All Forum Posts by: Simon Ashbaugh

Hi Christie, welcome to BiggerPockets! This is the perfect platform to kickstart your learning about real estate and expand your network. 

Here are some options to consider:
1. Traditional Mortgages
- These offer stability and predictability, great for established investors. However, their renovation cost limitations might require exploring alternative avenues.

2. Fix-and-Flip Loans
- Tailored to your project needs, potentially covering both acquisition and rehab. Be mindful of potentially higher interest rates and shorter loan terms.

3. Hard Money Loans
- Promise rapid access to capital, but with significantly higher interest rates and stricter repayment terms. Best for short-term projects with confident, quick exits.

4. Private Lenders
- Can offer tailored solutions with potentially lower interest rates than hard money. However, thorough due diligence and careful consideration of legal complexities are crucial.

The optimal choice highly depends on your specific project and risk tolerance so keep that in mind. Hope this helps!

Hey Vinay, this will generally depend on your specific goals. While your focus on Cincinnati is great, there are other strong contenders in the Midwest. Columbus, for instance, has rising property values, making it a great market for long-term buy-and-hold strategies or even property flipping. On the other hand, Cleveland offers attractive rental yields and entry points, making it ideal for investors prioritizing cash flow. 

For financing, aim for a 20% down payment to minimize loan risks. It's essential to develop a budget, automate savings, and explore potential side hustles. While alternative options, such as a lower down payment, can be considered, be cautious of potential downsides like higher interest rates and limited repayment flexibility. It's advisable to explore traditional mortgages with competitive rates as a primary option

As for finding a PM, try to chat with their actual clients if you can do so. Ask for feedback that they might be able to provide, confirm things like:
1. How fast do they fix stuff? 
2. How much do they charge for repairs? 
3. How quickly do they find new tenants? 
4. Have they ever had a property sit empty for a long time?

With these, you'd be able to make informed decisions about your REI journey! If you'd like to know more, let's connect. I'd be happy to share and help out.

Hey Maria, welcome to BiggerPockets! Building a foundation as early as now is a great move. You're absolutely right that it's a vast and ever-evolving field. So, don't worry about feeling overwhelmed, that's just perfectly normal. As for your focus, those three are essential. Networking connects you with experienced investors and mentors, reading expands your knowledge base, and asking questions sparks critical thinking and clarifies what you need to know. Never hesitate to ask questions if you don't understand a thing as its a crucial part of your learning process.

While it's good to explore different real estate aspects, choose one or two areas to delve deeper into initially. Mastering the fundamentals in a specific area is more valuable than having a shallow understanding of everything. Also, don't worry about missing out on current deals. There will always be new opportunities. Focusing solely on the present market can lead to impulsive decisions.

Its also highly recommended for you identify a strategy, pick a market that matches that strategy, build your Core 4 specially when you're doing out of state investing https://www.biggerpockets.com/blog/core-four-real-estate-team

The main challenge I observed is that individuals often lack a clear end goal or strategy, or they select a market that doesn't align with their chosen strategy.

Lastly, find a mentor, one that aligns with your goals. You may seek advice from lenders and brokers, most will be able to provide one. Consider how you can add value to the mentor-mentee relationship by leveraging your strengths. Building your network takes time and consistency. Be real in your interactions, share your goals and don't be shy about giving back. Relationships are a two-way street and the more you invest in others, the more likely you'll get valuable insights and support in return. Hope this helps!

Hey there Christian, glad to see you preparing for your real estate journey.House hacking is a fantastic way to break into real estate investing while living rent-free and building equity. Your background shouldn't be a barrier to your success. Keep in mind that many investors come from various backgrounds and achieved financial freedom through real estate. With effort, research, and time, you'd be able to make your dream a reality.

For starters, here are some tips I could share with you:

1. Work on your numbers - calculate potential cash flow and ROI. Factor in all your expenses such as property taxes, insurance, repairs, maintenance, repairs and potential rents.
2. Start small, while a triplex or quadplex could be ideal down the line, starting with a duplex can be a manageable option while you get used to being a landlord.
3. Thoroughly screen any potential tenants to minimize risks and ensure your investment is protected.
4. For young investors like you, an FHA loan can be a smart move with its lower down payment requirement. Just remember the occupancy requirement, so make sure that aligns with your plans.
5. Being a good landlord will always bear fruit so it's best to always be on top of every issue that arises. A timeline to resolve each of them when the time comes will help and keeping a very satisfied tenant will generate that solid cash flow you're aiming for.

There are tons of resources available to help you learn more about house hacking and real estate investing. Check out the BiggerPockets Podcast for a library of great information. Hope this helps and best of luck to your real estate journey!

Hey Katelyn, welcome to BiggerPockets! The rental potential looks promising with a potential gross yield of close to 50% based on the figures you mentioned. However, before getting too hyped, it's always wise to remain cautious and do your due diligence before making any final decisions. Carefully inspect the property for any potential repairs or upgrades needed. You'd have to factor in these costs to your calculations and also carefully review your purchase agreement including tenant rights, repairs, and responsibilities. It is essential that you know these.

Take detailed notes when you go see the property. Ask plenty of questions and don't hesitate to walk away if something doesn't feel right for you. Hope things turn out well, all the best!

Hey Kendal, I've got a list of Contractors who've been a big help for my investors when acquiring properties. Let's connect and I'll send it your way.

Hey Himanshu, Columbus would be a standout choice. The city has been experiencing impressive property appreciation surpassing the national average. Plus, Ohio's landlord-friendly reputation really boosts its overall appeal. It's an enticing spot for anyone wanting to make strategic moves in the real estate game. The next thing to do is for you to build your Core 4. Would love to connect if you need to know more. All the best!

Quote from @David Miller:

Hello, New guy Dave here! I'm new to real estate investing and I'm looking to pick people's brains on the best way to get going. I have around $40-50k to invest and I've been looking in the Ohio market for long-term rentals & possibly section 8. Open to other markets as well, but wanted to meet some people who can lend any bit of advice they can. 

Hey Dave! Welcome aboard! Cleveland's a gold mine for steady cashflow. With long-term rentals and Section 8, both have their pros and cons. Long-term rentals have higher rent potential but tenant screening and management can be a doozy. With Section 8, you're bound to get a guaranteed income but red tape and challenges abound. It'll all depend on your risk tolerance, time commitment and financial goals.

To succeed on this, finding the sweet spot would be key. For starters, look for areas with thriving rental demand, potential for value growth, and decent job opportunities. I'm in Ohio and I've got the 3 major cities mapped out by neighborhood class. If you need to find a good place to start with, let's connect and discuss how I can help out.

Hi Grozie, looks like you've already got some experience already. I would meticulously calculate the potential cash flow and ROI for different property types in your desired areas. Factor in all expenses like taxes, insurance, maintenance, repairs, and vacancy rates. Tools like BiggerPockets' rental property calculator can be your friend here.

While you have a decent amount to invest, it's essential to choose your property types wisely. Don't solely focus on triplexes or fourplexes. Explore smaller multi-units like duplexes or even single-family homes. Analyze the market and target high-demand areas for better rental prospects. Do some research on local zoning regulations and explore possibilities for accessory dwelling units. Understanding the local regulations will guide your property selection and investment strategy very well. Stay committed to your goal but be flexible in your approach. Real estate is dynamic and being adaptable to market changes is crucial for your long-term success. Hope this helps!

Hey there Terrell, welcome to BiggerPockets! While it is accurate that relying on family members to cover expenses during your absence can have a positive effect on your cash flow and accelerate mortgage repayment, there are potential challenges that need to be taken into account. Managing a property from afar is complex, dealing with remote repairs, maintenance, or tenant issues is no walk in the park. Picture handling plumbing problems over the phone or trying to find reliable handymen from a distance. What do you do then? That's where your "Core 4" comes in.

Trust a specialized Deal Finder for the perfect property, a proficient Property Manager for tenant matters and maintenance, an optimal Lender for financing, and a trusted Contractor for repairs or renovations. Having this system in place can be beneficial for you.

Also keep in mind that the market can be tricky, even in good areas. Consider all costs like taxes, insurance, and vacancies. Other investments with similar returns might be easier to manage and less stressful. Weigh the pros and cons carefully before making a final decision. Hope this helps!