social media is filled with scammers. 

For general questions related to finance or economics or tax or real estate, I can help too. Feel free to message me. I am not a real estate professional neither I have anything to sell. Naturally, I enjoy educating.