A little help/guidance needed for a beginner investor!
Hello all! I'm Terry and new to RE investing. I reside in Astoria, NY, but it seems there are a lot more affordable opportunities for cash flow producing properties in Rochester, NY, opposed to Queens, Manhattan, and anything around here. Ideally, I want to purchase a property or two within the next month or so, but I'm a little unclear on exactly what the next steps should be since a) These would be my first investment properties and b) I'd have to find a property management company for homes that are so far away. Below are a few my questions for you experts out there. I apologize if these are incredibly simple and silly questions as I'm a true newbie. Any help/feedback would be GREATLY appreciated!!
- What should be my "plan of attack" next month when I'll be free and be able to travel up to Rochester? Do I try to group a bunch of viewings and properties together in a 1-2 week span? Is that enough time to see all the properties, get mortgages from a bank, close on a deal(s), and also meet with property management companies? Or can some (most) of that be done beforehand and while I'm in Queens?
- Is it a mistake to buy properties so far away and that will require property managers as my first RE investments?
- What comes first - contacting agents to view the properties OR finding the best property management company for potential properties? I almost feel like I don't want to buy if I don't feel good about a property mgmt company!
@Terry Huang Jr You can do a lot of this remotely. You can certainly get prequalified for a mortgage from where you are right now. I'd go ahead and figure out your financing first, then talk to property management companies. While your finding a good agent in Rochester, you can speak to agents about property management companies, as well as try to speak with other investor-clients of the management companies to find a good one. Then, you can see a lot of potential properties online, and go ahead and let your agent know what you are looking for so they can be on the lookout for properties that fit your criteria as well. Set up showings for properties, meet with the management companies, etc while you are in Rochester.
HI I am also new to the real estate investing game I have been doing tons of research and I am getting ready to start my own real estate investing company next month. I have spent hours of my personal time driving for dollars and I have found over 250 properties that I plan to market to in the Rochester/ Monroe county area where I live.
@Terry Huang Jr hi I’m a local Real Estate investor here in Rochester and you definitely right that the local market here in Rochester has a lot of affordable rental properties you can start with. As new Real Estate investor, I recommended start in your own local market to get the experience and nuance of running and operating a rental property. That my strong recommendation.
As other guidance above, connect with a lenders/mortgage brokers to get pre-approved/qualified so you know your price ranges.
If you consider using BRRRR strategy as part of your investment approach, consider local partner to work with. BRRRR allows you to build your own teams for long distance investing.
There is a lot of property management companies locally and I know three of them I network with locally. If you are open to work with a investor like myself, I’m open to work with you.
Let me know if you have additional questions.
Congratulations on your journey!!
Alex
Wow, this forum is great! Thanks so much @Jake Roland and @Alex Jones. Will definitely get pre-approved and get my finances in order as you guys suggested. I'm a bit worried about BRRR, particularly the REHAB part since i'm so new to this and since it's long distance. As of right now cashflow my main priority, and holding for 2-5 years is my plan, but who knows. Lot to learn and very eager to get started. Thank you guys again!
@Terry Huang Jr just for you to know where majority of your time may be spend. I have been spending a lot of time with Refinance aspect. Meaning I contact a lot of local banks, lenders and mortgages to really understand how things work locally, understand the rules, regulations and the requirements. For example, to what speed we could be able to refinance, what are their seasoning before bank or mortgage or lender able to refinance. I have been spending the most time there. This also allowed me to build up database of network with local banks, mortgage companies, etc... what I learn from them is that some allow you invest with LLC and majority required you to have the loans on your name.
Alex
Alex
understood! thanks again for the great advice @Alex Jones
@Terry Huang Jr Rochester can be a great place to come and invest for sure! I just started Investing, buying my first property last month. The one thing I would want to remind you of is to make sure who know bad areas from good here. I grew up here and I still had to look into it a lot. Some of the streets can turn bad really fast and that could cause issues with your tenants. I am a property manager in the Gates area if you have any questions send me a message and I will see what I can do to help out.
Thanks @Logan Graham! My best friend lives up there with his wife, who was born and raised there, so I definitely plan on visiting soon and doing my due diligence. Greatly appreciate the advice and might just message you soon. thanks again!
Considering pulling the trigger with a quad plex. All units are filled generating $1725 a month in rents. Roughly $105 in tax and $300 in operating expenses. I have a HELOC ready for $23k. I would put down 20%. The seller wants $79900 for it. I viewed the place myself and had concerns about a roof leak, foundation issues, and a damp basement area where HVAC is located. A friend (who did real estate for a while) suggested to offer 70k with the stipulation of everything passing inspection. The quad plex is right next to the police station and within walking distance to two universities. None of the tenants are college students. It would be my first time doing any real estate besides owning my own home for 15 years. Any thoughts would be greatly appreciated. Thanks