All Forum Posts by: Shane Rasnak

@Dave Meyer Can you provide a quick explainer (separate article, video or text boxes within the spreadsheet) for the downloadable spreadsheet in these reports? It'd be helpful to understand how to use and interpret the data, especially in terms of the trends in a particular city/market.

@Justin Windham @Dmitriy Fomichenko Thanks for the quick response. Does relying on non-resource loans significantly limit one's options for bank financing? If I want to use a local lender in the area where I want to invest, is there a good chance I can find a non-recourse loan provider there or will I be limited to a select few banks from elsewhere? 

And if non-recourse loans require at least 30-40%, what's the standard? Is it usually more like 50% or higher, or is 30-40% the standard? 

@Dmitriy Fomichenko How does investing from a Solo 401k affect your ability to use leverage? Can you get approved for traditional loans with 20-30% down payment when investing in real estate properties with funds in a Solo 401k? 

Thanks @Christian Longacre! I'll reach out to Justin. 

@David Ribardo Super helpful, thanks. I will keep looking into these areas. What are the driving forces behind the strong rental demand in Allentown / Bethlehem / Easton? Do you still those trends continuing long-term? Also, how difficult is it to find a good property manager in the area? 

I'm looking to invest in SFR and small multi-families in Pennsylvania, ideally in the $100k-$130k purchase price range.

I'm based in Jersey City, NJ – due to high property taxes and purchase prices in my immediate area (Jersey/NYC), PA seems like the best state to dig deeper for my market research. I'm trying to identify rental markets that I can hone in on and research deeply, establish a team on the ground, and do my due diligence properly.

I've been combing similar posts on BP and potential areas I'm hearing about in PA include Allentown, Lehigh Valley, Bethlehem, Scranton, and Wilkes Barre.

I'm looking for markets with strong rental demand for the foreseeable future, where $100-200 cashflow/unit is possible (with property management), and can reasonably expect some appreciation in the next 10-20 years (2-4% per year would be ideal, though achieving positive cashflow on my first purchase is my #1 focus). Also important is being able to find a reliable property manager in the area.

I'd love to hear from local investors – am I looking at the right areas? Where else should I consider? Is there anything unique to investing in PA that I should be careful about? 

Can rental property investing have tax benefits for the income I earn as a self-employed professional (through my own LLC)? Or is the tax advantage mainly in the equity and cashflow generated from the rentals themselves?

Thanks @Eric Burgh - I haven't started looking at property prices yet but I figure I'll need to look 1-2 hours away from NYC for anything remotely affordable. I love living there though, just moved in this past October after spending 3 years in Williamsburg. Where are you investing? 

Also if there any active groups or meetups in the area please let me know.

I'm new to real estate investing and learning about all of the advantages of investing in real estate vs. paper assets – books like Rich Dad and many articles on BP have made that abundantly clear to me. I'm also getting the sense that most real estate investors think putting money into an 401k, IRA, or Roth IRA is a loser's game – and I can definitely see the logic behind that argument as well.

My question is: if you intend to make real estate investing your primary investment strategy for long-term wealth building, should you also invest partly in a retirement account? Or go all in on real estate? 

My situation: age 30, have steady income from my own consulting business (full-time), debt free, about $15k in savings and aiming to get savings up to $30,000-$40,000 for my first rental property in the next year. I don't intend to go into real estate full-time, and so far I think buy-and-hold with a property management company makes the most sense for my goals. I don't have an employer so I can't do 401k matching.

Are there any advantages to opening an IRA/Roth IRA and putting in a nominal amount (I'm thinking $50-$100/month on automatic payments for the next 20-30 years), or would I be better off putting all my money into real estate? 

@David Lichtenstadter I have – it's a smart strategy for some, but living in NYC it's not really feasible for me to buy a property in the immediate area. I live together with my girlfriend (who works in the city), love the building we're in currently, and it'd be a big step backwards for us in terms of quality of life to move out to the suburbs of Jersey/upstate New York and split a property with others.

Hey everyone – I'm a newbie investor eager to learn the ropes and get myself educated before buying my first property in the next 1-2 years. 

Backstory

My interest in investing was sparked in my teens after reading Rich Dad, Poor Dad, which inspired me to go study business in college (Cornell University) with a focus on accounting/finance. After graduating in the middle of the financial crisis, I started my career in the startup world and discovered a passion for marketing; I helped to start a company with three other first-time entrepreneurs and took over the company's marketing as it grew to ten employees in three years. About 3.5 years ago I left the startup and moved to NYC to launch my consulting business (focused on digital marketing for startups/nonprofits), which I still work on full-time.

Now at age 30 I'm finally in a place where my short-term survival is no longer consuming 100% of my attention, and I have the mental space and cashflow to turn my eye towards long-term wealth building. Which brought me back to Rich Dad Poor Dad for a second read, and with a renewed interest in REI I've found my way here through the BP podcast.

Goals

Financial freedom by age 40 (ten years). While I make a good living from my consulting business and love what I do, I recognize the tax advantages and growth potential of converting active income into passive income (big believer in the Rich Dad philosophy). I aim to be able to meet all of my monthly expenses with real estate income within 5-10 years. Specifically, aiming for $5k/month by age 35 and grow the portfolio to keep up with (or surpass) my monthly needs thereafter.

Currently Seeking

Education and connections (NYC/Jersey City area) to be ready to invest in my first property (most likely a SFR or multi-family) with a buy-and-hold strategy by mid-2019. I'm devouring BP podcast episodes and working through the BP Beginner's Guide.

If there are any members or meetup groups active in the area I'd love to plug in!