New to RE investing .All advice is highly appreciated

Investor · Richmond, VA · Member since 2023 · 459 posts · 474 votes

2y

Be careful with using something like a HELOC, make sure you understand how high and how quickly the interest rate can increase and whether you can afford the payments.

If you have no idea about an area then do not invest there. That would be speculating not investing. Take the time to educate yourself about the area, the specific deal and how to properly analyze a deal. One of the tests of a deal that filters them for us is my wife considering whether she would have wanted to live in teh house and raise young children there. This has helped us select properties that appeal to young families and has led to long term tenants with low vacancy.

SFH is a great way to invest in RE but is not a get rich quick path. While cash flow is really nice, often the biggest return is via appreciation, increased equity takes time to leverage.

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Cody Lekberg

Realtor · Macon, GA · Member since 2020 · 25 posts · 13 votes

2y

What Glen said is right on. Using a HELOC is incredibly risky, especially for someone just starting out in real estate. I actually used to live in Suwanee and now am a Realtor down here in Macon. It's a great area with a lot of opportunity for investment, but I would really caution you in using the equity from your primary residence to invest in an area 2 hours away in an industry you don't have a lot of knowledge in.

Feel free to reach out to me to discuss if you would like. I work with a ton of out of town and new investors looking to buy in the Middle Georgia market.

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Jimmy LieuBusiness Member

Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes

2y

Quote from @María Del Pilar Polo:

Hello to everyone,

After working in Dental Hygiene for 22 years my body is telling me to stop (pain in left shoulder and possible future surgeries). I truly love what I do and helping my patients unfortunately I know I will not be doing this much longer. I need to find a different source of income to be able to support my family . That is why I am here today.

I have always been interested in Real Estate and I believe this path will bring me to a financial stability.
I have listened and read several books already regarding RE investments and I'm sure I would like to start my journey with SFH long term rentals but have no idea where. I'm currently in NE Georgia (Suwanee) house here are extremely expensive and I don't believe a good renters market.
Some friends have advised Macon or Columbus but honestly I have no idea how to determine if an area is good or bad for long term rentals.

I will appreciate so much any info, help or connections (even friends ) I can make to start my journey in a positive way. I have taken a huge risk by taking a HELOC to be able to start this path and I'm am a bit scare to lose it all. I have two kids that depend on me and cannot afford to make really really bad mistakes . I am willing to learn from any of you any tips and any knowledge that might help me.
I’m grateful for any insight and advice anybody can provide.
Thanks for taking the time to read my post

Hey María, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

[email protected]614-300-7535

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Samuel DioufBusiness Member

Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes

2y

Hey María!

When doing research on areas that you're interested in, I would identify industries with positive growth trends, analyze market reports, industry publications, and economic forecasts, consider emerging markets and technologies.

Personally, I invest in Columbus. I believe there will be high appreciation here, due to many large companies pumping money into our area, such as Intel, Google, and Amazon.

[email protected]614-662-1652

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Michael Dumler

Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes

2y

@María Del Pilar Polo, as noted above, real estate investing is not a get-rich-quick strategy. While real estate investing is heavily pushed, there may be other investment strategies worth exploring depending on your financial position. I would recommend the book, "Real Estate By The Numbers" by J Scott and Dave Meyer. This is a good resource and overview of how you should be thinking regarding your finances and how your money could/should be working for you.

What have your friends mentioned about Macon and Columbus (I believe she's referring to Columbus, GA folks)? What are their strategies in the respective markets? According to my understanding, both areas only cater to one industry, the military. Many investors' whole strategies are built around military bases. It's a viable strategy but also presents a risk if the base shuts down (evidently leading to a population decrease).

Will the HELOC be used as a full-cash purchase or sourced as a downpayment? You're assuming even more risk if it's the latter.

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María Del Pilar Polo

OP

GA · Member since 2024 · 3 posts · 3 votes

2y

Quote from @Glen Wiley:

Be careful with using something like a HELOC, make sure you understand how high and how quickly the interest rate can increase and whether you can afford the payments.

If you have no idea about an area then do not invest there. That would be speculating not investing. Take the time to educate yourself about the area, the specific deal and how to properly analyze a deal. One of the tests of a deal that filters them for us is my wife considering whether she would have wanted to live in teh house and raise young children there. This has helped us select properties that appeal to young families and has led to long term tenants with low vacancy.

SFH is a great way to invest in RE but is not a get rich quick path. While cash flow is really nice, often the biggest return is via appreciation, increased equity takes time to leverage.

0 Reply

María Del Pilar Polo

OP

GA · Member since 2024 · 3 posts · 3 votes

2y

Thank you for your replay. I'm currently enrolled in the classes and seminars of Rich Dad and Poor Dad to learn as much as I can before taking huge risk however the HELOC is the best way for me to get some cash to invest. I'm not planing to spend it all at once. Thanks for the tip on your wife's perspective regarding the area where to buy. Is there any web pages you can recommend for me to start doing my research on a specific area. Thanks again

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Glen Wiley

Investor · Richmond, VA · Member since 2023 · 459 posts · 474 votes

2y

Quote from @María Del Pilar Polo:

Thank you for your replay. I'm currently enrolled in the classes and seminars of Rich Dad and Poor Dad to learn as much as I can before taking huge risk however the HELOC is the best way for me to get some cash to invest. I'm not planing to spend it all at once. Thanks for the tip on your wife's perspective regarding the area where to buy. Is there any web pages you can recommend for me to start doing my research on a specific area. Thanks again

We start with zillow to see what's for rent and at what price. My wife checks almost daily and over the years has acquired a very good sense of what the market will bear in our area. There is nothing like long term repeated exposure to give you a sense.

We regularly drive around looking at rentals if they are in the area with ours or are comparable.

Pretend you are a tenant looking for a rental then do what that person would do - actually search, make some calls etc.

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Alfath AhmedBusiness Member

Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes

2y

Quote from @María Del Pilar Polo:

Hello to everyone,

After working in Dental Hygiene for 22 years my body is telling me to stop (pain in left shoulder and possible future surgeries). I truly love what I do and helping my patients unfortunately I know I will not be doing this much longer. I need to find a different source of income to be able to support my family . That is why I am here today.

I have always been interested in Real Estate and I believe this path will bring me to a financial stability.
I have listened and read several books already regarding RE investments and I'm sure I would like to start my journey with SFH long term rentals but have no idea where. I'm currently in NE Georgia (Suwanee) house here are extremely expensive and I don't believe a good renters market.
Some friends have advised Macon or Columbus but honestly I have no idea how to determine if an area is good or bad for long term rentals.

I will appreciate so much any info, help or connections (even friends ) I can make to start my journey in a positive way. I have taken a huge risk by taking a HELOC to be able to start this path and I'm am a bit scare to lose it all. I have two kids that depend on me and cannot afford to make really really bad mistakes . I am willing to learn from any of you any tips and any knowledge that might help me.
I’m grateful for any insight and advice anybody can provide.
Thanks for taking the time to read my post

From one investor to another investor, do not quit your job yet. People like to paint real estate as a way to get financially free. Yes it is true, but it is not immediate.

I recommend looking in Columbus because of the appreciation and rent growth opportunity. Big companies like Intel, Amazon, and Google are building here. Smaller tech startups. Over the past 5 years, Columbus has excelled everyone's expectations.

I can send your a neighborhood grade map that I made that shows you the different areas here in Columbus. I also built a spreadsheet that has contractors, roofer, plumbers, etc...

Happy to help.

[email protected]614-802-5698

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New to RE investing .All advice is highly appreciated

New to RE investing .All advice is highly appreciated

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