New York City, NY · Member since 2016 · 41 posts · 10 votes
Good evening BP'ers,
If you were 30 years old on a 50k salary w/ great benefits, no debts with 80k in accessible funds. How would you begin your real estate investment journey with the idea of investing in NYC in what many say is a "sellers" market.
Would you invest in a sfh, multi-F, rentals, etc. Would you wait for the market to cool down? What would be a wise approach with the given scenario?
Any feedback is welcomed. Thank you.
Investor · Rochestser, NY · Member since 2014 · 84 posts · 13 votes
9y
Shiv, I live outside of NY in CT. I am from Rochester, and i have 8 rentals there that my brother manages for me.
With 80k, you have plenty of downpayment for a package of properties that could then be seller financed. I have a package that I'd be willing to discuss with you, and then also coach you through the process as I've learned a lot through the BRRRR process over the past several years. My properties all cash flow positively, and together, we could explore the numbers and options, etc. Why am I wanting or willing to sell? As an out of state investor, i have risk that I'd like to lessen. Rather than own property, I'm willing to accept less cash flow by holding rentals in exchange for interest income as a private money lender. My loan to you would be protected through a lien in those properties. Anyway, get in touch if you'd like to talk further.
Investor · Los Angeles, CA · Member since 2016 · 577 posts · 240 votes
9y
Shiv.
Great questions. I am about your age and I think with that type of money saved up at such a young age I would begin to build a portfolio of rentals and start to grow something large. With 80k you can buy multiple properties but they will not be in NYC. I invest only out of state and would love to help you get started. Shoot me a PM, lets chat.
Investor · Cleveland Heights, OH · Member since 2017 · 128 posts · 73 votes
9y
it doesn't hurt to have cash in reserves and not be afraid of an HELOC loan if you have a property you can use. Know that there are always deals out there, it's just the number of them that change. I would join a local real estate investing group to network as much as possible in an area u plan to invest in. Learn what it means to farm a good investment area. Hopefully the gent above can help out.
New York City, NY · Member since 2016 · 41 posts · 10 votes
9y
Thank you Antoine Martel and Ben Riechmann for your responses. I am currently working both a full time government job (working evenings 4-12) as well as full time (7 days a week) as a realtor.
My mission is grow my net worth and use the influx of cash on real estate investments. Everyone I have networked with in regards to my plan has indicated that the beginning in REI or any other business venture is always the hardest part. However, once you dive in, it only gets easier from there.
Upon entering the world of BP for the past several months and reading/listening to numerous articles/podcasts, I feel an individual will not know the true realm of the investment side until they dive in head first. I've worked with investors (as a realtor on both the buy and sell side) that have made mistakes throughout their real estate investment journey and I have definitely gained positive knowledge from it.
My approach is to jump into the REI side of the business however an uncertainty as to which area(s) of REI I should concentrate on according to the circumstances (salary, savings, etc) indicated in this post is what is holding me back.
Investor · Columbus, OH · Member since 2015 · 99 posts · 35 votes
9y
There are investors that live in expensive markets like NYC, then invest in Rochester, NY, Philly, Baltimore, I think you have many options you could go hunting on weekends while still have a normal job.
Inspector · Freeport, NY · Member since 2013 · 136 posts · 36 votes
9y
As said above, living in the NYC area, it is almost impossible to get started investing in this area without more capital or partners. That said, I also would look out of state in more reasonable area where you can purchase buy and hold properties. NYC is not conducive for that. Good luck.
Investor · Cleveland Heights, OH · Member since 2017 · 128 posts · 73 votes
9y
You can dive in but I would caution education. You are right that it gets easier over time. But that is as you learn more and make mistakes. REI clubs are great as you can learn from others mistakes without making them on your own. Maybe network with a mentor. As to New York advice that does sound like it could be sound advice. I was going to invest in certain areas when newer and learned from more experienced investors I could get into other markets with all the pros and non of the cons of to high property taxes or other factors that would have eaten into my return on investment. Also self financed investments from investors that didn't hurt my debt to income ratio with banks from REI clubs.
Investor · Rochestser, NY · Member since 2014 · 84 posts · 13 votes
9y
Shiv, I live outside of NY in CT. I am from Rochester, and i have 8 rentals there that my brother manages for me.
With 80k, you have plenty of downpayment for a package of properties that could then be seller financed. I have a package that I'd be willing to discuss with you, and then also coach you through the process as I've learned a lot through the BRRRR process over the past several years. My properties all cash flow positively, and together, we could explore the numbers and options, etc. Why am I wanting or willing to sell? As an out of state investor, i have risk that I'd like to lessen. Rather than own property, I'm willing to accept less cash flow by holding rentals in exchange for interest income as a private money lender. My loan to you would be protected through a lien in those properties. Anyway, get in touch if you'd like to talk further.
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
Shiv Choythani I like what a lot of what had already been posted in response to your initial question. But I do think you have to ask yourself: Why? What is your why. I think from there you can decide what you want to do. If you are going to acquire rentals in today's market I would make sure you have some equity in the properties so that if the market turns for the worse anytime soon you should be able to get through it. Just my 2 cents. Good luck in accomplishing your real estate goals.
Best,
Jorge
New York City, NY · Member since 2016 · 41 posts · 10 votes
9y
Thank you David Stott and Jorge Ruiz for your responses in regards to my inquiry. I am definitely looking to invest and I do not need to live in any of the properties, however I am, like all of us, looking strictly into gaining positive cash flow and using the property for buy and hold purposes.
I am willing to listen to any offers that make sense financially and I am willing to partner up or stay solo in order to make any deal(s) work.
Apparently, the income and accessible cash is there but the numbers (ROI) & project (long term buy and hold strategy or fix & flip) need to make sense both ways.
Contractor · Staten Island, NY · Member since 2016 · 147 posts · 38 votes
9y
Hey Shiv Choythani, and BP members. Im around the same age as you Shiv. I just recently got engaged and my fiancé and I are on the same page as far as investing in rental properties. Our goal is to have enough rental properties to supplement both of our incomes combined. We feel the best way to start out is by getting a duplex, living in one unit and renting out the other. Hopefully after some time we could leverage the 1st duplex into another rental property and keep that momentum so we can achieve our goals.
I have experience in general contracting I've learned from my father and my future father in law are both in that field. I would like to also work on flip projects down the road but I think the best way to get some capital is through rental income first then expand.
Investor · Cleveland Heights, OH · Member since 2017 · 128 posts · 73 votes
9y
Don't be afraid of good debt. When I ask you this question i dont want you to answer on here but think about this yourself. Is the 80k all the cash you have? A lot of times new investors with cash are afraid of debt and so put a lot more money into property then they should or have to. Cash is king, but have tenants pay off the investments for you. Life will throw curve balls and there may be times where you wish you had cash on hand. There are different ways you can get creative with financing. It is part of the reason the rich invest in real estate. There are deals you can set up with other kinds of investors. Food for thought.