Newbie overseas seeking financial independence through apartments

3 Replies

Hello BP family,

I am a long time lurker and first time poster. My interest in RE investing has largely been theoretical, but I am currently in the process of plotting my first investment(s). 

A little about me

I am an American currently living and working in Saudi Arabia. My competitive advantage is my ability to save and I have been able to save a little over $200k after nearly 10 years in the workforce (despite never making over $48,000K per year). From this amount, I would like to set aside maybe 180-200k towards a multi-family/apartment building purchase. The rest of my money would stay with me in a personal emergency fund. I have no debt, and have always been interested in owning tangible assets, so syndication/note investing/stocks are not really interesting to me though I do own some stock.

I have not really enjoyed my time in the workforce and would like to leave my job within the next 6 to 12 month. I hope to position myself before then with a sustainable, fairly passive and cashflowing asset that can cover my living expenses.

My goal

To generate as much passive income as possible to live off of, so that I can pursue work I enjoy, take more career risks and take mini-retirements when needed. I have been perusing loopnet and crexi and looking at some due diligence docs, and I have found that my sweet spot might be apartments because I could put 25% down, have a few grand left in reserves for the property and after all expenses and mortgage payments, I could have about $2,500-3,000 a month. This amount would easily cover my expenses for my family of three while I continue to live overseas and take advantage of low cost of living or come home if I like.

It feels like having my cake and eating it too, as I could potentially have a cashflowing asset, with renters building equity for me while also increasing my net worth. If all goes well, I could in future do a 1031 exchange into something bigger and continue that relatively easy-going strategy and slowly but carefully build wealth.

My strategy

At the moment, I am not interested in doing tons of deals, scaling quickly, flipping or rehabbing. I am in the market to simply own a building that is stabilized, with a good PM in place, no deferred maintenance, fully occupied and in an area that is fairly safe and has decent fundamentals ( not dependent on a one/few employers, population not in rapid decline).

I have found properties in my price range in Central PA, Upstate NY, and in the Chicagoland area. 

I am currently in talks with some brokers, and turnkey companies. I spoke to REI nation recently and found that my money would buy me three SFRs which would generate $700-800 USD a month, which is well below my goal amount. I have a call with Derosa group soon, I want to pick their brains about some turnkey multifamily properties they might have.

I am aware that being overseas is also challenging given that this might raise financing issues and also difficulties in networking and building the right team. I am doing my best to get educated (thanks David Greene) and have read a few books on the topic and am currently in the process of devouring relevant books, podcasts and threads in the forums. I am also in talks with a lender that works exclusively with Americans overseas, and when/if I find a property that looks good, I can run it through them to see what they can offer, and then from there expand my search for the best terms.

Conclusion/Your thoughts

This is what brings me out of the shadows and into the forums. I would appreciate any feedback, contacts, critiques or advice you may have. 

Thank you!

TL;DR ...
-Overseas American
- looking to invest in commercial multifamily in order to generate at least 3,000 per month.
- 180K in cash to put towards a property
- first deal, no previous landlording/REI experience