All Forum Posts by: Todd Anderson

Brady,

When I do my screening for new tenants I would weight the rental history the most.  How a tenant pays, keeps the house and acts as a neighbor is the most important thing to look for.  

I would be honest with the tenant.  Go meet them and have a conversation about rent.  Let them know that you will be needing to get the rent closer to market rent.  See what they feel about their ability to pay.  Keeping a good tenant will be the most important thing you can do when starting out.  

The 3X income to rent is a rule of thumb like all others.  Real life does not follow rules of thumb, they are there to give guidance.  Some of the best tenants I have had did not fit all the rules of thumb.

Best of luck.

Lenny,

Good for you for thinking about your future and welcome to BP.  Going down the path of house hacking would be the advice that I would give anyone in your position.  Find a single family, or even better a duplex that you can live in and fix up.  In your situation you may be moving areas.  This is something you can do in multiple cities.  Do this every year if you can.  It won't be long you can look back and see a nice portfolio.  Then you can combine or exchange for a better or more consolidated/ better proforming area.  

I bounced around the minors in hockey and I wish I still owned all the places that I stayed.  

Best of luck on your road!

Devin,

Congrats with the win!  Development is a fun and frustrating venture, but Real Estate is still a good place to find a win.  It is always good business to stay conservative on numbers.  

Learn from the exercise and do better on the next.

Good luck!

Anade,

Welcome to BP.  I am very happy with investments that have worked on in the Jacksonville area.  I have worked with a number of investors in the last year that are happy with the cashflow on smaller multi fam in this area.  I have worked with a builder in the past who offered new construction quads for investment in this area.  

let me know if I can help give you any information or connections in this area.  

Denise,

There are two was to invest in Out of State Markets.  One is to build your own team of quality venders that will help you, most important may be the boots on the ground,  The other is to find a Turnkey provider that can be trusted.  

The investors that I work with like the ease of the Turnkey approach.  There are a number of good stories on the threads of investors  that are very happy the invested out of state.  From my own experience, I never thought I could invest and not be hands on, until I did it.  

I have worked with a number of investors in your same situation and because they have a good W2 job or a business that they are running, they are looking for something easer.  Nothing is 100% passive but if you work with someone how has already built a team you can benefit from their experience. 

Some investors have found that working with the right team even in challenging markets can be a pleasant and profitable venture.  

 Huong 

If you are looking to rent for a couple of month that would be considered short term, and yes most renters would be looking for a furnished unit.  The market for long term is starting to get a little better.  With LTR most renters are looking for a unit without furnishings.  

The choice between the two would be up to your investing goals and what you are wanting to do with the property.  Most of the investors that I work with like the LTR option. because as said above the time is much less burdensome.  

Connect if I can help.

Matt,

There is always another timeframe to alkalize or another area to look at. I think all the other seasoned investors would agree the best timing to make your first step into REI is yesterday. When you have the funds available and you find a deal that works, that is the right time.

With the new investors that I work with the biggest step is saying yes when you are ready.  In a buy and hold investment strategy for building wealth. having the first month vacant in a 10 year hold is a blip on the radar.

Best of luck getting ready,  use the time that you are getting the funds available to look at deals.  

Micheal,

There is a couple of other things to consider.   Are you planning on managing the properties yourself?  Are you planning on doing the maintenance your self?

Many first time investors don't realize that by getting into the management they are getting another job. Many of the investors that I work with have good jobs and are looking to get into REI to grow wealth not get another job. They are happy to look further from where they live, in a better rental market, because they do not want to do the management.

If this were the case, then as others have said a hybrid of a 2-4 unit might be the best place to start.  The investors that I work with find that the financing for this size unit is that same as SF and they are able to cashflow nicely day one.  

Just another thing to think about.

Devin,

What you are working on looks very exciting to me.  I to believe that the new construction rental communities are a growing and very needed platform.  With the changes in the thinking of the new generations and the increased mobility of our society, I believe that a new rental community of single or smaller homes will become more and more popular in many areas of the country.  

I have been involved with a few of these projects in different areas of the country and each one I have worked with has been a great success.  The idea one a smaller living area and greater community amenities have been a super popular platform for people.  I will not be surprised to see more and more of projects like this get developed in the future.  

Best of luck all.  

Matt,

As others have said you need to find where you want to live,  I work with investors that find house hacking new construction properties give them great bang for the buck.  I have worked with a number that were able to get into a new construction Quad with 5% down and control 1M of property for just over 50k.  

This is a great option just look for a market that you want to be in that is growing.  

best of luck on your start in to REI