All Forum Posts by: Judy Wang

I feel your pain.  I've also been looking to purchase my first property using the 1% and can't find anything in either market I'm looking in.  And one of those markets is listed in this thread as an area that should have them.  I think a lot of properties that hit this bench mark are being sold off market.  Personally I am thinking about skipping the 1% rule and analyze properties that look good on my own.  IE am I making money after all expenses are paid, are GDP and Population growth for the area looking good, etc.  It's going to require more effort on my end but something has to give lol. and I'm willing to work for it!  Maybe you should find properties that look good to you and do a break down and see where the cash flow is? 

@Wang Judy As others have mentioned it does take a lot more work but deals can be found in most markets. I found a 5-unit in the greater Twin Cities area for $330k where combined rents are $3,800 per month. But you need to put in work and be connected. To my knowledge, I was 1 of only 2 people who were presented that deal. And the other person referred it to me so it takes some combination of effort and luck.

Hey Judy, I like the attitude. Don't let everyone get you too bummed about your ideal of investing its a solid start. In GA there are areas specifically in Atlanta that can get you to achieve the 1% rule or pretty damn close to it. I find quite a few opportunities really close to that rule on a monthly basis. Yes you might have to leave your comfort zone in some aspects when it comes to the amount of rehab you want to do or the proximity to your home location, but considering you are an OOS investor that doesn't seem like an issue. It very well can be achieved but is not super realistic to build a huge portfolio or consistently find deals. I would say you can keep to your 1% rule if you are okay only finding a deal every 3-4 months that fits right in there. But if you open yourself up just a bit to deals right under the 1% rule then you could see more opportunities. They do go off the table faster than other so you will need to capitalize on the opportunities when you find them.

Hi @Judy Wang - don't write off entire towns, cities or states because of high prices.  Even in areas with high prices, deals can be found.  I recently bought a commercial property in a high demand downtown area.  It hit the market and I put in a cash offer the same day.  The property had environmental cleanup issues (or they thought it did).  During my due diligence period and testing I was able to determine that the environmental issues were likely no longer a concern.  And only a concern if I decided to convert the commercial property back to residential (which I was not planning on doing).  Got the property and the week after closing got an appraisal and it appraised for 60% more than one I purchased it for.  So it can be done.  You either need to jump on something immediately, be flexible with your criteria (I didn't exactly have environmental problems on my list of things I was looking for - but I didn't rule the property out because of it - and in the end it didn't have environmental problems) and/or network like crazy to find off market deals and pocket listings.

Once it gets down to the armpit of the middle of nowhere so you can finally get your price-to-rent ratio, is it really worth it?

Contrary to popular belief on these forums, location does matter. 

Met a contractor a couple years ago who told me about his rentals in a place called Bad Axe MI:

https://www.zillow.com/bad-axe...

He bought there because it was affordable and he thought he had an advantage cause he knew the area. 

Wanna guess how his Real Estate Investing journey has gone for him? 

@Judy Wang I've never understood using rules like that when investing in real estate...there are 30 other metrics and intangible factors you should be looking at. To your question...you can find a property that meets your rule in any city in America....create your own market and stop participating in other people's...learn to source deals and structure a purchase money mortgage...

@Judy Wang are you open to Boise, Idaho area??

@Wang Judy

Yes.

My purchases don’t always meet it from day 1. Sometimes it takes a few years of rent increases to get there.

But often they can when purchasing distressed at a discount and rehabbing. 

I know a place! Are you looking to do out of state investing? DM and I'll give you more details