All Forum Posts by: Todd Dale

I'll be there! Looking forward to it!

Sorry for the late response – I was away for the weekend.

Joel Owens At one point I did consider looking for property out of state. I keep reading about cash-flowing deals in areas all over the country for a multi-family property for $250-300K. That's unthinkable in my area! The only reason I decided against buying out of state is because I think I should be close to my first deal. I have a really good job in this area and would like to stay here until I can get REI off the ground.

David Beard Thanks for the advice. I decided to pass on the War-Zone property because It’s my first deal. Maybe when I get a little more experience I’ll reconsider.

Larry K. I definitely agree regarding finding the perfect in-between. I’m just having trouble finding that sweet spot that’s also affordable.

Kelvin K. Thank for the neighborhood evaluation tips. I’m still learning and trying to get better at evaluating.

Brandon TurnerCan you see me now??

Thank-you everyone for all of your advice!! I decided to pass on the hood property. It seems like it would be too much of a headache for my first go around. I was so eager to jump on it because it was one of the few properties that i've seen so far that would actually produce a positive cash-flow.

Finding my first property has been a lot more difficult than I expected. I knew it would be a process, but underestimated the extent of all the conditions that must align for the deal to be lucurative. It's like solving the Matrix.

Thank-you again for all the feedback. This website has probably been the only enjoyable aspect of REI for me so far.

Todd

P.S. Brandon Turner I've been trying for last few days to put up a profile pic but I keep getting an error message. Hopefully I'll hear back from the BP tech team soon.

Brandon,

Thank-you for pointing me towards the post. I'm reading through the responses now and think I have my answer.

Also thanks for the advice on getting a profile pic. Putting it up now!

Todd

Hello Bigger Pockets Community:

I was wondering if I could get your thoughts and opinion regarding investing in a bad neighborhood.

I've been searching for my first property since September. I was moving along nicely(seeing approximately 5 properties a week) but then I got slammed pretty hard by Hurricane Sandy (I live in Hoboken, NJ). I just got back on the hunt after being derailed for about a month or so. I recently found a nice short sell property that I might be able to buy for very cheap. The only problem is that it's in an awful (stress on awful) neighborhood! It's such a shame because the house is so nice but when you step outside to the street it is frightening...It's a like a beautiful disaster.

I've read a few articles and responses on here from seasoned investors on this topic and the general consensus seems to be that there is nothing wrong with buying property in a war zone. The common philosophy seems to be that just because I wouldn't live in a certain neighborhood doesn't mean someone else wouldn't. This is true because the short-sell property that I’m looking at is currently completely rented out with tenants.

My question is, should I get involved in something like this on my first go around? Or should I hold off, and because I've already been approved for a FHA loan, wait and buy something nicer and more expensive in a better neighborhood? I've been approved for a $600K FHA loan. The "Warzone" property could be purchased at $200-$225k. I feel like I'm not fully leveraging this 1x FHA opportunity of using Other People's Money to its full potential. Plus I'm a little nervous to deal in such a distress neighborhood without having any landlord/property investor experience.

Any help and advice would be greatly appreciated.

Thank-you,

Todd

John T, thank-you for the insight. The beginning is always the hardest…I’ve been reading everything I could get my hands on over the past couple of weeks. Hopefully I’ll find a great investment over the next few months to get started.

Sierrah, that’s really, really good advice. Thank-you. I’ve already encountered a few people that have given off that vibe. I’m always hesitant whenever anything seems too good to be true. Any other advice you can provide is greatly appreciated.

p.s. Sierrah is an awesome name!

Thank-you all for your feedback! I really appreciate the advice and well wishes!

John T, what type of property did you pursue for your first investment? Did you find that the high taxes of North Jersey cut into your profit margins?

Thanks Michael Pilarski! I'll definitely check out any real-estate investor clubs in my area. I've never heard of such a thing. Hopefully my current income will stay consistent over the next few years. Unless of course, I accidently knock some chick up or something. Then I may need you guys to help me find another forum for faking your own death.

Hi Brandon,

Thank-you so much for your reply and feedback! I will send you a PM.

Todd

I’m a brand new to the world of real-estate investing and would really appreciate any advice from anyone. A little background; I’m 30-years old living in NJ with a well paying job (over six figures). I have decided to form a partnership with my father and together we want to begin building our portfolio. My father is retired, living in North Carolina. We have a combined $80K to invest comfortably at the minimum, or $100K if needed if we find the absolute perfect scenario.

My real-estate investing objectives are not to make a quick buck but to make money in the relatively near future. I would like to have enough cash flow to live off of my investments in the next 5-years. Not to retire, but I would sleep a lot better at night knowing I’m not dependent on one income stream.

I’m not interested in only seeing the benefits of these investments in 30 years or so after decades of building home equity. My 401k is for my retirement, this is for now (or near future). If everything stays consistent with my job and current lifestyle I’ll have approximately $50K a year to invest from my day job.

Now for the questions….

How? Where? When? How much? How long?

There is SOOO much information out there! It’s impossible to even know where to begin. Should we look into doing wholesaling? Or buying and holding multiple properties over the next few years for a steady cash flow? Should we look to buy foreclosures listed at discount rates? Does the flipping method still work after the housing bubble? If so, should we buy an $80K house or should we use that money for a down payment of something bigger? What state should we invest in that offers the best returns? I live pretty close to NYC where your money doesn’t go very far and taxes are high. Should we look to invest in North Carolina where real-estate is cheaper and my father lives, or should go invest in another state completely that neither of us reside?

I know I have so much to learn and just need someone who is knowledgeable to point me in the right direction. I’m anxious to get started. As I said, any and all advise is appreciated. Who would’ve known that raising the money wouldn’t be the hardest part of investing…

Thanks,

T