First time investors

3 Replies

Hello everyone. My business partner and I have been long time silent readers and listeners and we’ve finally decided to take the necessary steps in purchasing our first investment property. We’ve been doing a ton of research and we have agreed that we want to avoid syndication and try to BRRR a few multi family properties on our own dime (5 units and up) to raise capitol and then eventually sell these smaller multi families to purchase larger complexes to hold and maintain cash flow. We both live in Long Island, NY where the market is more favorable to single family purchases so we are willing to invest out of state (in fact this is our current strategy) but we cannot agree on where the best location would be to invest. We want to try to focus our efforts on a single market as we start and have toyed around with Richmond, VA, Tampa, FL, San Antonio, TX, and Orlando, FL. We’ve decided it may be wisest to see what you all think with you’re personal experiences bearing in mind our strategy. Thank you in advance for any help you can provide and I look forward to your responses.

@Timothy Roberts , good on you for wanting to take action! It's so easy to get stuck in analysis paralysis (I know from experience!)... Some initial questions I'd have are:

  1.  What experience do you and your business partner have in real estate investment?.. I wouldn't recommend long-distance investing without having done the same type of strategy on a local scale first to understand the process intimately.
  2. How will you manage the BRRR? Do you have construction experience or will you be using turnkey provider?
  3. Do you have any trustworthy contacts you can rely upon in either of those markets with whom you could partner?... Unless you're willing to fly out every weekend, you'll be heavily relying upon new contacts to be your eyes and ears. Having someone you trust on the other side will help prevent miscommunication and ensure you don't get taken advantage of... This would be a more important factor to me than simply picking the "hottest" market.

I'm rehabbing a single-family house less than 30 minutes from my home while still working a job, and have been almost overwhelmed by the difficulty. I can't imagine the complexity of managing a business and investing long-distance... especially not as my first endeavor. 

Whichever market you are comfortable with, every market has value on some level, so all else being equal go with the one that you are most familiar/ comfortable with.

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