If You Were In My Shoes...

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If You Were In My Shoes...

Account Closed
Atlanta, GA · Member since 2017 · 17 posts · 4 votes

Hello My Fellow BP Users,

Let me first introduce myself. My Name is Shub, current residence in Atlanta, GA. I graduated in 2016 from Georgia State University with an Information Systems degree. I am employed as an Information Security Analyst at Anthem, Inc. I recently started getting into Real Estate Investing about a month or two ago. I became a member of the REIA group here in Atlanta. My goal is to have real financially freedom (this is in a border terms). I live with my parents (rent free!) and saved more than 80-90% of my earn income (I live like I'm broke). I am interested learning the different type of strategies of investing (please go in depth). I was thinking Buy & Hold and then renting it out (CF & Appreciation!) but, worry about carrying a lot of debt.

I am curious to know what would you do if you were in my shoes. I have somewhat of the money (save to invest!), I make the time to learn Real Estate Investing (usually 3-5 hours a day) and trying to create a network to help support it. I know the approach master a niche to get rich (Atlanta market but, waiting for the cooldown), and look where the trend is going?

Overall, I want to know what would you do if you were me? There’s no right or wrong answers, please criticize me.

Look forward hearing your responses,

-Shub Virk

1Reply
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Most Popular Reply

Chris Bounds
Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes
9y

Consider this, buy 1 rental per year for 10 years (see BRRRR strategy). Starting around year 5 you can sell one of your existing houses and use the proceeds to replace it with 2 more. At the end of 10 years you'll have 15 properties with cash flow and equity to build on. Run those numbers and plan how aggressive you want to run that strategy.

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  • Account Closed
    Investor · New York City, NY · Member since 2017 · 173 posts · 36 votes
    9y

    Don't wait for the cool down, buy in Atlanta now, the prices are high but so are the rents.  Go into debt, get used to it its no scary, you are in a safe rental city. 

    Get a duplex with 25% down, find an agent who knows what you want, make sure it pays off your mortgage and is in a good area with good tenants.  You DO NOT WANT YOUR FIRST DEAL to go bust, or you may give up on real estate 

    1Reply
  • Michael Kappel
    Investor · Acworth, GA · Member since 2010 · 30 posts · 6 votes
    9y

    I agree with Anthony, Atlanta is an expensive Market but rents support the purchase price if you buy right. Do not pay retail but try to get as close as you can to the 1% rule as you can.  Buy today and keep buying whenever you can - you will be amazed how fast you can get to financial freedom if you take calculated risks!

    2Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    Hi @Anthony, thanks for your response. Since Atlanta such a hot market, whats a good strategy to get a discount? Should i buy a property with already increase in appreciation? How much is too much debt before moving to the next property? -Shub :)
    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    Hi Michael Kappel thanks for your message. Can you please explain or direct me to what the " 1% rule" is? And, what a good strategy to keep buying more and more property. Like, when is it a good time to buy the next property or how do you when to? Thanks, -Shub :)
    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    Hi @Ryan Johnston, thanks for your message. Where would you recommend BP investor are buying and renting in Atlanta? And, the amount of cranes in Atlanta, looks to be a crash coming. My 15 years living here, I've never seen so much construction and development of rental apt in atlanta.
    0Reply
  • Account Closed
    Investor · New York City, NY · Member since 2017 · 173 posts · 36 votes
    9y

    Hello,

    I think you should accept that you won't get big discounts in Atlanta anymore.  But that's ok, there are still deals to be made, again depends on property and if seller is motivated. 

    Find a good agent who who will help you, look at 10 investments that fit your profile and budget range.  

    Buy it your first property in good area, appreciation very likely there.  

    In terms of debt, start out small, think about the worst case scenario. If you couldn't rent it for 1 year, could your current income cover the mortgage and other minor things?, if yes then buy it already. You are gonna learn more with your first property then 100 hours of classes.  

    Get started, show us some properties you like and I'll help the best I can 👍




    Originally posted by @Account Closed:

    Hi @Anthony, thanks for your response. Since Atlanta such a hot market, whats a good strategy to get a discount? Should i buy a property with already increase in appreciation? How much is too much debt before moving to the next property?

    -Shub :)

    1Reply
  • Ryan Johnston
    Real Estate Agent · Atlanta, GA · Member since 2016 · 127 posts · 48 votes
    9y

    This should give some inside on the current Atlanta apartment trend. 

    https://atlanta.curbed.com/2017/8/18/16164088/atlanta-real-estate-apartment-boom-has-peaked

    The 1% rule is getting 1% of the purchase price of the property as months rent - example 150k home rents for $1.500/month.  I would recommend reading through some of the editorial articles on the forums to get a feel for which route you may want to go.  

    1Reply
  • Chris Bounds
    Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes
    9y

    Consider this, buy 1 rental per year for 10 years (see BRRRR strategy). Starting around year 5 you can sell one of your existing houses and use the proceeds to replace it with 2 more. At the end of 10 years you'll have 15 properties with cash flow and equity to build on. Run those numbers and plan how aggressive you want to run that strategy.

    4Reply
  • Steve K.
    Denver, CO · Member since 2017 · 265 posts · 234 votes
    9y

    @Account Closed , your frugal savings discipline will serve you well.

    You remind me of real life success stories here on BP. Did you see what 

    @Joshua D. , @William Collins and @Austin Fruechting did in 5, 2.5 years and 7 years, respectively, buy using the BRRR method? Austin was featured in podcast #239 recently

    https://www.biggerpockets.com/renewsblog/biggerpoc...

    https://www.biggerpockets.com/forums/223/topics/459415-500k-net-worth-in-5-years-im-30-today?page=1

    https://www.biggerpockets.com/forums/48/topics/429980-officially-financially-free-at-32----exciting-day

    https://www.biggerpockets.com/forums/223/topics/445367-full-time-employee-multiple-brrrr-side-hustle-2875-to-goal

    or @Abraham Anderson did here:

    https://www.biggerpockets.com/forums/223/topics/47...

    If I were you, I'd use your savings to buy:

    a) property 1 via househacking a duplex/triplex/quadplex (only ~5% down payment if you're owner-occupied)

    b) buy 1 or 2 per year of fix/hold rental properties via the BRRRR method.

    Good luck.

    2Reply
  • Patrick Hartley
    Real Estate Investor · Portland, OR · Member since 2017 · 10 posts · 3 votes
    9y
    I agree with the others who have posted about investing now if you can. It doesn't matter if the market is really hot, just make sure you evaluate the deal before you buy. Make use of the bigger pocket tools to find out if a deal makes sense or not. If a deal doesn't work on paper looking at the numbers, then it will not work in real life. Make sure you buy according to the numbers and not by emotion. There are plenty of deals out there, if one deal doesn't work out just go to the next one. Don't get caught up in a deal and make a bad decision just because the property is cute. Look at the numbers! Good luck...
    1Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    @ryan ill look around and get back to you. Thanks! -Shub
    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    @chris thanks for the message. Ill look more in-depth on it. What a good min pricing range? I was think $250k? -Shub :)
    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    @steven k. Aww thanks! I will definitely look at all of this. Thanks again for digging up these supporting materials. -Shub :)
    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    Hi @patrick, thanks for the message. What analyzing tool would you recommend for this? -Shub
    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    Hi Curt Smith thanks for your message. Do you have any rentals in atlanta area? If so, what type and what do you do differently than other investors? Thanks, -Shub :)
    0Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    9y

    @Account Closed,

    Since you can move out and buy an owner occupied place, look for a really nice duplex/triplex and become a landlord!   That's a great way to start,  so you can continue to live rent-free without your parents!      

    3Reply
  • Billie Miller
    Real Estate Agent · Denver, CO · Member since 2014 · 151 posts · 101 votes
    9y

    Have you thought of house hacking? We started out house hacking and it was a great experience. We bought a duplex, lived in one side and rented out the other. We lived for free while we were there, and now that we have moved out, we collet $600 a month in rental cash flow. 

    It's a great way to get your living situation taken care of and a rental property bought with great, owner-occupied financing all at the same time.

    If you can find a property that cash flows well in Atlanta now, I wouldn't worry too much about it being at the top of the market. Historically, rents haven't been as volatile as housing prices. So even if the value of your property takes a hit, as long as your rent can cover your expenses you'll be ok. 

    I heard a saying once that went "The best time to buy real estate was yesterday, the second best time is today."

    2Reply
  • Steve K.
    Denver, CO · Member since 2017 · 265 posts · 234 votes
    9y

    @Account Closed , follow that link to @Billie Miller 's website/blog....she's got an inspiring story of  househacking a duplex. Highly recommended reading.

    1Reply
  • Travis Dawson
    Investor · Moscow, ID · Member since 2017 · 107 posts · 76 votes
    9y

    If I were you I would househack a triplex or fourplex, using the bare minimum cash you could. Run that for a few months, if you decide it is something you are into I would look into buying another triplex or fourplex.

    1Reply
  • Curt Smith
    Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
    9y

    Hi Shub, Yes I have around 10 in Norcross / Rossville and another 28 around GA. See the file I uploaded to my profile, down on the right, how to buy a bullet proof portfolio. I share all my tips. The #1 tip is join a REIA with a lot of honest and experienced folks to learn from re on the ground tactics.

    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y
    Hi @linda, thanks for posting. What price range would you recommend for duplex and/or triplex? -Shub :)
    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y

    Hi @Billie, thanks for posting. I was thinking that! I heard it has great tax benefits. How long did you live in that space? 

    -Shub

    Originally posted by @Billie Miller:

    Have you thought of house hacking? We started out house hacking and it was a great experience. We bought a duplex, lived in one side and rented out the other. We lived for free while we were there, and now that we have moved out, we collet $600 a month in rental cash flow. 

    It's a great way to get your living situation taken care of and a rental property bought with great, owner-occupied financing all at the same time.

    If you can find a property that cash flows well in Atlanta now, I wouldn't worry too much about it being at the top of the market. Historically, rents haven't been as volatile as housing prices. So even if the value of your property takes a hit, as long as your rent can cover your expenses you'll be ok. 

    I heard a saying once that went "The best time to buy real estate was yesterday, the second best time is today."

    0Reply
  • Patrick Hartley
    Real Estate Investor · Portland, OR · Member since 2017 · 10 posts · 3 votes
    9y
    Read the following book by : Frank Gallinelli What every real estate investor needs to know about cash flow... This book has no fluff or BS hype. He has done real estate for more than 40 years, and teaches a graduate-level course on real estate investing. You can find it on Amazon.com.
    0Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y

    thanks @Steve K.!

    Hi @Travis, thanks for writing. What the best source to use for finding and/or research those multifamily homes? 

    1Reply
  • Account Closed
    OP
    Atlanta, GA · Member since 2017 · 17 posts · 4 votes
    9y

    Hi Curt, thats amazing accomplishment! Thanks for the tip. What a great way to find multi-family homes?

    0Reply
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