All Forum Posts by: Steve Reutzel

Thanks Danny, I appreciate it... I'm all about OOS, but I'm not into the 70-100k properties.  I've read a few of your posts and I believe (correct me if I'm wrong) you have a focus on Section 8 properties.  I've known some people who have done well in it, but pre-2008 I bought about 10 units and rented largely S8 and it nearly ruined me.  Financially set me back a decade or more.  The tenants just destroyed the properties... so if I made $150/month in positive rent, I'd lose it while waiting for new tenanats (the turnover was huge.... lot's of 1-2 year tenants) and I had to spend thousands with each turnover.  So... though I love the idea of anything with cash flow, that scares me.
Also, to clarify my post... when I said I have about 100k to invest (could do more, could do less...but that's comfortable and quick to access) I'm thinking for a down payment into something, not as a total purchase price.
Obviously you're doing well with this approach... my failure was due to my poor choices and lack of experience / poor self-management... but the sting is still there.  

Quote from @Mike H.:

Now I look at these STRs and I see the overall returns with property management built in and wonder why everyone is so down.  Historically speaking, STRs will at least allow you to cash flow right out of the gate and when you add in the appreciation and principal paydown and tax benefits, the returns are 40% a year or better on most of these deals.  I don't understand why younger people aren't interested in those deals.  That seems crazy to me to think thats a bad deal.

4 years ago this was accurate....I can't find it now.  I just posted a similar question yesterday, then found this.  I don't see much appreciate coming in STR homes in the near future as they have had historic jumps from 2020-2023, now have leveled and in some areas are sliiiiiightly decreasing.  Cash flow is almost impossible (for me) to find in new STR's.  I'm looking constantly, but my only hope in STR's is paydown equity for the next 5-10 years, then hope that rents rise again and appreciation comes around again.  I see nothing close to 40% returns... I hope for above 0%.  
I would love for someone to answer the question we're both asking and enlighten me to what I'm missing.  I really want to invest, but just can't find it.

I’m seeking insights from those actively involved in current-day real estate deals—not those in the planning or preparatory stages, and not from those who are trying to sell me anything. The current market environment is markedly different from five years ago, and while many of us wish we could go back to 2019 and purchase beachfront properties, that's not possible. With today's inflated prices, higher interest rates (which may fluctuate over the next year or two), and the likelihood of slower property appreciation in the coming decade, is profitable real estate investing still feasible for the average investor with no insider connections?

Specifically, I'm curious about which market segments, if any, offer opportunities for building cash flow and equity that can break even immediately. For context, we recently purchased a beachfront short-term rental condo for around $350k, and while we're hopeful to break even, it's going to be a challenge in the short term. We also own a couple of small commercial properties purchased in 2017 and 2019 that are generating solid cash flow. With around $100k to invest, I’m struggling to find opportunities that appear breakeven or better over the next few years.

I'd love to hear from anyone who is achieving immediate positive cash flow without relying on extraordinary insider deals. Are there viable opportunities out there, or am I simply missing them? If so... what market segments are best with today's circumstances: STR, LTR, small commercial, small apartment... I look at all the above and nothing feels good to me.

Please send meetup details... thx.

Please send info... thx.