All Forum Posts by: Vanessa Ivonne Hernandez

I'm following along on this topic too. I have a property I'm interested in. I'm trying to avoid having to use a PM for cashflow purposes yet the only LAIC I can find will only do it if the property has a PM. 

@David Fals I'm in the same boat! I purchased a condo in 2020 in NJ and now I'm looking to grow my portfolio with out of state investments for the same reasons outlined on this thread. 

@Sino U. My research is leading me to PA or OH for my next property because I can get more bang for my buck. Moreso PA because I want to be driving distance since this will strictly be an investment property. I'm happy to share PA contacts that have helped me on my journey.

I'm not familiar with the market at the shore because I'm more on the Northern end. The investment group I'm part of HAS been able to make the numbers work in this market. Me personally? Not so much lol. I'm able to stretch my buck further going over the boarder to the Lehigh Valley area of PA because of my personal financial situation. But don't be discouraged, it can be done in Jersey. Most of the people in my group up North were ready to force appreciation to command higher rents, so you may want to prepare to do the same. This isn't much info but I hope it helps, good luck!

I don't have any resources but I'm tagging this forum to connect with others too. Most of my pre-approved clients tend to ask for the same thing so I'm curious to know. Talk with yall soon!

Hi Taahir, welcome to biggerpockets!

Here are two reasons you may wan to still move foward:

1. Potential Appreciation
Suppose an investor buys a property in a neighborhood that is undergoing redevelopment. Even if the property doesn't generate immediate rental income, the investor predicts that as the neighborhood improves, the property's value will increase, allowing them to build equity or sell it for a profit later.

2. Tax Benefits
Let's say an investor takes out a mortgage to buy a rental property. The interest paid on that mortgage can be deducted from their income when calculating taxes. Additionally, property taxes and depreciation of the property value can also offer tax advantages. Even if the property doesn't generate significant cash flow, these tax benefits can still make it a financially sound investment.

If your goal is a long term investment portfolio then I wouldn't let the potential limited cash flow deter you from taking the next step. Still, when all is said and done, the best bet is to work with lenders and realtors in your market who personally own investment properites to help provide additonal insight.

Hope this helps!

I'm in New Jersey and purchased here, while also looking in Ohio and Pennsylvania. I can send over realtor contacts who have helped me along the way.

Hi Binyamin, great that you're starting your investment journey. I'm not familiar with STL but I'm from Northern NJ and can share some insight about the market.

Have you started building your teams of realtors, lenders, contractors, etc? I have a interview questions that help people get started. I can share if you need them.

There are also several group meets ups for landlords and investors you can find on the Meet Up app. Scrolling through and seeing the events happening in my area helped me get started just because it's easier to stay focused on investing when I'm surrounded by like-minded people.

Good luck!

Hi Leo, it sounds like it's time to start building your team so you can hit the ground running when you're ready to buy. Typically the process is just over one month depending on the complexity of the loan. I've also seen loans closed as soon as 14 days for standard FHA and Conventional loans.

First, get pre-approved to understand your purchasing power and help narrow down the markets you can afford. Then start connecting with realtors in those areas. You'll want to work with people who have investment properties themselves to help you navigate the process.

I have interview questions I've used when building my team. I sent them to another biggerpockets investor which helped him close his first deal. I can send those to you if it helps. Good luck!

Know your budget, the amount you can be approved for, your risk tolerance for where to live, how hands on you want to be

I've never done a Cash For Keys and hear it has mixed reviews from landlords. Worth googling to see if that method can suit your needs.

- I've seen Rocket Mortgage and UWM allow 1% down on conventional loans

- Depending on the clients income, they can do 5% down on 2-4 units. Are you familiar with HomePossible?

- I've seen 0% down via FHA in the form of a forgivable grant too. (Usually comes with a higher interest rate.)

Hope this helps!