All Forum Posts by: Ryan Klein

This is a very helpful discussion for me, everyone. Thank you. it sounds like you want to shoot for appreciation and equity buy down first, getting positive cash flow as a bonus if you can. I think we will shoot for this, hoping for our cash flow to be just slightly positive, mostly so it's not negative.

Andrew, that's an interesting perspective. Most of the books I've read so far hype cash flow as the main metric to consider when buying a property. What would you suggest as the most important metrics? Appreciate rate? 

@Jonathan Greene, I suppose that if we bought a rent-ready place, it would be harder to snowball with another place later on, since our capital would all be tied up in that one property. Getting that capital back for another property seems to be the allure of a BRRRR. But it brings more risk, I suppose.

@Bruce Woodruff Well, I definitely cannot do the rehab myself! We can manage a contractor, but don't have construction skills ourselves. 

Well, we'll do some thinking. Perhaps if we find a local mentor with rehab experience, we could consider that. Otherwise, a duplex may be our best bet.

Thank you both!

Thanks again @Jonathan Greene. It sounds like you're saying to think longer term, to let things develop. By 2/1 duplex, do you mean a 2 bed one bath? (Very new here, still learning the lingo.) Something simple and low work, instead of a rehab, to get my feet wet without too much risk?

Thanks @Bruce Woodruff. So you'd recommend one good BRRRR, and see where things are after that?

Thanks @Jonathan Greene. Some of the books I've read paint what seems like a pretty rosy picture, so I appreciate this realistic response.  Here are two follow up questions. One, how much capital might you need to start with to get to that goal? Two, what real estate investment strategy might you recommend to a newbie with $50k, if any? 

@Jonathan Greene

Hi everyone,

My wife and I would love to move to a better house with a bigger yard in five-ish years. I want to find out if real estate investment can get us there. I think we'd need to make $3000 a month more than we do now. We have about $50k to invest right now. Is it a reasonable goal to be get to a $3000/month cash flow in five years with rental properties?

Another strategy we might also implement would be house hacking that next house, to reduce how much cash flow we would need.

Thanks!

Thanks guys! @Justin Brown, are you saying the market is still good for rehabs, but it's difficult to rent and get cash flow? Why is that? And I will definitely check out the Lehigh valley group.

Have any new-ish investors had success with a BRRRR within an hour of Philly (from Allentown to Wilmington) ? I am just getting started, and I would be grateful to hear how you did it. What markets did you like? Did you find good PMs, contactors, lenders, etc? I have about 50k of capital to invest, and I'd love to learn from your experience.