All Forum Posts by: Todd Anderson

@Niranjan P Ghate

Welcome to the BP community. As you can see, these forms are a great way to get answers to questions to get moving.

You've gotten a lot of great answers to the questions that you posed, and I do think you're thinking about this in the right way. There has to be some obvious indicators to whether you want to go deeper in evaluating a deal. I would agree with what others have said that COC and cap rate are good. Initial indicators of an investment. These two numbers will let you know whether the deal will work. One other number that you brought up that you shouldn't be very concerned with as a buy and hold investor is IRR. this number looks at how the deal should work for you long-term and takes into account the market appreciation.

The investors that I work with who are investing OSS are you interested in finding the best markets for growth of their investment over the hold time.  You will find insight into markets through BP, but make sure it's a market that is growing in both population and employment. This will ensure that you will get in the way of appreciation.

For a buy and hold strategy, I also recommend to the investors that I work with to consider new construction. With this strategy you were able to own a property for the best years of its life. In these years, the maintenance cost are lowest because everything is new.  it also allows you to gain appreciation compared to continued new construction. All direct comparisons will be new to the market and new construction will most likely not get cheaper.

Feel free to connect if you have more questions.

Best of luck

@Sachin Amin

I work with a number of builders who have no issues selling to investors. We actually set up incentives to make their products more attractive to investors. These include right by down and free property management.

Most of the builders that I find that are willing to do this are doing infill development. They are more production base builders that her interested in just building the next project. With this type of development, there's no worry of ruining their community with a renter.

The investor that I work with find the strategy of investing very easy, profitable, repeatable, and not very time-consuming.

If you look for a smaller builder that is doing infield development. He may be able to find a good situation to invest..

Best of luck.

@Frank Wei

Welcome to the BP community. As you can see, this is a great place to get a number of different strategies to invest.

I worked with a number of investors like yourself who have demanding W-2 jobs. I always suggest to them to focus on working that W-2 job because that's what they're good at. There are many turnkey investing situations that can help you get into the game and grow wealth without taking too much of your time.

With the investors that I work with in your position, I suggest investing new construction. With this strategy you can own a property during its best years, the time where it takes the least amount of maintenance. In many cases, builders are also able to offer incentives which makes the properties cash flow day one. Some of these include right by downs and free property management.

There are a number of different markets throughout the country that this strategy is working great. The best markets for this are markets that are showing strong growth in both population and employment. When I have talked with investors lately, we have focused on the Sunbelt part of the country.

Building your portfolio while working a W-2 job is a great strategy to build wealth and prepare for the future..

Best of luck, and let me know if I can help.

@Mirza Razin Alam

Welcome to the BP community. This is a great place to find quick answers to questions.

I have worked with a number of investors from Canada and we have been able to find strong investments that have performed well. Is there a specific reason you're looking into BRRRR? Was there something that you didn't like about the turkey that you purchased?

Normally when I work with OOS I recommend that we look at new construction investment properties instead of BRRRR. This allows the investor to get a property that is not in need of renovation or maintenance for the first few years of its life. Controlling renovations or maintenance from a distance is always challenging. Most investors find working with a builder who is offering finished products makes the process smoother and easier. We also find that this process gets us to cash flow much quicker.

There are a number of great markets throughout the country that this type of investing is working. These are markets that are growing in population and employment. Many of the investors that I've worked with lately have looked in the Sunbelt to find these markets.

I would suggest that you take a look at this investing strategy to see if it might work for you.

Best of luck.

@Benjamin Boyle

Welcome to the BP community, you've come to the right place to get information.

As others have said on this post, you were in a good position to build wealth for your future. Whenever I talk with investors in your position, I suggested them that they keep their W-2 and focus on that. This is what they're good at and is what is giving them a high income.

With the investors that I work with I suggest the exact plan that @Ryan Spath lays out. If you are not tied to the market, you're in. Find a market that has good population and employment growth. Find an area in that market that is up-and-coming. And look for a house- hack there.  I have worked with a number of investors that have done this very successfully with quads. They are able to stay in that quad in a nice area for 1 to 2 years and then by another. None of the investors that I've worked with have ever had problems renting the property after they move out. If you're buying in a area that you want to live in others will want to live there too.

You were in the perfect point in your life that you can build wealth that will carry you the rest of your life.

Best of luck along your investing journey

@Amish J Patel,

Congrats on starting your REI journey. And welcome to the VIP community.

I worked with a number of investors lately, who are very happy with the Charlotte market. They agree with you that buying a newer property will likely have lower, initial maintenance costs, and higher starting, cash flow. 

I owned a property management company for over 15 years and managed over 700 units. There's a lot to know  in property management, but starting with three properties and someone local you should be able to handle the learning curve.  There are definitely good practices and policies to get in place before you scale, but starting with just three properties, you should be able to handle things as they come up.  

Now that you have joined the BP community, I would strongly recommend becoming a pro member. There is some nice bonuses like access to leases and forms and even property management software's that come with the package.  I myself am planning to use the software when it's time for me to change with my own properties. These forms are also a great way to get small questions answered as you go.  

The most important thing to get ready before you start is a good screening process and have the right lease in place. This will give you the best way to find the best tenant and keep them for the longest time.  

Best of luck.

@Krystan Menz

Welcome to the BP community. This is a great place to find information before you make the move.

You have some good *** assumptions and are asking some of the right questions. If you are looking for an investment that you will be using a property manager and don't want to personally handle a flip, I believe OOS he is a good option, even for your first deal.

In your research, I would recommend you look into new construction investing. Many of the investors that I work with have found that this is an easy and profitable way to invest OOS without most of the headaches.   We find, as investors, working with good builders and getting new properties is a hasslefree process, and normally quicker to cash flow. 

Investors that I work with find value in using a team that is set up from builder, to property manager, to insurance, and boots on the ground. With the team like this, and the technology in today's world and investor can see their properties condition during each step.

As for your question on market, there are many great markets throughout the country. Many of the investors that I talk with find value in the Sunbelt, we are markets are growing in both population and employment. This allows you to get in the way of obvious appreciation in a growing market. We also find that in these markets we can get day one cash flow because there are people looking for rentals.

Let me know if I can help with specifics on some of the certain markets that we are seeing good performance.

Best of luck

@Ying Tang,

Welcome to the BP community. It looks like you've done the right things to start your real estate investing journey. Now you're in the right place to ask questions about how to continue.

Every day, I am hearing the same thing from the investors that I work with about BRRRR. they are able to find deals, but it's hard in today's interest rate world to be able to get money out after the renovation. Most people find that it's hard to get these deals to cash flow.

The investors that I am working with now, are finding that it's easier to invest in new construction to find cash flow.  Builders in this market are able to give incentives that allow investors to cash flow day one. In today's market where things have slowed, the builders that I work with are even more ready to deal. many investors find they can get incentives like rate buy downs and free property management.  

With the money, your husband and you are saving for investment each year it would be easy for you to grow a very nice portfolio in just a few years. This could be a portfolio of new properties that need little maintenance and could get better appreciation and older properties. 

These are just thoughts that I talk to investors about.

You've had a great start. Best of luck in the future.

@Steve Yount,

This is a great and very under utilizesd way to invest in Real Estate.  

I am currently working with an investor that is doing this exact thing.  She has a SDIRA in which she needed to deploy 400k.  We found that she could purchase two new construction duplexes. She will keep a small amount of capital in the SDIRA to cover expenses. Most of the expenses should be very minimal because the properties are new construction and carry a builders warranty.

This investor that I'm working with, has been very impressed with the ease of this process, and the ability for it to be hands off in the future. The only small complication is the lending criteria, which we were able to navigate easily.

Feel free to connect if you're interested in the details of all this worked.

Best of luck.

@Sas Sel,

When I talk with the investors that I work with, who are concerned about the storms and insurance in Florida? We look at markets like North Carolina. I have worked with a number investors who are very impressed with the growth of investments around the Charlotte market.

The Charlotte market has most of the benefits of Florida, but is much more inland. The growth areas about 45 minutes outside. The city are good place to find investment properties that still hit cash flow metrics. As others on bigger pockets have said the Charlotte market is projected to be a growth market for the future.

I personally would not hesitate. I'm looking at other markets in Florida. I have found a number of great looking investments just north of you in the Ocala market.

It sounds like you've done a great job in investing so far best of luck in finding the next great investment.