Looking to get into REI, starting with $140,000.
New to Real Estate · Long Island, NY · Member since 2023 · 23 posts · 14 votes
The thought of buying cash flowing rental properties interests me. However, I'm from Long Island, NY and cash-flowing deals are very hard to find. I'm considering purchasing out of state but don't know which markets I should look out or how to find deals in said markets. I'm 20 years old and have about $105,000 outside of retirement that I'd love to do something with. However I lack the confidence and knowledge to get started. Any tips?
@Erik R Aho, you'll need to leverage debt. As noted above, a non-QM loan product such as DSCR could be suitable if you don't have a W2 track record. However, before you do anything or speak with anyone, read "Long-Distance Real Estate Investing" by David Greene. I suppose house hacking isn't an option for you at this time? Everyone on this site will be pitching their markets. Make sure to verify all information and ideally speak with an experienced investor who acquires in the respective state before proceeding.
Hi Erik, My first recommendation to look at DSCR loans through hard money or private money lenders. These typically are not reported to credit bureaus and also do not affect your debt to income ratio which frees up your credit for personal loans that you may need in the future as well as does not limit you to the amount of loans that you can have as a buy and hold investor. Using DSCR loans gives you the option to use some of your cash up front instead of using all your cash reserves which also in turn allows you to grow your portfolio faster.
Hi Erik, Happy to chat with you about your goals and how investing in real estate can help you. Give you any feedback you may want.
Hi Erik, My first recommendation to look at DSCR loans through hard money or private money lenders. These typically are not reported to credit bureaus and also do not affect your debt to income ratio which frees up your credit for personal loans that you may need in the future as well as does not limit you to the amount of loans that you can have as a buy and hold investor. Using DSCR loans gives you the option to use some of your cash up front instead of using all your cash reserves which also in turn allows you to grow your portfolio faster.
Hi Erik, Happy to chat with you about your goals and how investing in real estate can help you. Give you any feedback you may want.
Hey Milton, I see that you're an agent. Do you work with many investors or do you own any properties yourself?
@Erik R Aho, you'll need to leverage debt. As noted above, a non-QM loan product such as DSCR could be suitable if you don't have a W2 track record. However, before you do anything or speak with anyone, read "Long-Distance Real Estate Investing" by David Greene. I suppose house hacking isn't an option for you at this time? Everyone on this site will be pitching their markets. Make sure to verify all information and ideally speak with an experienced investor who acquires in the respective state before proceeding.
@Erik R Aho, you'll need to leverage debt. As noted above, a non-QM loan product such as DSCR could be suitable if you don't have a W2 track record. However, before you do anything or speak with anyone, read "Long-Distance Real Estate Investing" by David Greene. I suppose house hacking isn't an option for you at this time? Everyone on this site will be pitching their markets. Make sure to verify all information and ideally speak with an experienced investor who acquires in the respective state before proceeding.
The thought of buying cash flowing rental properties interests me. However, I'm from Long Island, NY and cash-flowing deals are very hard to find. I'm considering purchasing out of state but don't know which markets I should look out or how to find deals in said markets. I'm 20 years old and have about $105,000 outside of retirement that I'd love to do something with. However I lack the confidence and knowledge to get started. Any tips?
I'd start with househacking. If you plan on being in the area for awhile it's the best way to become a landlord. I'd also get creative on the rental strategy. Look into rent by the room, MTR, or STR to see if any of those work in your area.
Each lenders states that they can lend in are different but typically you don’t have to live in the state you’re purchasing the property and the lender can be located in an alternate state as well. I am happy to visit with you about your options sometime. Feel free to reach out.
Hi Erik, Happy to chat with you about your goals and how investing in real estate can help you. Give you any feedback you may want.
Hey Milton, I see that you're an agent. Do you work with many investors or do you own any properties yourself?
I own 3 SFR as investments in Columbia MO, along with my 4th primary SFR in KCMO. two of the 3 investments have been gutted and rehabbed. I Bought a dental practice with my wife 2 years ago, so once we are no longer poor from that, plan is to convert 3rd property into a STR. Then plan is to merge some City lots I own in Columbia MO and build new construction triplex.
Then my plan is to begin investing in my local market of KCMO. For now though, I just assist local and OOS investors underwrite deals, and act as boots on the ground for my OOS investors. I am well versed in laws pertaining to STR regulations, which are extensive in my market.
start with a house hack. period. and remember that a house hack is about building long term wealth, not about cash flowing. you will likely still have to come out of pocket on your mortgage payment, which is fine.
please do not buy a random property thousands of miles away in a market you don't know anything about because someone on the Internet told you to. this thread perfectly illustrates the reality of cash flow in the first few years, which is this: there isn't any. in any market.
https://www.biggerpockets.com/forums/12/topics/1171104-the-m...
Congrats on saving that much being so young!!! Such an awesome place to be.
I'm bias, but house hacking is the absolute best way to get started in my opinion. You've built something up to the point where you don't want to lose it, and house hacking is a phenomenal entry point with incredible tax benefits.
I've house hacked twice in Reno, NV and it's already changed my life.
Completely agree w/ @Nicholas L.
The thought of buying cash flowing rental properties interests me. However, I'm from Long Island, NY and cash-flowing deals are very hard to find. I'm considering purchasing out of state but don't know which markets I should look out or how to find deals in said markets. I'm 20 years old and have about $105,000 outside of retirement that I'd love to do something with. However I lack the confidence and knowledge to get started. Any tips?
1. Whatever allowed you to have $105k at 20, do more of that. Your primary focus right now should be maximizing your income and keeping expenses low.
2. House hack in your appreciating market and forget the idea of cash flow hundreds of miles away. We all chase cash flow in the beginning only to own something long enough to watch it go up $100k+ in value. Once that happens, you figure out that cash flow can't touch appreciation. And the long term cash flow in appreciating markets is better bc the rents increase exponentially faster than in stagnant, cheap markets. Ask yourself, "Which property would I rather own in 10 years?" and let that guide your decision.
3. All of this is harder and takes longer than strangers on the internet make it seem. It's a long game. Slow and steady still wins the race.
The thought of buying cash flowing rental properties interests me. However, I'm from Long Island, NY and cash-flowing deals are very hard to find. I'm considering purchasing out of state but don't know which markets I should look out or how to find deals in said markets. I'm 20 years old and have about $105,000 outside of retirement that I'd love to do something with. However I lack the confidence and knowledge to get started. Any tips?
Hi Erik,
Great questions! I suggest working with a Direct Lender that covers multiple states and offers the following support: DSCR Programs | PreApproval Certificate Letter to let you shop with an approval letter in hand and Prequalification support for Properties in advance.
There are properties across multiple-markets out there... which can provide a nice positive cash flow while only using a portion of your available funds. After doing your first deal, it is just rinse and repeat for the second. By having funds for a down payment already and assuming credit is not a concern, then the focus is on the property, obtainable Rents, and Cash Flow. I Prequalified several properties last night, so I know they still exist.
Hi Erik!
I can help with understanding and knowing which markets to consider in the SE USA. I have 16 years of experience in investing in real estate in the SE. If you are looking for a turnkey property (meaning one that has already been rehabbed, rented and managed by the same company that sold you the property) then I can help you with your quest for providers in specific markets.
Feel free to reach out. Cheers!
@Erik R Aho
I'm from LI and I'm looking to get started as well. If I was your age I'd probably be house hacking right now. I can recommend some good books and a good local meetup I've been going to and networking with some successful people. Message me if you're interested. Good luck
The thought of buying cash flowing rental properties interests me. However, I'm from Long Island, NY and cash-flowing deals are very hard to find. I'm considering purchasing out of state but don't know which markets I should look out or how to find deals in said markets. I'm 20 years old and have about $105,000 outside of retirement that I'd love to do something with. However I lack the confidence and knowledge to get started. Any tips?
I too am originally from LI . I started buying rentals in the OH markets about 10 years ago, great double digit net caps, 25- 30% NETS back then. I now live in FL and do all my biz in OH, still getting 15- 20% nets. I just locked up a duplex rented for 19k a year, all in 80k. SF all in 70k, rented for 1300 sec 8, Much better than LI.
Erik, I'm big on investing in Detroit right now. I have 12-doors there personally and it's a great cash flow market with tons of BRRRR potential.
That said, given your age, are you sure this is the right path for you currently? I'd be looking in your own market (assuming you don't already own a primary) and finding something you can buy and live in that will appreciate aggressively.
Everyone here will try and sell you something based on what you're describing. And I'm happy to talk about Detroit if you really are adamant about buying cash flowing rentals today.
But I'd consider the alternative too.
1. Whatever allowed you to have $105k at 20, do more of that. Your primary focus right now should be maximizing your income and keeping expenses low.
2. House hack in your appreciating market and forget the idea of cash flow hundreds of miles away. We all chase cash flow in the beginning only to own something long enough to watch it go up $100k+ in value. Once that happens, you figure out that cash flow can't touch appreciation. And the long term cash flow in appreciating markets is better bc the rents increase exponentially faster than in stagnant, cheap markets. Ask yourself, "Which property would I rather own in 10 years?" and let that guide your decision.
3. All of this is harder and takes longer than strangers on the internet make it seem. It's a long game. Slow and steady still wins the race.
Erik, I'm big on investing in Detroit right now. I have 12-doors there personally and it's a great cash flow market with tons of BRRRR potential.
That said, given your age, are you sure this is the right path for you currently? I'd be looking in your own market (assuming you don't already own a primary) and finding something you can buy and live in that will appreciate aggressively.
Everyone here will try and sell you something based on what you're describing. And I'm happy to talk about Detroit if you really are adamant about buying cash flowing rentals today.
But I'd consider the alternative too.
Thank you, yes I think a good idea is to get situated with a primary first and concentrate efforts there. I'm definitely in the early stages and just want to jump in and get started but I think rushing in could hurt me.
The thought of buying cash flowing rental properties interests me. However, I'm from Long Island, NY and cash-flowing deals are very hard to find. I'm considering purchasing out of state but don't know which markets I should look out or how to find deals in said markets. I'm 20 years old and have about $105,000 outside of retirement that I'd love to do something with. However I lack the confidence and knowledge to get started. Any tips?
I too am originally from LI . I started buying rentals in the OH markets about 10 years ago, great double digit net caps, 25- 30% NETS back then. I now live in FL and do all my biz in OH, still getting 15- 20% nets. I just locked up a duplex rented for 19k a year, all in 80k. SF all in 70k, rented for 1300 sec 8, Much better than LI.
Hey Bob, did you start by investing out of state, or were you in Ohio when you started buying?
The thought of buying cash flowing rental properties interests me. However, I'm from Long Island, NY and cash-flowing deals are very hard to find. I'm considering purchasing out of state but don't know which markets I should look out or how to find deals in said markets. I'm 20 years old and have about $105,000 outside of retirement that I'd love to do something with. However I lack the confidence and knowledge to get started. Any tips?
I'd start with househacking. If you plan on being in the area for awhile it's the best way to become a landlord. I'd also get creative on the rental strategy. Look into rent by the room, MTR, or STR to see if any of those work in your area.
Thanks for this suggestion, I think maybe I'll speak to some agents in my area and see if there are any possible ideas for me to rent out a room while I move into a primary.
Hi Erik, Happy to chat with you about your goals and how investing in real estate can help you. Give you any feedback you may want.
Hey Milton, I see that you're an agent. Do you work with many investors or do you own any properties yourself?
I own 3 SFR as investments in Columbia MO, along with my 4th primary SFR in KCMO. two of the 3 investments have been gutted and rehabbed. I Bought a dental practice with my wife 2 years ago, so once we are no longer poor from that, plan is to convert 3rd property into a STR. Then plan is to merge some City lots I own in Columbia MO and build new construction triplex.
Then my plan is to begin investing in my local market of KCMO. For now though, I just assist local and OOS investors underwrite deals, and act as boots on the ground for my OOS investors. I am well versed in laws pertaining to STR regulations, which are extensive in my market.
Very cool thanks so much for the comments. What you're working on sounds awesome. Maybe I'll look into KCMO markets.
start with a house hack. period. and remember that a house hack is about building long term wealth, not about cash flowing. you will likely still have to come out of pocket on your mortgage payment, which is fine.
please do not buy a random property thousands of miles away in a market you don't know anything about because someone on the Internet told you to. this thread perfectly illustrates the reality of cash flow in the first few years, which is this: there isn't any. in any market.
https://www.biggerpockets.com/forums/12/topics/1171104-the-m...
Thank you for the comment as well as the link to the thread, its a great read.