Looking To Expand My Portfolio - All Advice Welcome!

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Remington LymanBusiness Member

Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes

4y

Quote from @Tyler Woodall:

Hi,

I am a new Realtor/Investor in Columbus, GA. My team specializes in investment properties and I will actually close next week on my first and second investment properties. They are both two bedroom/two bath already rented houses purchased under a commercial loan for $84,000 together.

In comparison to CA, you can get more bang for your buck in Columbus, GA where there are properties available for investors. Please let me know if you would like to chat about future possibilities.

Thanks!
Tyler

I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

https://www.biggerpockets.com/...

I invest locally in Columbus, Ohio

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John Mausteller

Real Estate Agent · Outer Banks, NC · Member since 2019 · 168 posts · 116 votes

4y

Hello -

I am also a realtor and I own a few rental properties that are all STRs and rented through Airbnb. I think running the numbers, figuring out all your expenses, and coming up with a conservative estimate on what the home will bring in annually is a great starting point. I also think walking the home, and the town can give you an idea if it will be a good short term rental area. Most of my investments have either been locally where I live (Outer Banks of North Carolina) and it is a tourist destination so I knew STRs would go well here. My other investments have been where I wanted to vacation - and it has been a good strategy for me. I also believe in your gut feeling, this gets better as you get more investments under your belt but I believe you can feel if an investment is right or not. As I said, running numbers are a great place to start but I have also seen people talk themselves out of great investments because the believed they could not make the numbers work, and then end up regretting the decision. Be conservative with your numbers, but also trust your gut.

Ricardo Hidalgo

Real Estate Agent · Member since 2019 · 569 posts · 257 votes

4y

@Brennan Harms

I would explore the panhandle of Florida (Navarre to Panama City) since its an emerging market for residential and commercial. There are tons of business moving into the area and a large demand for homes. I always like to diversify my holdings since some areas are better for appreciation which is a short term play to gain capital quickly but other rent better for long term holds to sustain cashflow in my business.

2 Reply

OP

Santa Monica, CA · Member since 2022 · 9 posts · 5 votes

4y

Quote from @Austin McClain:

When running numbers, I think the calculators in bigger pockets are great. They're easy to use and give a clear picture.

As you search for a market, I look at where companies and jobs are moving to. I live in Columbus, and a lot of tech companies like Intel have been moving here to lower their operating costs.

It seems that there is a large influx of high-paying companies promoting remote work for people flooding to cities such as Columbus and essentially away from coastal cities like SF, LA, and NYC. So other than looking at emerging markets through large corporate decisions and trends, how else would you identify profitable markets? I know first hand, there is plenty of money to be made in properties that are not necessarily "pretty" and aesthetic but rather serve a purpose to produce income beyond the regular operating expenses of the property.

OP

Santa Monica, CA · Member since 2022 · 9 posts · 5 votes

4y

Quote from @Tyler Woodall:

Hi,

I am a new Realtor/Investor in Columbus, GA. My team specializes in investment properties and I will actually close next week on my first and second investment properties. They are both two bedroom/two bath already rented houses purchased under a commercial loan for $84,000 together.

In comparison to CA, you can get more bang for your buck in Columbus, GA where there are properties available for investors. Please let me know if you would like to chat about future possibilities.

Thanks!
Tyler

Tyler:

I am open to chatting further about investment properties in your area! Feel free to reach out to me to discuss further.

OP

Santa Monica, CA · Member since 2022 · 9 posts · 5 votes

4y

Quote from @Remington Lyman:

Quote from @Tyler Woodall:

Hi,

I am a new Realtor/Investor in Columbus, GA. My team specializes in investment properties and I will actually close next week on my first and second investment properties. They are both two bedroom/two bath already rented houses purchased under a commercial loan for $84,000 together.

In comparison to CA, you can get more bang for your buck in Columbus, GA where there are properties available for investors. Please let me know if you would like to chat about future possibilities.

Thanks!
Tyler

I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

https://www.biggerpockets.com/...

I invest locally in Columbus, Ohio

Remington:

I just messaged you. Lets chat.

OP

Santa Monica, CA · Member since 2022 · 9 posts · 5 votes

4y

Quote from @John Mausteller:

Hello -

I am also a realtor and I own a few rental properties that are all STRs and rented through Airbnb. I think running the numbers, figuring out all your expenses, and coming up with a conservative estimate on what the home will bring in annually is a great starting point. I also think walking the home, and the town can give you an idea if it will be a good short term rental area. Most of my investments have either been locally where I live (Outer Banks of North Carolina) and it is a tourist destination so I knew STRs would go well here. My other investments have been where I wanted to vacation - and it has been a good strategy for me. I also believe in your gut feeling, this gets better as you get more investments under your belt but I believe you can feel if an investment is right or not. As I said, running numbers are a great place to start but I have also seen people talk themselves out of great investments because the believed they could not make the numbers work, and then end up regretting the decision. Be conservative with your numbers, but also trust your gut.

John:

Thank you. I think you're very correct with being conservative with your numbers to create wiggle room and unexpected or unanticipated exposure coverage.

What programs do you use to run your analysis? Do you use the BP programs, and if so, which ones specifically?

As for the concept of purchasing STRs in areas that you like to vacation in, I think personally, is an excellent idea. For example for myself, I went to college in Scottsdale and love going out to golf and spending time with friends. Therefore, if I can find short-term rentals there that have a vacant rate of 5 days a month or so, I now have free housing where I like to visit whenever I want.

Other than looking for tourism areas, what other criteria do you use to look for good STR areas? I would love to chat with you more to learn about your process if you're free.

OP

Santa Monica, CA · Member since 2022 · 9 posts · 5 votes

4y

Quote from @Ricardo Hidalgo:

@Brennan Harms

I would explore the panhandle of Florida (Navarre to Panama City) since its an emerging market for residential and commercial. There are tons of business moving into the area and a large demand for homes. I always like to diversify my holdings since some areas are better for appreciation which is a short term play to gain capital quickly but other rent better for long term holds to sustain cashflow in my business.

Ricardo:

What do you look for specifically in a community, like the ones listed above, to make a decision on which property? What does your process look like?

Lane C.

Rental Property Investor · San Jose, CA · Member since 2020 · 47 posts · 4 votes

4y

@Brennan Harms I would def look into str and educate yourself on them. Str will almost always cash flow better than ltr will and if you buy in the right market your appreciation will also be killer. I would recommend self managing. Something to think about if you do end up going the str route and want to scale a portfolio and have quite a bit of capital is getting into nicer higher end properties. Think long term. In 10 years it would be much easier to manage a portfolio of 10 higher end rentals than 30 cheaper rentals. Good luck!