All Forum Posts by: Taz Zettergren

@Matt Powers Are you looking to personally move or move where it is you're investing? 

@Marcus Auerbach I couldn't agree with you more, great post! 

@Keetaek Hong I have a lot of clients who are facing the same challenges but they understand the long game and that it's imperative to build a portfolio, With that lowered interest rate I mentioned you are looking at 30% down and including PM fees will typically have you around break even or barely positively cash flowing. That's looking at it through a narrow lens though, when you zoom out to 5-10-15 years down the road and calculate the difference, in my experience the appreciation has been far more beneficial than the $200 difference per month in cash flow from a different market. Also keep in mind as time goes on typically your yield will increase because of the rent growth. 

In this space it's all about building a portfolio, my 1 house clients are at the highest risk because they can only rely on that 1 property, they don't have others to help alleviate the burden. Of course we all have to start somewhere but I tell everyone I do business with regardless if it's with me or someone else I always recommend them to build a portfolio. If you're only looking to have 1 property overtime I might not be the best fit for you because everything rely's on that 1 property. 

@Fulati Paerhati With that kind of capital available most of my clients prefer areas like Memphis, Little Rock, DFW or even Houston

@Keetaek Hong I'm a huge fan of DFW and HOU because of their population growth and job growth. This leads to home prices increasing at a fast pace so you're definitely on the right track of which markets to invest in. Personally I prefer single family homes around that median price because that's where the most demand will be not only for owner occupants but renters as well. In my experience it's easier to liquidate single family homes compared to other asset classes, that's why I like them better. I know real estate is a long term play but you never know when you'll need access to that capital.

There are turnkey companies out there that handle the entire process for you from top to bottom so it makes for an extremely passive investment. The one's I prefer handle everything in house, from purchasing the home, renovating it, renting it, then selling to an investor then managing for them on the back end. Some even offer preferred interest rates as low as 5.75% at no cost to you. 

@Dillon Clark welcome to the forums Dillon! I started out house hacking prior to getting married. I renovated the home while 3 of my friends lived with me and paid my mortgage. After getting married my friends moved out and my wife and I expanded into rental properties. Things definitely change once you're married but if you don't have any kids and your wife is open to it you may want to try finding a duplex, triplex or quadplex to buy as a primary. You and the wife could live in 1 side and you could rent the other doors out. Not only would it decrease your monthly mortgage but you'd be able to get into it with a very little down payment since you'd be living in one side of it. 

Another thought, with you being in construction, at some point you might want to look at building homes or multi families. You could build a new one every 2-3 years and move into it as a primary so the bank would be more friendly with your loan. By the time you do that 4-5 times you should be able to have a paid off home or excess funds to invest in other assets. Just my two cents, best of luck on the journey! 

@Shayan Sameer I don't have any experience in Ohio but I've had a ton of my clients be successful here in the southern/middle part of the country. Places like Memphis, Little Rock or OK are great spots to look and 200k will be plenty. 

I would be cautious chasing the 1% rule, a lot of the time it puts you into less desirable neighborhoods or into properties that haven't been completely renovated. Personally I prefer homes around that median price because that's where the most demand will be not only for owner occupants but renters as well. That typically puts your rent to sales price around .75-.8 ish give or take but these areas tend to appreciate more consistently from what I've seen and the rental clientele is more consistent. 

Best of luck on the search! 

@Shushyam Malige Sharanappa Premier Property Management Group manages mine and has done a great job. DM me if you'd like for me to connect you with them and I'd be happy to

@Christian Houston-Floyd welcome to the forums! Huntsville is a challenging market given the price points but I've had clients find good success in the suburbs. I'd recommend staying within 10-15% of the median priced home because that's where the most demand will be not only for renters but owner occupants as well. 

@Account Closed welcome to the forums! Memphis is a great place to invest, I'd also recommend areas like Little Rock, DFW, Houston or Oklahoma. These are great places to invest where prices and rents are favorable as well as the landlord laws.