How would you invest 100K if you were just getting started

Real Estate Agent · Columbus, OH · Member since 2022 · 36 posts · 33 votes

4y

I know a lot of out-of-state investors currently investing and looking in and around Columbus, Oh. The market here has a lot of opportunity, appreciation / cash-flowing multi-families. New jobs are regularly being announced and large tech companies are moving resources here. I believe the future continues to be bright in Columbus.

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Joshua JanusBusiness Member

Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes

4y

Quote from @Aquila Kentish:

Hi everyone,

I was blessed to have the opportunity to purchase a family property (3-family in Boston) with lots of equity. I'm tapping into the equity in order to continue investing in real estate. I'm a single mom, in the middle of a career shift to accommodate my young child, so for the last 2 months I have no w-2 income, but steady rental income which covers all of my expenses. I'm tapping into $175k of equity $75k will go back into the current property to increase the value and income potential, and I want to figure out the best way to maximize the other $100k. Boston is a very expensive market and therefore my dollars don't go very far here. I'm open to out of city/state investing and I've been looking into South Carolina, Georgia, Alabama and Maryland- the only reason being I have family in those states and I'm familiar with them (with the exception of Maryland) I'm not married to any area at this point. Just wondering if someone with more experience was in my situation, what would you do? I'm mostly looking into long term investing with cash flow potential and I favor small multi family right now. Thanks, Aquila

Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. The appreciation rate in Columbus has been 8% higher than the national average over the last year. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs.

https://www.dispatch.com/story/business/2022/01/21/intel-ohio-building-computer-chip-factories-licking-county-jersey-township/9173472002/

Another example of economic growth is the upcoming Ohio State University Wexner Medical Center Inpatient Hospital which is a 1.9million square foot hospital that will bring over 800 new beds and a thousand new jobs.

https://abc6onyourside.com/news/local/new-osu-hospital-expected-to-transform-health-care

Here are a few more recent investments

https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

https://news.wosu.org/news/2022-02-08/rumpke-to-build-50-million-recycling-facility-in-columbus

Check out The Complete Guide to the Columbus, Ohio Real Estate Market which goes through the Columbus, Ohio market in depth and will give you a better scope of where the highest levels of growth are taking place and where to look to invest.

[email protected]614-502-5316 Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)

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Remington LymanBusiness Member

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

4y

Quote from @Aquila Kentish:

Hi everyone,

I was blessed to have the opportunity to purchase a family property (3-family in Boston) with lots of equity. I'm tapping into the equity in order to continue investing in real estate. I'm a single mom, in the middle of a career shift to accommodate my young child, so for the last 2 months I have no w-2 income, but steady rental income which covers all of my expenses. I'm tapping into $175k of equity $75k will go back into the current property to increase the value and income potential, and I want to figure out the best way to maximize the other $100k. Boston is a very expensive market and therefore my dollars don't go very far here. I'm open to out of city/state investing and I've been looking into South Carolina, Georgia, Alabama and Maryland- the only reason being I have family in those states and I'm familiar with them (with the exception of Maryland) I'm not married to any area at this point. Just wondering if someone with more experience was in my situation, what would you do? I'm mostly looking into long term investing with cash flow potential and I favor small multi family right now. Thanks, Aquila

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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Jarrod Kohl

Boston, MA · Member since 2017 · 209 posts · 126 votes

4y

I love Ohio as much as the next guy.....BUT I would stick to the ones you mentioned:

South Carolina, Georgia, Alabama and Mass. Start by do some very general research on which resources you know or have access to. AKA in Georgia, whats the market? Are we talking Atlanta or South Georgia Peanut farms. Do any of your friends/relatives from those states invest or know investors? Any run or work in a PM company? Start with that.

For out of state I think you want to pick some specific markets and then do a little mini deep dive into what the deals look like using your general knowledge and if possible your family knowledge (mileage may vary)

For in state. You could look at places like Lowell, Worcester, Cape Cod (probably not great for MFs in price range)

If you have connections in those states it will in theory be easier to do something there. Also, when you go visit properties you can also visit family which may be a nice side benefit. ALL that being said, sometimes it is best not to mix family and business, so just consider that, until you find a very good and reliable property manager you may have to fire a few. And nobody wants to fire their brother or cousin.

Happy to talk about MA specifics if you would like. There are some deals in Boston areas, but a good deal in even Dorchester is usually about 6-7 cap rate tops. (at least MLS) So it may not produce a bunch of cash.

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Aquila Kentish

OP

Member since 2021 · 3 posts · 8 votes

4y

@Andy Grizzell @Joshua Janus @Remington Lyman Thank you for your input and resources. I have been hearing about Ohio and looking into it. I am not familiar with the state at all, aside from the fact that they've been advertising in Boston, there are lots of billboards around here encouraging Bostonians to move their lives and businesses to Ohio lol. Aside from Columbus, can you tell me some good areas to look, I'm also considering a temporary relocation, as I have that flexibility right now, to really get to know the market of wherever I choose to invest. With that being said the things that are most important to me in a neighborhood are 1. Safety, 2. Cashflow/Appreciation Potential, 3. Job Opportunities. 4. Schools

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Aquila Kentish

OP

Member since 2021 · 3 posts · 8 votes

4y

@Jarrod Kohl

Thanks for the reply. In terms of Massachusetts- I have been looking mostly in Worcester, in the past I was super interested in, however not positioned to, invest there. I'm still looking to it, although it seems I missed all of the big gains by a couple of years. I haven't looked heavily into Lowell but I will. The Cape- have you invested there? Would you say this is primarily for short term seasonal investing or year-round?

For out of state- I definitely DO NOT want to mix family in my RE business in terms of helping me manage properties, but I am mostly thinking that I could leverage their connections and area knowledge. In South Carolina I have people who invest in the area, and all of my southern family owns at least their primary residence. I have family in Greenville, SC as well as the Myrtle Beach area, and I quite enjoy it there. I am hoping to invest in an area that I enjoy/could enjoy spending time in. For Georgia, I was thinking Atlanta and the Surrounding areas and in Alabama, I was just browsing all over.

Do you invest out of State? If so, how did you get started?

0 Reply

Patrick DruryBusiness Member

Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes

4y

@Aquila Kentish

I would recommend looking at Columbus OH. You can get good cash flow and solid appreciation at the same time. Columbus has a lot of job opportunities and population growth. Especially with Intel coming to Columbus as well as Hyperion, which is a company that makes hydrogen fuel cells. Columbus is home to the HQ of Chipotle, Wendys, White castle, L-Brands, and Hunnington. Columbus is also home to OSU, which constantly develops real estate, employs lots of jobs, and attracts students from the US and internationally to attend. On top of all of that, it boasts one of the best college football teams Ohio state buckeyes, which is very well known and has a cult following, and attracts a lot of people to the games.

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Alex Talcott

Attorney · Durham, NH · Member since 2019 · 292 posts · 126 votes

4y

If not going to scale in a market (and get discounts or other premium service there), I'd go for two $50k investments in syndications. I'm active in SC, GA, and AL and can offer recommendations. You're welcome to message me.

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Michael H.

Rental Property Investor · Worcester, MA · Member since 2014 · 47 posts · 41 votes

4y

I would consider a syndication. @Jonathan Bombaci leads a team of agents local to Mass and is working on raising funds for some large scale multifamily projects in NH right now. He has a good track record with these projects and could be a good hands-off avenue to put that capital to work while you focus on your career shift and family.

2 Reply

Bud Gaffney

Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes

4y

@Aquila Kentish congrats Aquila! Have you looked in Fall River, New Bedford?

1 Reply

Chris Levarek

Real Estate Syndicator · Phoenix, AZ · Member since 2018 · 903 posts · 1k+ votes

4y

@Aquila Kentish Start with your goals. If you want to learn more real estate and grow your portfolio then you choose the active investor route. You then go find an agent, lender, property manager and contractor in a specific market you select.

However, perhaps you simply want to earn passively on the 100k, then you go vet a few passive deals and select the one that best fits you.

The thing is, most on this platform will counsel either based on their experience or based on what they are offering. Neither is always best for you.

Decide first what want your life to be like, then select the investment path to get there.

My two cents is this, focusing on career and family seems priority for you. So ensure if you do choose to actively manage/own in a remote state or even locally, make sure you don't give up what are your priorities UNLESS real estate is going to be one of your priorities.

Ask me how I know! :) Either way you got this...

3 Reply

Katie Hole

Realtor · Myrtle Beach, SC · Member since 2017 · 39 posts · 11 votes

4y

@Aquila Kentish I am an agent in Myrtle Beach SC and would be happy to answer any questions you may have. Both Short and Long Term Rentals are in high demand here!

1 Reply

Wale LawalBusiness Member

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

4y

Hello @Aquila Kentish

I would highly recommend Houston Texas, as rental income growth and appreciation here are steady.

Happy to Help always...

Goodluck!

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Steve Redd

Rental Property Investor · Kansas City, MO · Member since 2018 · 23 posts · 21 votes

4y

Quote from @Chris Levarek:

@Aquila Kentish Start with your goals. If you want to learn more real estate and grow your portfolio then you choose the active investor route. You then go find an agent, lender, property manager and contractor in a specific market you select.

However, perhaps you simply want to earn passively on the 100k, then you go vet a few passive deals and select the one that best fits you.

The thing is, most on this platform will counsel either based on their experience or based on what they are offering. Neither is always best for you.

Decide first what want your life to be like, then select the investment path to get there.

My two cents is this, focusing on career and family seems priority for you. So ensure if you do choose to actively manage/own in a remote state or even locally, make sure you don't give up what are your priorities UNLESS real estate is going to be one of your priorities.

Ask me how I know! :) Either way you got this...

I really appreciate this advice. Well said!

1 Reply

Fernando E.

Rental Property Investor · SF Bay Area · Member since 2016 · 234 posts · 103 votes

4y

Quote from @Chris Levarek:

@Aquila Kentish Start with your goals. If you want to learn more real estate and grow your portfolio then you choose the active investor route. You then go find an agent, lender, property manager and contractor in a specific market you select.

However, perhaps you simply want to earn passively on the 100k, then you go vet a few passive deals and select the one that best fits you.

The thing is, most on this platform will counsel either based on their experience or based on what they are offering. Neither is always best for you.

Decide first what want your life to be like, then select the investment path to get there.

My two cents is this, focusing on career and family seems priority for you. So ensure if you do choose to actively manage/own in a remote state or even locally, make sure you don't give up what are your priorities UNLESS real estate is going to be one of your priorities.

Ask me how I know! :) Either way you got this...

@Aquila Kentish, the advice here are good but at the grand scheme of things, you need to identify with your goal in real estate investing. For example, are you in it for the cash flow or appreciation? How much effort are you going to invest in this project, active or passive? This will lead to the type of property - Single Family or Multi, location - out of state or local, etc. I'm in the same journey so I'm doing a lot of research while keeping my W2. As David Greene say, we have to be bullet proof, having reserves & solid income. Good luck!

Also great advice @Chris Levarek! I see you are in the Phoenix, AZ market, is the market still good for small multi? I appreciate the input.

1 Reply

Luther Wilson IIIPro Member

Real Estate Broker · Kansas City, MO · Member since 2017 · 536 posts · 292 votes

4y

Let's say you only use $70k and you keep the rest for reserves & such. Since you favor small multifamily properties and you have family members in certain states where you could potentially invest, your first move may be to start reviewing deals in those areas. Once you have a market pinpointed or while you're in the process of finding it - you're gonna want to dig into the financing portion to see how that could turn out. There's plenty of lenders out there who will fund a large portion of the whole project (purchase AND renovation). You might only have to come out of pocket 10-20% of the total project cost. It's likely gonna be private money or hard money. That's where leveraging that $70k would come into the mix. (Keep in mind, if you find the right type of deal - there are lenders that'll fund the whole thing!). Once you find the right deal you can BRRR that sucker out!

It’s sounds really simple, and in concept it is, however, executing on it effectively is a whole other story. You’ll need access to a solid renovation crew and an exceptional property manager. A lot of times there are realtors who are in your select market, who SPECIALIZE in and have EXPERIENCE doing and or helping other Investors do what you’re wanting to accomplish. They’re able to find and close off-market deals, they may be a investor or property manager themselves, and they may just have a virtual Rolodex of contractors & such. This is who you’ll want to find!

Let’s list out the steps to reiterate:

1. Pinpoint your market

2. Get your financing in order

3. Tap in with a seasoned operator (who specializes and is experienced in what you want to do).

4. Find a good off market deal

5. Close that sucker and BRRR it out!
(once you close you’ll have 12 months, maybe 24 months to do your value add, raise rents or whatever you plan on doing - and then you’ll need to refinance!

Hope all this helps! 🙂

2 Reply

Aj Parikh

Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes

4y

Definitely give turnkey a try. Its like a hack for the out of state investing strategy. Once you get a grip of managing remotely, you can expand your portfolio. Let me know if you want to connect.

0 Reply

Steve Olivier C.

Investor · NJ · Member since 2015 · 20 posts · 12 votes

4y

Hi Aquila,

Given the description of what you are looking for, it can be seen online some cases like the following example pictured here.

If you think it looks like what you are looking for, let me know and I will be happy to connect to share more details for such cases in MA or other states.

Good luck with your search!

1 Reply

Shawn McenteerBusiness Member

Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes

4y

House hacking is what me and my wife did with our first $100k, it go us to finacial freedom.

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Penny Brown

Realtor · Atlanta, GA · Member since 2021 · 98 posts · 54 votes

4y

Atlanta! Great market and I can help there. Montgomery is another town where you can find small multifamily units that you prefer and I have a few contacts there to help you! Best of luck!

1 Reply

Chris Levarek

Real Estate Syndicator · Phoenix, AZ · Member since 2018 · 903 posts · 1k+ votes

4y

@Fernando E. Sure, just competitive of course. Any of the Texas, Arizona, Florida markets are a bit overheated. At the same time, rental growths were 20-30% last year in many of these areas. I think Chandler even hit a 68% rental growth figure...Probably because everyone is selling in Scottsdale and moving to Chandler to rent to wait out the market :)

This being said, sales are slowing for sfh, but it's still expected double digit rental growth for 2022, which far surpasses traditional numbers or other markets for that matter. With high rental growth, means room for investment but also increased competition. I don't expect the Phoenix market to cool off as much as other markets though even with rates rising.

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How would you invest 100K if you were just getting started

How would you invest 100K if you were just getting started

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