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.
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.
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.
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.
- 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
@E Ibrahim Welcome to the forums. Happy to connect with you to discuss your strategy and opportunities.
Thanks @Matt Whitermore . Yes, that sounds great!