I&#x27;m Finally Taking The Leap Forward

Account Closed

OP

New to Real Estate · NY · Member since 2020 · 6 posts · 13 votes

5y

Originally posted by @James Wilcox:

@Account Closed I agree with the prior statements and questions. Knowing why and where you want to be in 2021 is certainly very key. If you want any information on central KY feel free to hit me up.

Connected! Hope to discuss things more in depth with you.

Kwame Amoako

Real Estate Agent · Columbus, OH · Member since 2019 · 82 posts · 133 votes

5y

@Account Closed

You should consider Columbus, Ohio we've got a great mix of appreciation and cashflow.

5 Reply

Aristone Louxz

Real Estate Agent · Philadelphia · Member since 2015 · 41 posts · 39 votes

5y

@Jon Liang Great idea thinking of out of state investment since your living in NY. My first investment was across the bridge in NJ when I was living in NYC for that same reason, everything was way out of my price range. Where in NY are you? I would try looking at states or distances within a 1 hour drive at most for your first investment.

Account Closed

OP

New to Real Estate · NY · Member since 2020 · 6 posts · 13 votes

5y

Originally posted by @Aristone Louxz:

@Jon Liang Great idea thinking of out of state investment since your living in NY. My first investment was across the bridge in NJ when I was living in NYC for that same reason, everything was way out of my price range. Where in NY are you? I would try looking at states or distances within a 1 hour drive at most for your first investment.

I am located in the Westchester area. I was thinking about going a lot further, like somewhere in the Kentucky.

[email protected]614-665-5793

Zeke ListonBusiness Member

Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes

5y

Originally posted by @Account Closed:

After some inspiration and listening to the BiggerPockets Podcasts, I feel inspired to take the leap forward. I've come to a realization that I do not want to work a 9-5 job, making others rich and not having my own life until I'm 65 and retire, that is not the life for me.

I'm 23 and I've saved up a lot of money to start out my empire with so my risk tolerance would be on the higher side. I'm currently looking into buying rental properties out of state and start my empire from there, but I'm not sure where to begin. I'm looking into multiplex homes and I am able to purchase multiple properties at once with the liquid cash I have in hand, but I'm worried that the deals that I see on MLS are not "great deals" compared to what other people are getting.

I've done a lot of research into the markets I'm looking into and what type of property I want to put my money in.

The markets where I'm looking into would be Kentucky, Illinois, Idaho, etc.

I agree with @Kwame Amoako, Columbus, OH would be a good market to look into.

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Alexander Szikla

Real Estate Agent · New York City · Member since 2020 · 818 posts · 639 votes

5y

Do a house hack in NYC itself since you live nearby! 3.5% down via FHA lets you buy a whole lot of marquis NYC realty. Conserve the rest of your equity for other deals too or carrying for a few months (maybe a year).

Personally, I think all the folks who moved away are already getting bored and already coming back. Plus, the vaccine is getting rolled out which will curb the spread tremendously. Now is the time to buy.

Cap rates came all the way down to 3% (or below!) during the "boom" times but COVID has loosened everything up and now 5% can be had in Manhattan, 6%-7% in Brooklyn and even 8% in the Bronx. The kicker here is that rates are much lower than the 7% that OP noted. Today nationwide rates hit a low of 2.7% - so there has really never been a better time "spread" wise.

Long term, I think NYC will come back as it always has time and time again. I am also a great believer in investing when there is distress and deploying capital when you can.

If you are looking for yield in the short run, Manhattan may not be for you. However, it is certainly the most attractive it has been in years from a cash flow perspective. If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made. And there is still plenty of cash flow opportunities in the outer boroughs if you buy right!

Lastly, as your primary residence, a lot of equity appreciation will be TAX FREE ($250k exemption if single, $500k exemption if married) which is major.

5 Reply

Luke DeLaVergne

Rental Property Investor · Pleasant View, TN · Member since 2020 · 17 posts · 28 votes

5y

@Jon Liang

Huntsville has numerous tech companies moving in, 150 new people moving there daily, and FBI headquarters relocating there. Still can grab some low cost homes on MLS but have to make quick offers.

[email protected]832-776-9582 Podcast Guest on Show #469

Wale LawalBusiness Member

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

5y

@Luke DeLaVergne

Great point man

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[email protected]832-776-9582 Podcast Guest on Show #469

Wale LawalBusiness Member

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

5y

@Alexander Szikla

Love your explanation.

House-hack anywhere within 1 hrs away from the city won't be a bad idea provide it Cash-Flow.

Good luck 👍

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[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals

Remington LymanBusiness Member

Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes

5y

Originally posted by @Account Closed:

After some inspiration and listening to the BiggerPockets Podcasts, I feel inspired to take the leap forward. I've come to a realization that I do not want to work a 9-5 job, making others rich and not having my own life until I'm 65 and retire, that is not the life for me.

I'm 23 and I've saved up a lot of money to start out my empire with so my risk tolerance would be on the higher side. I'm currently looking into buying rental properties out of state and start my empire from there, but I'm not sure where to begin. I'm looking into multiplex homes and I am able to purchase multiple properties at once with the liquid cash I have in hand, but I'm worried that the deals that I see on MLS are not "great deals" compared to what other people are getting.

I've done a lot of research into the markets I'm looking into and what type of property I want to put my money in.

The markets where I'm looking into would be Kentucky, Illinois, Idaho, etc.

Have you considered looking into Columbus, Ohio as well? Similar midwest market.

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Account Closed

OP

New to Real Estate · NY · Member since 2020 · 6 posts · 13 votes

5y

Originally posted by @Remington Lyman:

Originally posted by @Account Closed:

After some inspiration and listening to the BiggerPockets Podcasts, I feel inspired to take the leap forward. I've come to a realization that I do not want to work a 9-5 job, making others rich and not having my own life until I'm 65 and retire, that is not the life for me.

I'm 23 and I've saved up a lot of money to start out my empire with so my risk tolerance would be on the higher side. I'm currently looking into buying rental properties out of state and start my empire from there, but I'm not sure where to begin. I'm looking into multiplex homes and I am able to purchase multiple properties at once with the liquid cash I have in hand, but I'm worried that the deals that I see on MLS are not "great deals" compared to what other people are getting.

I've done a lot of research into the markets I'm looking into and what type of property I want to put my money in.

The markets where I'm looking into would be Kentucky, Illinois, Idaho, etc.

Have you considered looking into Columbus, Ohio as well? Similar midwest market.

I have!

Ronnie Galindo

Realtor · Napa, CA · Member since 2018 · 112 posts · 77 votes

5y

@Account Closed I get your idea of OOS investing but I would caution you that it takes a lot. Reading David Greene's book will help (I am 3/4 of the way through it). I am in a worse situation than you (don't have the capital to go into bigger markets) so I am looking at Columbus, OH and Houston, TX but if you have capital, I would look around your neighborhood. If you want a deal you're gonna have to put in the work. Drive for dollars using apps like deal machine (which I just started doing here in Napa) and you can find some deals for sure. Also, I would recommend signing up to be a pro here on BP. The calculators alone are worth it! Just sign up for a webinar and they almost always give a discount code to take some money off the fee (don't worry, I don't get paid to endorse BP or deal machine).

Ultimately it will be up to you and how hard you work to get where you want to be, which I think we all are trying to get to which is being financially free. good luck my man and if you want to chat or anything, hit me up!

Jim Dean

San Francisco, CA · Member since 2014 · 7 posts · 3 votes

5y

@Jon Liang

Why Kentucky? What areas specifically?

Don SpaffordPro Member

Investor · Idaho Falls, ID · Member since 2016 · 912 posts · 629 votes

5y

@Account Closed You should look nearby you, maybe not in NYC but upstate NY has some good prices and deals. I've reviewed many over the last year around Syracuse. There are many others who still invest in your area, so it is possible. You could consider a house hack as well. I one or two hour drive for a good property may end up being better than one in another state where you have to completely trust others to make work for you. However, if you still want to look for properties in Idaho, feel free to contact me and I can help you find something in the Eastern Idaho region. Either way, Best of luck to you! It's great that you have learned about REI at a young age to get started early.

Rob Bergeron

Real Estate Agent · Louisville, KY · Member since 2017 · 1k+ posts · 1k+ votes

5y

Originally posted by @Account Closed:

After some inspiration and listening to the BiggerPockets Podcasts, I feel inspired to take the leap forward. I've come to a realization that I do not want to work a 9-5 job, making others rich and not having my own life until I'm 65 and retire, that is not the life for me.

I'm 23 and I've saved up a lot of money to start out my empire with so my risk tolerance would be on the higher side. I'm currently looking into buying rental properties out of state and start my empire from there, but I'm not sure where to begin. I'm looking into multiplex homes and I am able to purchase multiple properties at once with the liquid cash I have in hand, but I'm worried that the deals that I see on MLS are not "great deals" compared to what other people are getting.

I've done a lot of research into the markets I'm looking into and what type of property I want to put my money in.

The markets where I'm looking into would be Kentucky, Illinois, Idaho, etc.

Get it! Check out Louisville! Lots of out of state investors coming into our market!

Tyler Allison

Rental Property Investor · Idaho Falls, ID · Member since 2020 · 3 posts · 1 vote

5y

I am also just starting out in real estate. I am living in Idaho, feel free to reach out to me and I'd be happy to talk to you about the Eastern Idaho market. Best of luck!

Jason Calouro

Realtor · Mystic, CT · Member since 2020 · 8 posts · 3 votes

5y

@Jon Liang I would consider eastern, ct tons of multi fams to choose from close to NYC but without the price. Can find them for 120-160 range

Noah Chappell

Investor · Minneapolis, MN · Member since 2016 · 254 posts · 228 votes

5y

@Account Closed sounds like you're in a good position man. How much capital do you have? Probably best to pretend you have 10% of what you actually do, put the rest in a separate account, and use that 10% to get going. I think being well capitalized from the start can be a problem.. too easy to buy bad deals, no impetus to grind and develop that skill set. The last thing you want is several large poorly performing out of state properties and no money.. recipe for disaster.