I am an interested in buy and hold investing but not quite sure which niche best suits this type of strategy. How can one decided on on which niche to use when they are still starting out as an investor?
I would really appreciate it if you can share how you came about developing a niche for your investment. I am all ears, or rather, all eyes since I will be reading your response to this post lol.
Thank you. :)
I will share mine.. I am fairly new beginner, so take it for what it’s worth..
Here are some guidelines I set for myself to narrow down what I am looking for
Tax benefits, appreciation, cashflow ( in that order given my tax situation at this point of time, note Cashflow is last on list)
Rent covers debt service plus repair reserves ..
Location : local ( preferred ) , open to out of state
SFR ( preferred)
Time period : 10 yrs
Properties less than $200k
New construction ( preferred) or something built after 2000
Would like to hear others..
Having a contracting background has helped me. Not having to hire contractors to make repairs and upgrades has saved me a lot of money. Not just that, but it has also helped me analyze a property much more accurately.
We do incredibly well with C-class properties in Indianapolis. There's a great price-to-rent ratio here. Proper rehabs, combined with great management, allows us to consistently make returns of 12-17% after all expenses. We typically buy only SFH's and Duplexes. We are all about cash-flow....we are not that concerned about appreciation, although we get some, as Indy is experiencing a lot of gentrification.
Like @Jeff Schechter said, class C duplexes to maximize cash flow. Us New Yorkers love our cash. However, we prefer more units than SFHs in Upstate New York's stable market. We buy our houses cheap and beat up, rehab, HELOC or refi out.
I recently started looking at wholesaling. The reason was simple. I am always looking for great deals. I actually started doing my own marketing to find off market deals and I quickly realized that if I found a great deal, others would be interested in buying it from me.
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