All Forum Posts by: Todd Anderson

@Paul Whitney, You will get many ideas on this forum.  All have there good and bad.  

I would suggest to look for some where that is a growing market,  where there is good solid population growth.  This will get you in the best position for both rent growth and appreciation.  Cash flow is certainly important and I would not suggest an investment that does not have cashflow, but not all cash flowing units are in an area of appreciation.  

I would also look for an area that has good landlord laws.  there are may places to invest that are moving the landlord laws in the wrong direction.  Even though you are not planning to manage the property this will effect the management and resale.

Last look for a situation that will work well with the 1031 exchange.  I work with investors all the time that find that looking towards Build to Rent new construction is a good fit for an exchange.    This works well with the timing and value restrictions that are involved with a 1031

Feel free to connect if you have more questions.  

Best of luck.

 Feel free to reach out and we can connect and talk about your specific goals.

@Ethan Slater, Thank you for your service and welcome to BP.

As others have said I think your thought of house hacking in your stage is great. I have worked with a number of new investors that use this strategy to get started. As others have stated using a VA loan gives you quite an advantage to get into the deal. Take a look at what markets you are planning on starting in and make sure it is a growing market where the appreciation is obvious. This will let you capture equity as well as make it easer to cashflow. It will also alow you to use the equity as it grows to add to your portfolio.

Best of luck

@Sebastien Tinsley, Welcome to BP and the REI world.

It sounds like you are in a great position at your age.  There are a number of groups that meet in the Central Florida area.  That is a good next step to get an idea of good markets, and Deals.  You can then get help setting up your team and narrowing down your strategy.  Great comments be @Nathan Gesner,  most important, take action!  

I talk with investors all the time that get stuck in the numbers and never take action.  If you wait for the perfect deal it will never come.  In a buy and hold strategy most real estate deals
will work over time.  

Best of luck!

@Brian Stinson I have always used insurance for a disaster.  I would like to be in control of my money, so I have always gone with the highest deductible posable and maximized cashflow.  Then create a maintenance account.  You can grow that account to what ever you are comfortable with.  Then you are in control of that money.

Dealing with an insurance came is never easy, and sometimes it can be downright a pain.  I have found it much easer to handle small things my self.  This also keeps down your premiums.  

Best of luck.

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.