All Forum Posts by: William S.

I did a HVAC apprenticeship for one year during COVID. It was a good learning experience. Gained more confidence in understanding major capex items.

Interested in learning more about the market researcher…

Essentially working in real estate as my main job, that works specifically on the investing side of things.

Are there any real estate investor jobs that are not 100% commission? Any jobs with a base pay + commission? 

Hi,

A relative of mine has three SFH's that need management. Located at Plaza, Westport, and Lees Summit. Any recommendations?

Thank you

@Michael Kammenzind

I recommend that if you’re starting out that you use savings for the standard 20-25% down. I worked, saved, and kept a tight budget in order to buy my rentals. I understand there’s a lot of strategies out there, but for your first deal you can get overwhelmed with all the options. If you do not have the funds, set savings goals. While that is happening further your education, put in place your operations, etc.

@Jeremy Powers

I never had any issues. As long as the property is in a good location, condition, and you maintain the property well there’s no reason for them to complain. 

For everyone so far these are my top tips as I will be getting busy soon.

1. Know who you are. How do you handle stress? What are your strengths? Who would you like to work with? How much time do you have? What is your current work / life balance like? These are the biggest factors that will determine what happens long term. A C-class single family rental out of state may work for some, but they are not you, you may be different.

2. It's not all about what the spreadsheet says. Initially I was so focused on cash flow and nothing else. I've learned the best return was the appreciation and debt reduction (thanks to the tenant paying rent). It's amazing what a few years of debt pay off and appreciation can do. Keep in mind, when I speak appreciation I'm talking about the midwest too, not the coasts. You can hold the property for a few years, then sell for a good profit. If you want to hold it long term, you can always do a cash out refinance for renovation costs.

3. Operations and management are key. How do you want to run your business? That's what this is. It's not sit on the couch and do nothing. Nobody will take care of your property like you will. You'll have to set some very clear expectations upfront with the renter.

4. You'll make mistakes and bad things will happen. This is part of the learning process. Don't expect things to go perfect because they won't. More good things happen than bad, but eventually it'll happen. If you have the mindset that you'll make mistakes, or something bad happens you will adjust and improve. 

5. Start simple. There are a lot of complex strategies out there, that doesn't mean you have to start with one. Keep it simple. The best start for my market is a duplex house hack in a highly desirable area with a standard loan and very minimal renovation. Rental rates were high, but the tenant quality was high. My cashflow wasn't very good, but the appreciation was. I enjoyed living in the area, improving my own home and my rental at the same time, the tenants, the low stress of managing it, etc. You don't need to do anything real crazy.

Best of luck!

@Nicki Shelton

A duplex hack is when you buy the property as your primary residence and rent out the other unit. In my opinion this was my best investment. You are on-site, if you need to renovate you are renovating your own home and a rental at the same time. You can also get a 3.5% FHA loan because it is a primary residence.

@Zack Del Vento

In my opinion real estate always takes capital and I have not done partnerships. 

@Anthony Ives

I personally do not recommend an out of state investment, especially for your first property. Because you are a CA you will end up over paying for a home out of state because you have "CA money." You're operating costs will be high, and you are so reliant on others. I know CA is very difficult, however there has to be a certain strategy that works. Can you house hack in any way?

@Andrew Martinez

What you should be looking for is only something you can answer. What do you want out of real estate? What is your risk tolerance? What type of personality do you have? I would start with self reflection first, before crunching the numbers. It's like finding a job or career, does the strategy fit you personally. If you're seeking a mentor, they will find you. As long as you stay active on BP, go to real estate meetups, etc.