Howdy Bigger Pockets.
I've been wondering around the site for a few months trying to find some answers, which I have, but figured I better post up and hopefully get a bit of varied responses to my most pressing questions.
As the title states, I want to transition from a buy and sell investor to a buy and hold investor. I have been buying, rehabbing and selling homes with my father for a while now. We have done roughly 50 homes over the last 7 years, and have become quite good at it. We have our own crew and work closely with a few subs. My Father and Grandfather are both investors so I can say its in my blood! They are great mentors, but a bit old school and I'm always looking for new and creative ideas.
Anyways, this year I have taken the reigns as my Dad is retiring, and I plan to move my operation to Boise, Idaho. I have been wanting to move there for a number of years, and feel like I can really stretch my dollars there much more than California.
I will say I am very aggressive person and do things fairly full on. There are pros and cons to this approach, I know, but it just seems to be the way I operate. That being said my goal is to get to a monthly income of $10,000/month within 5 years (hopefully sooner). I plan to be working at investing full time.
So here is what I am working with:
$350,000 in cash
Living expenses saved for 12-18 months (after starting businesses in the past I know the importance of this buffer) Plus I have another stream of income that covers my expenses as extra back up.
Moving in March of 2016
Will have my Real Estate License in Idaho by then
Zero debt and two payed off vehicles (work truck and car)
Single 31 year old male with no dependents
With my rehabbing experience I feel I can take on the majority of projects, and plan to start building my crew right away in Boise. We have a dream team here of hourly employees. So I hope to replicate that.
I'm willing to continue flipping, but absolutely not full time. maybe 2-4 a year just to build more capital.
So with that being said my questions for all of you is...
What would you do if you were me?
What approach would you take? BRRRR method sounds very much up my alley.
What type of properties would you invest in? SF, 2-4 units, 5+?
What niches have you used? I work best in a well defined niche.
My hopes for this post are to come up with a measurable plan of action over the next five years to reach my financial goal. After that I can reevaluate. I'm truly open to all approaches. As I'm reading this post I'm realizing how blessed I am already and am really exciting and hopeful for this endeavor. I could keep writing forever, but this post is already long enough. I look froward to hearing from you all and thanks for your time.
I am still working on becoming the person qualified to answer your question here. Congrats on the progress you've made in real estate so far, most people are not willing to do what you have done to get there!
My short term goals are to buy, rehab and sell 7-10 properties while working full time to gain the ability to quit my job and flip full time. Long term, I plan on becoming a buy and hold investor with the same goal of having $10k in passive monthly income.
I am new to real estate investing and found BiggerPockets several months ago and my life has since been on a new coarse. I have made it a goal to listen to every podcast to date and a few that I believe would serve you well to gain knowledge in the buy and hold arena would be:
episode #26 with Chris Clothier
episode #48 with Darren Sager
episode #60 with Serge Shukhat
episode #64 with Josh Sterling
episode #80 with @Jonna Weber (local Boise investor)
and episode #133 with Jason Cohen
These are just a few that I have saved for later reference because I either found them super inspiring, motivational or really insightful in the buy and hold category. Check them out if you get a chance and connect at the local meetups when you get here in Boise. There are many professional people here in the valley that can point out the great areas for buy and hold investing.
Thanks for the response, Cody. I really appreciate it. I have been listening to a lot of podcasts and have found them to be highly valuable and inspirational. I will definitely download the ones you've mentioned.
I recently connected with @Jonna Weber and look forward to getting to know her and the other around Boise soon enough.
I will be making a trip out there later this month. I'm just finishing up a huge 6 week rehab and looking forward to a trip.
Are you in the Boise area, Cody? If you have any questions about buying and selling feel free to ask anytime.
Great Scott! I was born in Boise and raised in the surrounding areas. I know the streets fairly well and will be starting my career in real estate here.
I will be out of town the 15th thru Oct. 5th, but enjoy your time in the Treasure Valley!
@Scott Rist - Definitely looking forward to meeting you soon. I would say there are more opportunities in our market right now in SFH than multi-family. Some of your decision may depend on whether you want to self manage as well. In my personal experience, SFH's are a little easier to manage. You may want to start by concentrate on a certain area in the Treasure Valley, too. Enjoy the journey!
@Jonna Weber right now I'm open to both SF and MF. I definitely have a lot more experience in SF properties. I think, in the beginning, it will just come down to the deals I find and the cash flow they can bring.
I'm also toying around with a few niches to bring higher cash flows from properties.
@scott rist - Excellent choice investing in Boise! I have my rentals in Boise/Meridian because there is so much opportunity there and I am familiar with the area since I grew up there. Boise continually ranks in the top ten cities in all sorts of categories according to Forbes, Money Mag. etc, such as best place to live, start a business, raise a family, or own rental property.
The city next to Boise, called Meridian, is one of the fast growing cities in the US right now which means lots of opportunity!
I know this doesn't answer your original post since it sounds like you're already sold on Boise I just got excited hearing someone else talk about Boise. Do you have ties to Boise or Idaho? Just curious how you picked that location.
@Chris Kane Yes I do have ties to Boise in that I work as a river guide on the Middle Fork of the Salmon River out of Salmon and would always spend time in Boise when I would come out. I spent two weeks there a few years ago and really fell in love. A lot of guides and guests I've met over those Summers have been from Boise and always sold me on it.
I can't wait!
My Dad actually owns a few homes in Meridian and Nampa and I'm very interested in both areas as well. I'm used to driving 4 hours to houses we work on so 20-30 minutes to Nampa and Meridian is nothing.
What type of properties do you own there? What part of CA are you in?
Thanks for chiming in, Chris.
Before committing to anything explore the market and find what your comfortable doing. Each market is unique and has its share of niches. There are opportunities everywhere, I just wish I could create California rent in our market :)
See you when you get here