All Forum Posts by: Todd Anderson

@Krystal Lozano,

Building a portfolio to a 6 figure is definitely a long game.  You have the time.  Use the two years to learn the area and I would suggest as soon as you can, find a duplex and start a house hack.  Try to move every year to a new small multiFamily.  Before you know it you will have a nice portfolio to continue to grow.  

Best of Luck

@Marcus Everett,

Welcome to REI and you have found the best place to learn in the BP community.

Best of luck moving forward.

@LaShon Evans,

The question about LLC is a good one and you will get may opinions on the subject. There are definitely advantages to the liability issue when using an LLC, but there are some disadvantages as well. It may be more difficult to get financing and a good rate buying through an LLC. Many of the investors i work with start buying in their own name and then move the investments to an LLc after you acquire a few. Then they will start the process over.

As for finding a market.  I have learned to be in favor of finding the best market to invest in.  In today's world there are so many tools available to help you buying OOS.  With pictures and video that can be sent on progress, many of the investors I work with never visit the property.  this type of investing does require finding a good turnkey provider that has Boots On The Ground.  The investors that I work with find this benefit one of the most important. 

The market you are looking for should be one with strong population and job growth.  It should also be somewhere with beneficial landlord tenant law.

Best of luck in your search and let me know if i can help.

@Lucas DeAndrade

With the investors I work with they are  normally acquiring and average of 4 properties.  when they find a growing market that works well for their investment there is no reason to try to look for another market.  When an investor gets over 4-5 in a market then we normally talk about diversifying into a different market.  this would normally take a few years.

Best of luck on your next search.

@Andrae S Wiggins,

Welcome to the BP community, this is your first best resource.  

As others have said, your first step is to define your investing goals.  Once you can define what you are looking for then you can create your "Buy Box".  I have learned over many years of investing and working with many different types of investors, that there are many different types of Quality Deals, and they are not that same for every investor. 

Use the tools at BP to find what type of investor you are.

Best of luck.  

@Ben Callahan

Welcome to the BP community.  This is a great place to make connections and Find information.

As others have said you will get a lot of information on what market is best.  Each market you will hear about will have its good and bad.  The most important thing you will need to keep in mind is to find a market that is growing in population and jobs.  With this type of market your investment will get in the way of obvious appreciation.  When the market goes up most all properties go up.

The next step will be to find a deal that works.  It is never a good deal if you are buying just for appreciation.  It is tougher to find deals that cash flow but they are out there.  I have actually worked with a number of investors from california who have sold their CA property and been able to acquire 2-3 cash flowing investments in great markets. 

The investors that ! have worked with have found that the appreciation for the last few years have been stronger when they go with a new construction investment.  With a new construction investment not only do you have fewer maintenance costs but your comps are other new properties.  This type of property tends to gain value quicker than older properties.

Best of luck in your search, let me know if I can help.

@Matt Powers,

I would agree with some of the others, Househacking is a great way to start.  

I have worked with a number of investors who have found a new construction duplex or quad in a great market and moved.  They plan on staying in the property of a year and when they are ready to move they will have a cash flowing property to help.  

@Amanda Smith has some good thoughts on areas.  find a market that is growing in population and jobs.

Best of luck.

@Ben Syzek,

Congrats at the decision to start learning about REI. BP is the best place to start.

The idea of LTR in SFR is in my opinion the best place to start. There are many markets that this will work great. I have learned that in today's world of information you do not need to limit your investment to just markets you live in or normally travel to. The markets open up if you are not planning on doing the management yourself.

There are many markets that are growing in population and jobs throughout the country if you are willing to look at OOS investing.  Many of the investors that i work with find that when you find the right team to invest through this can be an easy and profitable way to invest.

Best of luck.  Look into all the options.  

@Logan Jamieson

I know this is an older post, and I hope you have found a way to move forward.  To answer your main question.  The lesson her is you have to make the best move you can but, Make a move.  @Russell Brazil said in his response, you can always find a reason not to make a move.  

There are deals in every market that work and the beast factor in real estate is Time.  When you make a move every year and get a deal that will bring you wealth in the 4 ways we all know real estate can, You will look back in 5 years and see that all your deals look better.  It can be only for the reason that you got your money working for you instead of the other way around. 

You mentioned tow markets that I know alot about NC and FL.  there are deals in these markets that work.  I work with investor who find deals to cashflow day one, in markets that are growing both in population and jobs where the appreciation is obvious.

By far the biggest step in REI is taking the first step and getting a REI. Not every deal needs to be a home run. If you make base hits for 10 years you will look back on a portfolio that has a lot of runs.

Best of luck.

@Reynald Jean,

Congrats on making the decision to start you REI Journey. The BP community is a great place to start.

There are a number of good markets that you will be able to find a good investment property for 80k down.  The investors that i have worked with have found if you go just outside the major areas that are showing sustained growth you are able to find an investment that works for both cash flow and appreciation.

You will need to figure out a strategy that work for you.  Most of the investors that I work with who invest OOS are looking for a buy and hold situation.  They find a good renter that will hopefully stay for a number of years and pay down the mortgage.   While this happens if you are in an area that is growing you will be able to get in the way of appreciation.  Let me know if i can answer any future questions for you.

Best of luck