All Forum Posts by: Zachary Inman

However, it's even more difficult to put in a competitive offer with an FHA loan, which limits your options even more.

I entirely agree that house hacking is a great option when starting out. It puts you in a great financial spot later on!

@Mike Smith

This is certainly a question to add to your sponsor DD process. Every sponsor will say they have great reporting, but I would advise actually asking for the most recent quarterly. Quality sponsors will be comfortable with this and have it on hand.

The LP/GP relationship is just that - a relationship. If there's poor communication, that's one of the quickest ways to lose investor trust (and a good signal to not reinvest with them). 

If you're looking for stabilized multifamily, then Fountain Square will likely have a higher entry point but better increases with rent and appreciation.

Speedway depends heavily on the submarket. Being on the main strip is much different than further out. Overall, probably a lower entry point but less growth potential. 

Of course, the investor should always do their own DD one contractors referred by their agent, but I think OOS investors certainly lean more on their agent than those with local expertise. 

@Jay Chung

I third Markham. Always at the top of my list.  

Shop lenders. I've seen plenty of people get away with an owner-occupied FHA on a duplex.

Step 1: pick an out of state market

Pick a market and submarket. Become the go-to expert. Network + promote in that area. Expand + scale. 

It's a lot of work, especially on buyer side now. Current market is trimming the fat, see it as an opportunity to eat market share. 

There's always a risk. The best thing you can do is pick your markets well - good schools, local amenities, and job sectors. If it's an A class subdiv then it should probably have those things.

If you're buying in the right market, then prices are most likely to grow (even if it's slower than it has been in the past few years). Just don't overdo it with the renovations, position it mid-market for the neighborhood ;)

Use an agent unless you really know what you're doing. At least pay a flat fee to have a lawyer/agent sort the paperwork.