All Forum Posts by: Todd Anderson

@Byoung Bae,

Congrats on making the decision to make your first REI. You are starting off will asking questions to the BP community.

I would take some time and look at markets first.  after deciding to invest out of state you have no restrictions on where to invest.  Look to markes that are showing good steady population and Job growth.  This will allow you to get in the way of appreciation.  There will also be more tenants in this market and easier to find good tenants.  

After you find a market that checks those boxes, you can then build your team.  this can be done one by one or you can find a turnkey provider that has already done this.  Many of the investors that i work with like going with the turnkey strategy.  It allows them to focus less on the investment and more on making the money for the investment.  

The last thing I would suggest you look into is New Construction.  With a build to rent you have the opportunity to own the property for the first and best years of its life.  The maintenance costs will be much lower, the appreciation will be higher, and all renters like being in a newer place.  The investors that i work with find this to be a good way to get a more passive investment that still has the benefits of owning and controlling the property.

Best of luck getting started and connect with any questions.

@Laurence Mendonca,

Congrats on making the decision on looking into REI. You are in the right place learning from the BP community.

I have worked with a number of investors who have stated their investing journey this same way.  If you have some money for the down payment you may wont to look into starting to do your House Hack on a duplex or quad.  With only requiring 5% down the money needed is very low compared to the Cash On Cash return you could make on a small Multi Family.  Manytimes the investors that i work with find this a good strategy.  

I have talked with many investors lately who are very bullish on the Central FL market.   Their is strong population and job growth in a number of Central FL markets.  Find a good market that is growing and you can do the same thing next year.  You can look back in a short time and see a very nice portfolio.  

Best of luck and feel free to connect with any questions.  

@James Calvert

I would be happy to connect.  I am a district manager with a company called Build 2 rent, and i live in Cape Coral.  

North port is a great growing market, and I would expect that you will do very well on your first property.  That being said rents have flattened mainly because of the supply of new construction in the area.  There was a large number of starts all at the same time, during the end of Covid.  all those properties are coming to market now.  the good news is that new stars are way down. So once we work through this wave of inventory I would expect to see the market stabilize.

I still believe that this will be a great area to invest in for the future.

Reach out to me if you would like to connect.  Best of luck

@David Lewis,

I have talked with many investors in your position.  When i started investing i thought the investing where i lived was the only option.  It is true that you are able to find deals in every market, but one of the things I have learned is that finding the best markets to invest in is better that trying to make deals work in a bad market just because it is close to home.

To answer your other questions.  For a first time investors that I work with I would recommend going with a turn key solution.  If you are looking at a deal that has a Realtor, builder aan Property manage all involved in the deal makes a deal very easy for a first time investor to navigate.

Look for the market first and find an area that is growing in population and jobs.

Let em know if I can help more.  Best of luck

 Benjamin,  No,  whe have new construction properties in multiple states including North Carolina  I will send a DM with info.

@Benjamin Ying

I would love to connect and get you my off market inventory of New construction Investment properties.

@Eric Martin

Welcome to BP,  this is a great place to learn and get information.

I would echo @Matthew Becker comments.   If you're planning on investing out of your area and will not be managing the property, why don't you look at better markets.  

The investors that I work with from around the country and world look for markets that show strong growth in population and jobs.  When they invest in to these growing markets they find they are able to get in the way of obvious appreciation.  This is the best way to create real wealth.  You need to invest for cash flow but,  if there is no appreciation how can your investment proform.

There are a number of great markets around the country that have been in the top 10 in growth for years.   Once you find this type of market then finding the deal is the next step.  The investors that I work with in your position prefer to look more to turn key to find these deals.  For most the place that most investors are finding these types of deals right now is New Construction.  

With new construction in a growing market investors can find incentives that solve for many of the problems in today's market.  Mainly interest rates and cash flow. If an investor can get a low interest rate and free property management properties will cash flow.  

Connect with me if you have more questions.

Best of luck.

@Cyndi Lees,

It sounds like you have a good problem with a number of choices.  Your choices will depend on what you are looking to get from the property.

STR is becoming more difficult in many areas. You may need to look into this in the area where your property is now. Many areas are becoming saturated and the laws are changing. This would be a concern for the existing property and any other turn key you may find for STR.

Many of the investors that I work with prefer the LTR strategy.  It may make less cash flow/ per month but in may cases in the long run after PM fees and Repair costs, many times it turns out similar.   This may also be an easier option if you are planning on leaving the country.   With a property that is paid off, the cash flow should be there.  

If this property is not in a great area for that or if the the property is in need or repair/ update,  then maybe the option of trading the property to a newer bigger Ltr is a good plan.  With that kind of equity you would be to find a newer, nicely performing Quad in a market that is appreciating.  This might be a better situation if you are leaving the country.

Just some other thoughts.  Best of luck.

@Matt Schreiber,

I have found the same thing in a number of markets. It is tough to find an MLS deal cash flow if you have to pay market interest rates.

I have looked to New Construction to solve for this problem.  The investors I work with find that builders are able to incentivise their product to keep it moving and do what they do best.  We have been able to find turnkey deals that have incentives that solve for the biggest problems in today's market, Interest rate and cash flow.   One of the reasons that they can do this is the builders that i have worked with are moving their product off market.

There are definitely deals sill out there, in a number of markets, and there is also cash flow in deals out there.  We just may have to change the way we look for those deals. 

Best of luck.   Connect for more info.

@Jade Frank,

Congrats on making the decision to start your REI journey. The Bp community is a great place to get information.

I have worked with a number of investors who are very happy investing in NC.  There was just a BP pole that rated NC as one of the top growing investment markets.  Whatever way you go if the deal is right it will work in these two markets.

Best of luck to you.