Hi my name is Eric. I am just getting into REI. I am looking to make my first purchase, I am interested in buying and holding, but also flipping. I live in the greater Seattle area on the North end and don't have the capital to invest locally. So I am looking outside my area. Not much close to home would work for me from MLS listings. I haven't found any off market deals, though I haven't really tried much, besides driving for dollars.
I have been considering investing remotely. It doesn't bother me not being able to visit the property. Technology negates most of my concerns regarding this. I would of course prefer to kick the tires on a property, but in the end I would be using a qualified professional, whether local or a thousand miles away, to keep me informed on pertinent information. I plan to use a property management company whether local or remote.
I currently have $10,000 I am willing to invest and another $10,000 I plan to use for repairs, vacancy, etc... I am able to set aside an additional $2000-$4000 per month specifically for investing. So I am considering buying a $30k-$50k SFR rental and testing the waters. If I like it, by then I should have enough saved up for another. I plan to stay in the same area, and hopefully build a small team there and then branch out to multi families and more expensive rehabs. If this is terrible idea please let me know!
I own my own business and work from home. I have built it up so it only requires about 20 hours per week to run. I love what I do, and I am happy with my financial situation, but I have quite a bit of extra free time now. And real estate has always been something that I have enjoyed researching, studying, and talking about even though I have never invested. I have always rented.
My major weakness is going to be networking. I love helping others, but I have a hard time asking for help.
All advice is appreciated and I look forward to becoming an active member on these forums and helping any way I can. Thanks
Welcome to the group Eric. There are a variety of areas you could invest in within the 30-50k market. Only thing I would say in that price point is the caliber of neighborhoods as well as the tenants. I tried that path and had to jump my price points up to the 75-125k range to get a better pool of properties and tenants to choose from. I also have found that I now have long term tenants as apposed to yearly or monthly. That's my experience with what you are proposing. Hope this helps and good luck.
Thanks! Did you invest locally or did you do it remotely? I have heard the quality of tenants is worse. I was considering buying in smaller towns instead of shadier areas to possibly get a better tenant. But I assume the downside would be having longer vacancies and also a harder time exiting. Appreciate your input.
I invested within an hr drive time. I agree with you on the lengthier vacancies and exiting availability. You could also do some research as far as government housing which actually places tenants for you and rents are guaranteed for the lower numbers. I have never dealt with section 8 personally but I do deal with hud housing and haven't had any issues there thus far and I've been doing that for 6 months now on 2 of my units as a test run.
welcome @Eric Turner and congrats on establishing a successful business. This site has been instrumental for me and like you, hate to ask for help. But do it!
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