All Forum Posts by: Simon Ashbaugh

Hi, I'm new to real estate investing and would love to get some guidance!

Hello BiggerPockets community,

My name is Zlata. I am new to BiggerPockets and real estate investment.  I am looking to invest in my first investment property sometime next year. I live in California but am looking to buy out of state as prices here are very high. I'm in the market research state right now.  I'm thinking North Carolina, Georgia, Tennessee. Are there any other markets I should be looking in with good landlord laws, lower property taxes, property appreciation, etc.? Any feedback is appreciated.

This will be my first flip. How do I stay within the 2month time-line? What do flippers do first,, second, third, etc..

Just like the title says I am looking to select a market to purchase my first property. I live in Southern California and it's almost impossible to make an investment that will cash flow here so I'm fine going else where. I'm trying to figure out "what I don't know" that I should know before selecting a market. Obviously having a market where the price to rent ratio is favorable but what other metrics (or non-hard data) should I be looking for?

Other than price to rent ratio, I know I should consider how it will appreciate over time but I was hoping to hear how some of you guys decided on your markets (when they weren't nearby). How did you take all factors into consideration fairly?

I have a max of $100,000 I'd like to spend on this investment as it's my first. Preferably I'd spend half of that on my first one and get comfortable with the process and then do another for that same amount or go up to the full $100,000 amount. I share this as I know this disqualifies me from a lot of markets. Let me know what other information you'd like me to share that will help with any advice you have.

Thanks so much in advance and if I am breaking any of the forums rules I apologies. It's my first post here.

-Jon

I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

Any advice based on experience would be great. Thanks!

Right now, I'm pending a duplex for a client: 3241 N College Ave. I cannot reveal the contracted price as that's not allowed but asking price was $410,000. Mortgage is around $2500 when you factor in taxes / insurance / some seller help with paying down some costs. The rent for the tenanted side will be $1500. 

All in all, he's looking at a live-in monthly cost of around $1000 to live in half the side of a large $410k duplex in Indianapolis. 

I still get people telling me, "House hacking won't work now." But my response is, reducing your housing payment, while still paying down the mortgage and receiving appreciation IS the win. 

My question is, would you do this deal as a first time investor? Do you think house hacking is viable in this market? 

Quote from @Noah Corwick:

Hey David, 

Welcome to BiggerPockets! Thats great that you are ready to take action and get into real estate investing. 

I am an agent and investor in Arizona, and definitely am not an expert in Idaho's market. So my thoughts are from a general standpoint and not your specific market's standpoint. 

I would agree with the two other gentlemen who commented, I would get into multi family and house hack it. It might not cashflow now, but once you refi in the near future, you'll be glad you picked this route, especially if you find one in an appreciation area. This is setting you up long term. A short term sacrifice (negative cash flow) for a long term gain. 

And even if this wouldn't cash flow at this exact moment, having others pay most of your mortgage is still a win. 

Best of luck! 

@Simon Ashbaugh and Noah, I talked to my lender in Idaho and it sounds like he said house hacking a multi unit property in Idaho is out of the picture. When I asked him if it was possible he said: "No, you need 25% down with a conventional and 3.5% down if you do FHA but it's virtually impossible to do FHA multi unit deals right now. They have what's called a self sufficiency test where the rents have to cover the mortgage and with rates so high, it's extremely difficult to find a deal where the numbers can work." I know he has done such deals in the past but policies must have changed. Maybe there is a loop hole or something he doesn't know but I trust him as he is the guy that does the financing for most of the investors here. Thanks for everyone's imput.

Here's a question for people here, do you guys think Californians will continue to leave California and will eventually end up in the midwest? There are some beautiful places in the midwest and I could see California continuing to bring appreciation with them. I think thats a big reason why Idaho and Arizona saw so much appreciation.