Olympia, WA · Member since 2019 · 19 posts · 266 votes
I am a very new wannabe investor (have not bought my first investment...yet). I currently in Washington State. Buying property here is a bit expensive and I am definitely looking to find a market outside of mine. The biggest question is WHERE? This is the stage in which having a mentor would be crucial. But I have none, and now venturing out into this scary world on my own.
My goals? Well, ideally I would want to purchase a cash-flowing multi-family apartment (4-6plex). I have search near and far on sites like Loopnet, but I'm afraid without direction I'm just wasting time and energy.
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
6y
@Donald Thomas
My thoughts, save 3.5% and do FHA into a 4 plex or below. FHA will not do anything bigger than a 4 plex, and you can live in one unit and stay close to your tenants. Investing out of state for your first investment is not the path I would take although some here on BP would argue that point. I manage many doors but I own the 4 plexes all within a 30 min drive in each direction or closer. Do not let fear rule you, but make educated choices! I wish you my best
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
6y
Been doing this for three years now, and I ask myself the same question all the time. "Do I really know what im doing?"
I don't dare invest out of state, I need to be hands on. I need to see my rentals, and I need to communicate with the tenants. I invest in an expensive market, its doable. Its a lot harder to invest, but patience and hard work is a virtue.
@Donald Thomas
My thoughts, save 3.5% and do FHA into a 4 plex or below. FHA will not do anything bigger than a 4 plex, and you can live in one unit and stay close to your tenants. Investing out of state for your first investment is not the path I would take although some here on BP would argue that point. I manage many doors but I own the 4 plexes all within a 30 min drive in each direction or closer. Do not let fear rule you, but make educated choices! I wish you my best
@Donald Thomas
I have to agree with @Todd Powell here in his entire comment. Using the house hack on a 4 plex is a great way to get in and establish a good cash flowing property at a great rate. Perhaps sell your home and use the equity or simply rent it out for a year. You only need to be in the property 12 months and you can move back. That will give you plenty of time to learn to landlord as well.
Also, there are several investors here offering to meet up with you. Take them up on it and find your direction and plan. Then...EXECUTE and get in no matter what route. Surrounding yourself with people who know because they've done it is a great start. With that, you'll never drown!
I am a very new wannabe investor (have not bought my first investment...yet). I currently in Washington State. Buying property here is a bit expensive and I am definitely looking to find a market outside of mine. The biggest question is WHERE? This is the stage in which having a mentor would be crucial. But I have none, and now venturing out into this scary world on my own.
My goals? Well, ideally I would want to purchase a cash-flowing multi-family apartment (4-6plex). I have search near and far on sites like Loopnet, but I'm afraid without direction I'm just wasting time and energy.
Fam, what advice can you give me? Help!!!
Donald, I hope all is well. I would highly recommend looking into investing in large multi-family syndication. Going this route you can learn new markets, you don't have to do the day to day management of the property. You will receive a monthly income(depending on the syndicator). You will also receive large tax benefits by investing passively.
After doing this you may just love investing in larger deals because it means larger profits.
I hope this helps and I can answer any questions you may have for investing in syndication.
Looking forward to your success.
If you are looking to invest in another state. I would really do the research on the cities you are looking to invest in. Then start to look for the right property.
Rental Property Investor · Palm Desert ca · Member since 2016 · 101 posts · 72 votes
6y
@Donald Thomas I hear you with the scary feeling of not being able to invest in the city you live and work in ! I just did a YouTube video on my experience with out of state investing that might be helpful for you to watch . I live in NYC so we are in the same boat ! But don’t let that deter you and hold you back from getting started ! I’m excited to see what other members say about finding an investing market as I started off in Texas after reading an article about it haha and have settled on a high cash flowing market upstate. Feel free to reach out with any questions I can answer as far as investing out of state ;)
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
6y
Your best mentors are the hundreds of podcast guest that have been on BP podcast among others. Books are great too. If you know where to look you'll never stop learning.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y
@Donald Thomas there are some harsh responses here, but people are just opening your eyes to the reality that of the 100 people who say they "want to invest", maybe one actually does it.
Nothing happens until you take action. If you feel like you are drowning, it probably means one of two things. You are either drowning in information overload or drowning in excuses.
You can absolutely invest in Washington. In fact there are people investing in all 50 states. You will need to get resourceful to figure this out.
Here is some concrete feedback to help you:
- In state options include, looking at smaller markets within a couple hours or find a partner to invest with.
- Out of state options are plentiful. Pick five out of state markets and study the markets. Interview turn key providers and realtors in those markets.
We could give you a hundred suggestions, but at the end of the day, it is you that needs to take action. Good luck!
Whoa, whoa, whoa...easy now gentlemen. Obviously, I'm fragile. Headline is only for attention and could have multiple meanings. Sorry that you were disappointed in your interpretation. But I was not disappointed in some of the value that was dropped (including negative).
@Michael Haas Your response have given me a nice perspective of what my mind frame should be focusing on. I definitely appreciated that tidbit of information and advice. And @Jess Haas is correct, harsh...but valuable. :-)
@Ola Dantis Thank you for understanding my dilemma. Information can be overwhelming and at some points feel like I'm drowning in it. Everyone was new and unsure until they gain experience and confidence. Just a phase that I'm openly embracing and rather enjoying actually.
Many investors have been in your shoe at the beginning of their journey, so the idea is to figure out how you can start taking action.
I’m in that same boat! I know opportunity is out there. We just need connections. We’re in Vancouver, WA. We (my husband Keith and I would love to stay in touch.
Before you define your plan of attack, what are your goals? What do you want to accomplish? Without knowing where you are going, its going to be hard to get there. If you have never invested before, investing out of state is a bad idea (unless you have someone on the ground in the market you are looking for).
Mcallen, TX · Member since 2017 · 92 posts · 72 votes
6y
@Donald Thomas man 1st of your on BP asking questions and wanting to get started. Sometimes just finding the site and beginning to change your mindset are the hardest gears to grind. I'm from Seattle born and raised, but I live and invest in south Texas.
The best advice in my opinion is the FHA House Hack whether you own a home or not, now if that's not something you are willing to do then take the time to study markets. Do your due diligence and take action before REI becomes an afterthought! I'm currently working on acquiring my 2nd and 3rd 4-plex in the McAllen area. If your interested in investing in south Texas shoot me a message.
1. Narrow your goal so you can become very comfortable with the niche you have chosen. It's OK to research broadly to pick a niche but understand that there are bad investments in every niche. Be OK with the fact that you may pick sub-optimal investments in a sub-optimal niche. The diversity on BP is amazing. There are BP members investing in every area and type of market. Some would never buy anything less than A properties, others love mobile home parks and D-class properties. Some buy in primary markets where home prices seem ridiculous to the rest of us and other buy in rural areas where most of us wouldn't even consider.
2. Your objective for the first RE investment should be education and capital preservation.
3. Ignore advice from people who have no experience.
4. Be skeptical about salesmen and do your own research if a deal seems too good to be true.
5. Make some offers
6. Give yourself a reasonable deadline to purchase something. 6 months, a year, 2 years. And know that no investment is perfect. You will either win or you will learn.
Rental Property Investor · Colorado Springs, CO · Member since 2016 · 61 posts · 37 votes
6y
Hi @Donald Thomas - trust me I know exactly what you're thinking. I know there's a lot of advice that has already been given from folks far more experienced than me, but from one new investor to another, I did a lot of reading on the BP forums with searches such as "best rental markets" an watched a lot of youtube videos of much the same. Although a bit overwhelming with so many different places to look into, I selected one or two locations that I've visisted in the past and am familiar with the area. As a new investor I want to get the dynamics of researching, analyzing and then closing the deal.
I've been stationed in Georgia and currently in Arizona with the Army. As a result, these are two areas that I've gotten to know pretty well and feel comfortable researching and investing in. Best of luck! Feel free to reach out if you have any other questions!
Rental Property Investor · USA · Member since 2018 · 325 posts · 222 votes
6y
@Donald Thomas
I just finished my market research for my target area to invest in. In a nutshell I looked for population growth and jobs growth. I think the surrounding areas of Seattle could be ideal too. Plus WA is an income tax free state so there is another advantage. Best of luck.
Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
6y
@Donald Thomas congrats on the start to your journey! BP can be an amazing resource to help you achieve your goal. The best bit of advice I'd offer a newbie is to create a plan (get it on paper) and define your goals (write them daily). Wanting a cash flowing multi is a good start but, how much cashflow are you in search of? Whats your time line etc? The more specific you can be with your goal and your plan the bette(note the plan and goal will change a bit from time to time and thats ok).