All Forum Posts by: Samuel Diouf

Hey Robert,

I think Cincinnati, OH is a great option to look into. With an annual output of $132 billion and a heavy concentration of Fortune 500 companies, the city is seeing continuous economic growth. Homes are still meeting 1% rule here as well, so you will see a good balance of cash-flow and appreciation.

I would try to save up a little and start with 5% down house hacking. Buying real estate with no money down isn't the best beginner friendly strategy, and I have seen people take large losses doing so. If you don't have any money, look into becoming an agent and working with other investors. 

Hey, Max 

If you're looking OOS, Columbus is a great option to consider for appreciation. Multiple, billion dollar companies are investing substantial amounts of money into our area, such as Intel, Google, and Amazon. Which in turn will bring plenty of other investors and general business to the market.

Hey Monir, when looking for that high cash-flow through section-8 I think Cincinnati, OH is a good option to look into. A lot of reasonably priced multifamily homes in the city. 

Quote from @Becca F.:

Quote from @Carrie Matuga:

@Becca F. It can feel very daunting to figure out how to stack your door count to generate enough cash on to leave your W-2. I've found that I've had to get very conservative when I underwrite my own deals to factor in more vacancy (including economic vacancy), higher opex/capex if I didn't do the repairs myself via BRRR, and higher upward changes in taxes and insurance while lowering the expectation for rent increases to something like 2-3%. I'd suggest starting to explore those markets you mention and spending time each day for a month analyzing deals 5 deals per day in a single market. This will help you better understand how they CF and what things are selling for and renting for. You can also balance looking at turnkey vs. value-add properties. In the midwest, it seems like properties are generally more CF than appreciation. In the west, it's the opposite, so maybe an approach could be looking at a portfolio that diversifies by having a mix of CF, Appreciation and turnkey vs. value add properties.

Thanks for the feedback but I'm completely burned out on analyzing deals. I've been doing this for almost 7 months and made 6 offers in Indy. There's no cash flow in CF markets with 7% interest rates - I have been buying off MLS, no tax liens, no deals with wholesalers, subject to etc. I recently learned some new information which is going to steer me in a different direction. A very honest PM told me that how people who profit with Class C properties are buying volume and buying lots of them (the good properties offset the losers). This is risky as an OOS investor especially if you're not a big time multi-millionaire experienced investor who knows what they are doing. Yet these Class C properties are the ones recommended to beginning investors or those of us in California, NYC etc.

Someone else commented about changing jobs. I'm in the best position I could possibly be with my current W2 job - the people who know me know my horrible experiences with previous employers. I have a great boss who's supportive, generally a positive work environment but it can be a lot of work sometimes, and my salary is 30% higher than my previous employer and more than double of what I made in Indiana (Indy rental SFH#1 was my primary residence in a great suburb, moved back to CA).

I also have children and I don't think constantly leveraging and taking out mortgages is a good move (e.g. do a HELOC against my primary, more cash out refis, etc). They and my friends also see the stress I'm under. I don't think there's anything wrong with being a small investor - I have 2 solid appreciating Class A Bay Area properties (one is multi-unit) and 1 Class A Indy SFH but when I hear people on BP, it's constantly about "acquiring more doors". I'm done - for all the money spent on inspections, sewer line scopes, etc. I could have taken my kids on a nice vacation.

I think you need to look at different markets and really think about your goals and reverse engineer from there. Firstly if you wanted cash-flow why would you buy a house in an A neighborhood. Also are you looking at only deals that are on the MLS? Almost all of the fast money will be in finding the right deal. Everything else will be building equity and appreciation. Maybe look into other markets as well. In Cleveland or Cincinnati you can find properties that cashflow over $400. You need to find off-market deals either through sorcing them yourself or working with someone who finds them. 

Hey Brock, that is a great goal to have and through real estate you can definitely achieve it. When finding what market to invest in, I would identify industries with positive growth trends, analyze market reports, industry publications, and economic forecasts, consider emerging markets and technologies.

I live and invest in Columbus and think it is a great option to consider. Multiple, billion dollar companies are investing substantial amounts of money into our area, such as Intel, Google, and Amazon. Which in turn will bring plenty of other investors and general business to the market.

Hey Kyle, I can send you a PM referral for Cincinnati, Ohio.

Hey Jack, 

I think Columbus is a great option to consider. Multiple, billion dollar companies are investing substantial amounts of money into our area, such as Intel, Google, and Amazon. Which in turn will bring plenty of other investors and general business to the market.

Hey Dylan, I think Columbus is a great option to consider. Multiple, billion dollar companies are investing substantial amounts of money into our area, such as Intel, Google, and Amazon. Which in turn will bring plenty of other investors and general business to the market.

I'd be happy to connect and hear what you guys are doing in the blockchain world!

Like what Austin said, I would use the BP calculator. Another important factor is to know the grade of the neighborhood given property is in. Speak to other investors who know the area well and ask them for advice. I can send you a graded map of Ohio!