New investors needs help

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New investors needs help

Delbert Standifer
Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes

I'm new from California and have 30k I would like to invest in out of state.

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Christina Hall
Investor · Temecula, CA · Member since 2019 · 94 posts · 33 votes
6y

@Todd Rasmussen thanks for the cc!  
@Delbert Standifer we've completely abandoned the idea of a mountain cabin, at least for now. Todd is absolutely right, we've done a ton of research in BB and Arrowhead. Had a few offers on cabins, even the last one was a Foreclosure in lower Moonridge. The bank had 6 offers they chose ours and our agent didn't respond in time, so we lost it. In retrospect I think for the better. We were just in Arrowhead a few weeks ago staying at the Resort, huge snow storm, power was out to that part of the mountain ... snow plowing is at least $300 per job. And if you have an STR you have to make sure that the cabin is accessible to guests. Between that, bona fide STR insurance, costs of maintenance/deferred cost of maintenance, utilities, etc. It's true most people don't make a profit. The 2-3 beds we were looking at in Moonridge would max at 35k a year. You can prob get close to break even if you self manage it on AirBnB and run it like a business. The appreciation factor would be the only kicker for us. However, I don't think that market or any market for that matter will be appreciating tremendously in the next 5 years. We may look at it again in the next recession. Vacation homes in a recession have huge dips and you can almost always guarantee finding a bargain. That is the only way I think it would make sense - assuming you want to be profitable on it of course. We live in Temecula so our next purchase is actually going to be another Single Family here as a primary, and turn our primary into an Investment. All the best!

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  • Ryan Webster
    Member since 2019 · 89 posts · 65 votes
    6y

    @Delbert Standifer

    Are you an accredited investor?

    Have a net worth of at least 1 million

    Or make $200,000 a year or $300,000 for married couple?

    If so you have some great opportunities available to you. That can provide you a great return with not work on your part.

    If your non-accredited your going to need a partner in the market you wish to invest in.

    Or you will need to build your own investment team consisting of a, cpa, lawyer, broker, banker, and property manager.

    What are your investment goals?

    0Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    Actually my goal is to have 10 cash flowing properties in 3-5 years.

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  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    6y

    First I would try to identify the cities out of state that you might be interested in. Do you have friends and/or family in markets that you’d be interested. Did you spend any significant time in other states where investing may make sense? Location is the most important place to start and it’s better to start looking at places you know something about if are interested in first. We invested out of state in an area we love to vacation for. We knew the area well which gave us the confidence we needed. 

    Once you identify some locations then you can see if they are financial feasable.

    $30k is a decent amount but since you won’t be living there you’ll need to put 20-25-% down. If you’re looking to buy and hold that’s a budget between $100-$150k. Are you thinking of buying a condo, SF, or multi-Family?  So can you buy the type of property you want in that area based on this budget?

    That should be a good place to start. Once you do your research the next step is to visit the cities you choose, visit some properties, and interview some real estate agents.

    Goodluck! Real estate is a heck of a ride. Enjoy it! 

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
    WebsiteView Page
    1Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    Thank you for your response. My strategy now is strictly cash flow.  I'm looking into the Detroit area. Any suggestions?

    0Reply
  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    6y

    @Delbert Standifer you could start with a cash flowing property in OKC. In C class areas you can get 60k rentals at 8% cap rates. You could snag one with a 20% down conventional loan pretty easily. These are properties that don't need rehab to keep cash flowing and already have a tenant in place. The price point is approachable, guesswork is low and cash flow is steady. Is buy and hold the type of strategy you're hoping to utilize or are you needing to pull money back out after a flip in order to hit that 10 property goal in 3-5 years? 

    2Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    Thanks. Do you own any rentals in okc? My first property I want to buy and hold. Next I'll get creative and try to start the snowball effect. 

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  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    Im not sure how your getting 10 houses with 30k.

    But getting one for 120k or two for 60k is a very attainable goal.

    Good luck!

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  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    @Michael P.. Do you think 1 for 120k or 2 for 60k? Which will produce more cash flow?

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  • Ryan Webster
    Member since 2019 · 89 posts · 65 votes
    6y

    @Delbert Standifer

    Thats a very doable goal.

    Who will manage these properties?

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  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    Depends on the property type, single family? Duplex?
    Since your goal is 10 to reach your goal faster I’d go two instead of one.

    0Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    What state/city do you think is best for maximum cashflow?

    0Reply
  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    6y

    @Delbert Standifer in OKC you'll want to hit higher risk areas for maximum cash flow. Your property manager might be put through some headache, but you can REALLY max out cash flow if you go for some lower-cost areas. Alternatively, you could go into a more stable C class and move closer to $150/month net cash flow (after vacancy, maintenance, property management and of course your debt service/taxes/insurance.) 

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  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    @Alyssa Dyer what is a good strong monthly cash flow amount?

    0Reply
  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    6y

    @Delbert Standifer I've seen people get as much as $300/month in a higher risk areas. That's after everything I outlined above! The norm for OKC is closer to $150/month. 

    0Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    Can we dialogue 

    0Reply
  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    6y

    @Delbert Standifer I'm happy to answer any questions!

    0Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    @Alyssa Dyer, here is my phone number 3107382051

    0Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    @Jonathan Bombaci. What do you think about the Detroit area?

    1Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    @Kiera Underwood. What do you think about the Detroit area?

    0Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Delbert Standifer:

    @Jonathan Bombaci. What do you think about the Detroit area?

    Sorry I don’t know enough about Detroit to give you advice but I’m sure you can find an experienced investor and real estate agent on these forums to talk to and get some advice on the area. 

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
    WebsiteView Page
    0Reply
  • Alvin Neal
    Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
    6y

    @Delbert Standifer I can answer some questions about the Detroit area. What would you like to know?

    0Reply
  • Delbert Standifer
    OP
    Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    @Alvin Neal,what is the average cash flow on an 80k financed property?

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  • Alvin Neal
    Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
    6y

    The average could be around $200-$300 depending on a number of factors. Mortgage, Insurance, taxes, property management and vacancy etc. 

    0Reply
  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    6y

    @Delbert Standifer I am focused on the OKC market. I'd also recommend someone that's focused in Detroit! @Alvin Neal those numbers sound great! Are you consistently seeing net cash flow at that level? 

    0Reply
  • Alvin Neal
    Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
    6y


    @Kiera Underwood Yes it also depends on different areas.

    0Reply
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