All Forum Posts by: Thomas M.

Hi Thomas, pleased to meet you.

First, Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, Passive, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To", apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc. Decide how much money you have access to, & the zip codes, city or state you want to focus on. That will determine the next step. Outline where you want to be in five years. Put it all in writing. Start working your plan. There are plenty of people around to help you each step of the way. Drop me a line if I can help.

Here is how I do what you are wanting to do . . .

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

Speaking solely from my own perspective here. I'd buy as many small multifamily properties as I could reasonably manage, with a percentage of the cash reserved for repairs/touch-ups of said properties.

This accomplishes two goals:
The money draws in the greatest cash flow possible, and
You don't accidentally over-leverage your holdings.

Let's say you can afford 3 duplexes at $150K total in, with $25K held back for repairs. 6 doors total. If one unit's tenants leave in the middle of the night, you're out 16.667% of net cash flow that month. Hurts, but not crippling.

Contrast this to buying 3 SFHs for the same amount. If one tenant leaves, you're now out 33% of net cash flow. That hurts a lot more.

Also, I did a little bit of research on Idaho a few months back. Decided not to pursue any investments there, as the numbers seemed a little off-balance. (I could easily be wrong, as I do not live in the area.) If I had $150-200K, I'd look at buying more in Ohio cities, the Phoenix metro, Pittsburgh, and maybe Detroit. Lower down payments, lower expenses, better ROI.

Hope that helps. Best of luck.