Ready to take the plunge into REI

2 Replies

Hi Everyone, I’m at a point in my life where life is too short and I need to make my money work for me and plan for long term financial freedom and stability.

I am debt free, own a home in the NYC area (with mortgage) and have $70k that I am ready to use and buy a property or properties for my first step into Real Estate investing.

Since I live in an expensive part of the country I have been reluctant to buy locally and have been drawn to the south where homes are much more affordable. Buying OOS seems to eliminate the BRRR route as that seems to be more of a headache if the property is not nearby.

Is looking for properties with a local market realtor the best option, or just looking on my own for deals on Truilia, CREXI, Zillow, Roofstock, etc a better route?

Any thoughts on the Turnkey service providers that are on here?

Is a single family the best way to go or look for deals on a duplex - Quad better?

Would love some advice and direction on what would be the best option for my starting situation and how I can grow from there.

Looking to buy & hold and build a strong portfolio of rentals to generate strong cash flow is the ultimate goal.

Thanks for your time and looking forward to hearing from you.

Best,

Jeff

Hi @Jeff Collins ,

When you're investing out of state building a team is huge. And while you shouldn't limit yourself to only one avenue to get deals (like the MLS), you also shouldn't go on every single website and talk to every single agent and wholesaler and get lost without building any serious relationships.

If you're looking down south, I would definitely recommend the San Antonio, TX market I operate in. The price of entry is affordable, the appreciation is huge, and we have a diverse economy. I'm happy to help connect you to some professionals I work with for PM services, handyman or GC work, and anything else you might need. But make no mistake, this is a people business, and your relationships should come first. Once you have a trusted PM and a great source of properties, it's much easier to gain momentum.

Single or multi can be more profitable depending on the area you are looking to invest in. Some areas have tremendous SF appreciation and some crush rents in multi more than rentals of SF. I wouldn't focus OOS on your first property just because you won't learn enough and too much will be passive, which means you will lose more money even if you are making money. Turnkey you pay a lot of premiums and the spreads are not that great, but they can be fairly reliable as long as you confirm the renovation upgrade taxes have been confirmed. You are best served by deciding on an area you want to invest first - sometimes nearby like Westchester or Northern NJ, or an old hometown, or where you went to college so you have some advanced knowledge of the place - and then from there, you work on finding an investor-friendly agent, which is not easy, but easier on here. Your goals are the most important thing for your first choice. If you want to learn, you want it to be closer so you can touch it. If you have friends or family in an area, they can often serve as your eyes and ears if you choose to go OOS.