All Forum Posts by: Trevor Ewen

@Thom H. 

I am in the area often enough (family stuff, holidays and all). Next time I will be there is Christmas. We're keeping an eye for out for our next play, but are not pursuing any new investments till 2015. My Dad is a contractor who lives in Lexington, VA. Obviously I trust him, and he is more than happy to be involved in fixing and management. My hope is to make him a partner, trading his labor for his share of the property.

Lexington is appropriately pricey, and you inevitably compete with a retail crowd. Buena Vista seems much more working class, but the land and surrounding area is beautiful. To me, it seems like there are possibilities for fixing, cash-flow, and greater eventual interest in the area... granted, areas like these are not my specialty.

Looking for anyone who knows about or has any interest in Buena Vista, VA. The town has the right fundamentals for me. My parents and extended family have relocated there (Lexington, Virginia), so my network is extremely strong.

If you do, let's talk. Interested to hear any on the ground opinions.

@Mike D'Arrigo

The midwest is definitely not an appreciation market. Thanks for being honest and thoughtful about the prospects on that. 

@Account Closed 

Haven't looked a great deal into notes. At the moment, I am moving forward on a private placement, but may have some more bandwidth for that in the upcoming year.

@Beverly Buella Thanks. We're looking a couple years down the line, and our recent visits have given us a few good ideas as well.

@Adam Stanton 

I am a big believer in pricing anything just below the market, since vacancy is the ultimate profit killer. For instance, average rent is $825, say you go for a slight reduction at $815. In this case, when compared to $875, you are 'losing' $60/mo. Over 12 months: $720 loss. The thing is, this is still lower than a month of vacancy.

Also, I would absorb the price of the application fee yourself. C-class tenants are looking for affordability, both points are in that vein. All of a sudden, the floodgates of tenants will open. Still screen hard, but this way you just have a bigger pond in which to fish. 

@Andrew M. NYC has many of the same problems. It's nice to be in the 'in' place, but as you grow in maturity and investing, other areas start calling.

When you are doing a fully cost-oriented analysis of the area to live in, it's important to think of where you might (have to or want to) let yourself slide in another area. Here is a good example:

I can complain about the cost of living in NYC. However, I own 0 cars, no pets, and live in a fairly small apartment. If I was to relocate to Georgia, we would certainly be in for 1 car, maybe 2. We would likely have more housing time and utility costs (landscaping work, air-conditioning). Furthermore, I would be taking a wage hit. This is specific to me because I still work a full-time, non-real-estate job. Given all that, the move does not save me as much as I would like. In the short term, it may cost more.

I find this index to be helpful in this case:

http://htaindex.cnt.org/

For the record, I do plan to leave NYC. Ultimately, it is too expensive, crazy, and over-regulated. But in the pre-children stage of life, it makes some sense to stick around. 

@Hattie Dizmond always looking for new datasets, many thanks.

@Jay Hinrichs Great advice on due diligence.

One tip I have noticed in my own life. I tend to underestimate my existing lifelong network (non REI).

For instance, my best friend from elementary school lives in a decent SFR market, and I trust this guy with my life.

Bigger Pockets is a great place to network, but you are starting at 0 for every single person you meet. Many folks add to their credibility with writing, and by having a good attitude, but you still start at 0.

Friends that you already know and trust can introduce you to their markets. I am sure your college network has a couple people in the cities you hear mentioned throughout BP. Go to Facebook, search for a city, see who lives there. In the best case, you find someone who is willing to partner with you. In the worst case, you have someone to eat lunch with, when you visit the market.

I barely consider NYC my market, because I don't have any plans to invest here. That being said, since I live here:

Manhattan: Never was affordable

Brooklyn: Now at pre-crash highs

Queens: Approaching but managing more stability

The Bronx is the only place I would consider investing in the Metro. But you are making a gamble on neighborhoods if you want any chance of cash flow.