All Forum Posts by: Scott Davis

Leverage + appreciation is what makes real estate worth the hassle and better than other investment options. If you are looking for cash flow, I'd recommend not investing out of state or in real estate altogether. The 1% rule is a metric from 2014. It doesn't exist anymore unless you are willing to take on the risks of a rough neighborhood.

Even if you go to a cheaper market, buy in the high appreciation neighborhoods. Buy the property that you want to own the most 10 years from now. Get on a plane several times to visit that market and get to know your potential vendors. If you don't get to know them and build some trust, you're just going to be dumb money or "the guy from California" that they up charge 20-100%.

Travis, that is good advice. I'm doing my first deal with a turnkey company and my advisor is telling me the same thing. I'm having trouble getting over the slim margins, but it sounds like cash flow isn't necessarily king anymore.

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Indianapolis, Indiana

Quote from @Todd Anderson:

@Scott Davis,

I would totally agree with @Eric Gerakos thoughts.

The investors that I work with are looking at investing on the 1-2 per year plan. let the property season, for 1-4 years depending on market, and then get the equity out and do it again.

I have found working with these investors that if they focus on New Construction Investing they are able to not only keep their costs down but the properties appreciate better because the comps are new. It sounds like with the capital that you have for the investment you would be able easely look at small multi family which would not only cash flow better but I have found that new construction duplexes and quads proform very will in appreciation.

If you are finding the right market the ability to scale will be there. It will need to be done slow and steady but if done with quality properties, in 5-10 years you will have a very strong portfolio.

Best of luck.

Thank you, Todd. This makes sense. I'm going to be 50 so patience is a challenge, but I will work on that!

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Thanks, Ty. Right now I'm pulling the trigger on a property in Dallas. I'm actually going to start with a turnkey property. I found a good company/portfolio advisor to try out.

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I am new to the investment space and want to pursue a buy and hold rental strategy. I have about $425k that I'm willing to put in. I have one rental property now that was our old primary residence that is finally cash flowing and I have about $100,000 equity in that property. I a analyzing a cash deal for $420 that I will leverage after purchase leaving me with approximately $200k in cash plus the $100k in equity. I plan to buy one or two more properties with the $200k, but then I will be out of capital. That's fine for this year, but how do I scale next year like everyone talks about? I don't want to over leverage my properties especially with interest rates this high, it will eliminate cash flow. What am I missing?

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All Forum Posts by: Scott Davis

Scott Davis has started 1 posts and replied 4 times.

Post: First time REI out of state investor

Post: How do I scale

Post: How do I scale

Post: How do I scale