All Forum Posts by: Tyler Smith

@Account Closed thank you for your insight on this whole thread, it has really changed my thinking. I have 1 question though, would you agree that somebody who believes single family homes may be a better option might have different goals? If the goal is to have steady income without necessarily scaling to 100+ units (maybe 15-20) could you make the argument that SFR might be a good strategy?

@James G. I was getting those prices just by looking at different turnkey providers websites and seeing what they offer. The $60-$70k was a down payment so we purchase price would be around $250k-$325K. I’m kinda liking Little Rock and Memphis right now just based on the numbers

@Moises R Cosme that is a very interesting way of thinking about things. I obviously have a lot to learn moving forward. So your strategy doesn’t involve much leverage? 75% equity in a property is much higher than many people on these forums! Thank you for your response 

@Syed H. That makes a lot of sense. So just to summarize what you're saying. As you scale, CapEx/maintenance will be less which decreases costs which essentially raises the return naturally. Secondly a nice SFR might cost me $30k out of pocket to purchase while a 3-4 plex might cost $60-70k

@Syed H. That is exactly the question I'm trying to figure out. So in your opinion 25-40 doors divided up between 2-4 unit properties should outperform 10 SFR

@Account Closed what you’re saying makes sense to me. I personally don’t want to start raising money for units when I’m still figuring out the real estate game. In your opinion do you think it would be a better idea to focus on small multi family vs SF while I’m getting started?

@Brian G. Yes, actually house hacking was the first strategy I tried to implement. It is absolutely the first thing I’m going to try and do if housing prices drop in the Seattle area. 

Generally speaking if I were to purchase a decent duplex with 5% down in a decent suburb I would still barely break even if not have negative cash flow if I were to move out and rent out the 2nd unit. This is the house hack catalyst for me, my current monthly expenses would increase and my exit strategies would be limited unless there was rent increases or appreciation of the property.

Again I am not saying it cannot be done, I’m sure there are real estate pros killing it in the Seattle market I just don’t see a plausible way for me personally to be able to be successful in this market right now 

@Johnny Wolff well I'm glad to hear other people have similar thought processes to me. 8% CoC with some tax benefits and a 30 year loan pay down seems like a good deal to me

@Brian G. the main reason is I live in Seattle where home prices are just ridiculous. I actually work construction so a rehab wouldn't be a huge deal I don't think compared to other people without construction knowledge. But my main goal is to increase my  income level and eventually phase out of my current job, I know high cost of living areas can definitely be profitable if you know what you're doing but frankly I don't. In my own head this is the most reasonable path for me to begin my real estate journey

@Johnny Wolff Are you focusing on higher end homes? By higher end I mean median home value of the market up to slightly higher than median value. I feel like the bad rap that out of state investing gets is from investors that don't do their due diligence and purchase properties way below median price and expect nothing to go wrong. Just my person opinion