All Forum Posts by: Sundeep Amin

Hello again,

I just wanted to quickly follow up:

@Mike D'Arrigo Thanks for reaching out, I've been reviewing your site and materials and am very much in line of your analysis of out of state investing and turnkey operators, I'll definitely stay in touch.

@Jon Gable Thanks for reaching out, lots of stuff to absorb being a fellow newbie. Florida and the Carolina's are on my master list, but maybe a little lower on the priority list. That being said, I would welcome and appreciate any insights on what you've been finding.

@Rob K. Rob, great post! I think you hit on the biggest issues those of us contemplating out of state investing have. Great tip on looking out for getting hit with any kind of California premium. As to the other things you definitely need to put your trust in your team, which means you need to find a solid team, and then stay on top of them. I think that's one of the more daunting things in going forward with out of state investing, but I think I'm comfortable with that risk, once I've done my due diligence and feel confident in anyone I've decided to work with.

@James Wise Thanks for reaching out and sending me some info on your market, I've gotten a chance to look into it and will likely be in touch with some questions.

@Jonna Weber I've been to Idaho twice on ski trips and have had great trips both times. Although Idaho wasn't a main market for me, perhaps it might be something I can try a vacation rental with in the future. Would be interested to hear what the market is like now regardless, you can never have too much info...well maybe you can, but I'd still like to hear what you have to say. :)

@Shawn Holsapple Thanks, good to be here!

@Deepak Jinka Texas is on my list, may shoot you a message to see what you've been finding in Dallas, thanks!

@Ali Boone Hi Ali, I've actually been a follower of your blog for a little while, not sure if I found you through BP or some other way, but thanks for linking to that article, lots of good info there for us newbies! Especially like the scale of risk and return and all the variables that factor into it.

@Brandon Turner Thanks for the welcome and keyword alerts have been set! Also want to say the podcasts are great. I've been working out in Bakersfield, CA driving from San Diego the past few weeks and likely months going forward and have been knocking out a couple podcasts each way. Lots of great insights and well worth the time to listen for anyone who hasn't yet!

@Steve Endress HI Steve, awesome profile bio. You hit on one of my concerns about out of state investing and how people say there's more CF on lower quality places. My thinking is similar to yours with regard to maybe sacrificing some returns for a much higher quality place and hopefully a higher quality tenant. I also feel that the higher quality place will appreciate even in cool markets because of the quality and am glad you seem to be finding that out first hand. Am also interested in how you've set up your financing as I feel I'll run out of my own money much faster than I'll run out of potential investments. Would love to stay in touch and have sent a colleague request.

@Azeez K. Hi Azeez, I'm of the impression Atlanta is cooling off a little, but wouldn't mind being wrong. Keep an eye out for an email or request from me to discuss your market a little more.

@Jen Bowen Hi Jen, I'll def get in touch with you about the Utah market. Glad to hear you left Cali and are doing well out there and would love to hear your take on the RE market there. Love your $100k in passive income goal as well!

@Josh Rich Thanks for reaching out, sent you a colleague request already. Would like to stay in touch as we're both around the same point in our RE journey with similar goals.

Thanks everyone!

@Justin B. Thanks for giving me a little more info. Your numbers look great (~45% CoC?!), and it's also cool to see that you have your process down pretty solid.

I'm a newbie and have yet to take that first investment property dip in the pool, a few more questions if don't mind?

I know it's subjective, but what class of property/neighborhood are you focusing on (ie A, B, C)? How much leverage are you using on these properties to get such a good return for money invested? What type of financing are you getting on these, ie small bank, bigger bank, some other type of portfolio lender?

You deserve to go get some toys!

@Justin B. Can you elaborate on how $100k can get $4k in cashflow as I would sign up for that today, quit my job tomorrow, and buy the only toy I want (a 2014 stingray) next week!! :)

Hi Everyone,

Thanks for reaching out and offering some information. I've already gotten in contact with several of you and will continue to follow up over the next few days. Lots to think about already.

Sundeep

Welcome @Brian Stieler

Lots of new people from San Diego the last few days. I myself just posted my intro post a few minutes ago and have already gotten a lot of great reach outs from experienced BP members like you have in yours.

I think it would also be worthwhile to connect with some newer members on the same path as well. Keep an eye out for a colleague request and good luck!

Hi Everyone!!

This post turned out to be longer than I intended, you’ve been warned :)

I joined BP a few months ago, but just recently started really diving into the site and can’t get enough.

A little about myself, and where I want to go.

I live in San Diego, and was thinking of buying something during the last market crash, but was glad I didn’t since I had no idea about the 1% rule and all the other tips and tricks needed to make sure property cash flowed. That being said, I think I still would have lucked out and gotten quite a bit of appreciation, as the market is up quite a bit since then. My main goal however is cash flow as I don’t want to rely on potential appreciation as an investment strategy. Currently, I still rent.

As luck would have it, instead of buying something for myself, I ended up getting a house in Temecula for my parents (story for another time) and that house has now appreciated 50% in the past 4 years, with most of that coming in the last year. It didn’t meet the 1% rule then, still doesn’t even with the appreciation. Even still, I think market rent would just cover the mortgage if I ever had to rent it out., so that’s a little bit of a plus.

So that’s where I’m coming from, as far as where I want to go…my main goal is to create a stream of “passive” income which at some point would be high enough to cover my humble expenses, thus giving me a choice to do whatever I want, allowing me to quit the rat race being one option. I started on the stock market path a few years back, but haven’t really jumped in before seeing better returns in real estate. Stocks are one way, RE is another to get to the same end goal. Eventually I’ll do a little of both to diversify.

Since this is a RE blog, I’ve come to the conclusion that many California RE investors have, and have decided I have to go out of state to invest. At least for cash flow. That’s fine with me, so the next step was trying to find some good markets where the 1% rule was easily achieved. I’m looking to focus on buy and hold SFHs rentals using a property manager, but would also be interested in teaming up with investors in some of my targeted markets below on quicker deals to build up some capital as I go.

After going through some forum posts here, it looks like several markets have their positives and negatives, with places like Indy and KC being solid for cash flow (my main goal) but low on appreciation (not my primary goal anyway), whereas places in Texas are typically lower cash flowing, but higher on the appreciation front. So the next step is figuring out where to start.

I know the recent hot markets include Atlanta and several cities in Texas, but it seems like those markets are all super hot. I would love to find the next hot place and think I’m going to start looking into the following markets:

Indianapolis or other high cash flow cities – Since my main goal is consistent cash flow over appreciation, I figure I would look to Indy to get my feet wet and go from there. I’ve also heard Kansas City might be another good cash flow city. Any others?

Texas – Even though there might not be the plethora of deals there were a few years ago, the quality of the growth of these markets make them appealing. Some of the areas include Austin,

Dallas-Ft. Worth, Houston and maybe even San Antonio.

Utah – I’ve been reading a few different things recently about Utah showing signs of being the next strong market, with a few solid cities, including Salt Lake City, Ogden and Provo. I like this market as its kind of close to California and I’ve been to Salt Lake and Ogden numerous times on snowboarding trips.

Florida – I don’t really know anything about the Florida market, but have heard it’s also growing so I figure I would at least do some due diligence. And it would be a great excuse to maybe even spend a week out there.

North Carolina - I’ve heard some good things about Raleigh and Charlotte, so they’re on the due diligence list as well.

Some other potential areas of interest include some of my favorite ski area destinations like

Denver, Idaho (Boise and Coeur d'Alene), and Seattle/Bellingham although these are more for my own personal interest and might not really be good investment locations.

I doubt I’ll have time to look into all these markets, and want to start by picking up my first property in a high cash flow market (Indy or KC, etc), and then research Texas, Utah and North Carolina and go from there.

I look forward to networking with the BP community and any help or insights would be greatly appreciated!

Thanks,

Sundeep