What should I do next in terms of investing?

Question

Hello,I recently started my investing journey by buying a turnkey property in Ohio. The property has had some hiccups but things are looking better now. I got some money in savings which I was thinking to put into another real estate investment. However at this point I have a few options and I confused-

1. My first option is to buy a new construction for less down payment and seller financing from the same company I did the turnkey deal with

2. The second option would be to go with another realtor who is helping me finding better deals like fixer upper deals or deals where I can renovate and make them into turnkey. This is also in the state of Ohio. I can use a second home loan and put less down payment here.

3. The third option would be to invest internationally. This is the option where I am most excited and leaning towards. I have two cities in mind - Tulum and Dubai. Dubai being the next big hub of everything and just being closer to India (my home). Tulum being a destination which I love. However, Tulum has more risk than Dubai as in Dubai the economy is not just dependent on tourism and there are no risks of things like the cartel etc.

my goal is to achieve FI asap, I am planning to buy rentals which give me good passive income. My goal is 3000$ in passive income and right now I am at 1200$.

would love some help from the community here. Thanks

Jimmy Lieu · Answer

Hi Vivan, I recommend that you look into Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

Kalyn Catlin · Answer

Hello! Firstly, congratulations on your first investment that is a huge win ! To answer your question these are a few things that I have found helpful

1) Look for groups/meet ups in your area that centralize around investing. Not only will you learn a lot but they also tend to post off market deals and market change information

2) Research markets around the country! Don’t limit yourself! Look for affordability and stability

3) Build a strong team to best set you up for success and who also want you to succeed! (Investment Real Estate Agent who wants to help you build a portfolio, a knowledgeable Insurance broker, a strong/communicative property manager, etc.)Hope some of this helped and good luck on your investment journey !

Bruno Demarco Quiroz · Answer

Hi @Vivan BhallaIt sounds like you're on a great path towards achieving your financial goals through real estate investment. The three options sound very interesting.

I’m a licensed and independent real estate agent in Tulum so I can share some information about this market. Tulum is indeed a popular destination with potential for rental income.

In the last few years, many properties in Tulum have achieved impressive returns ranging from 10% to 20%. However, it's important to note that the market has become more competitive recently, so today is more challenging to consistently achieve those high returns. Some segments of the market are even starting to feel saturated, and this might lead to more challenging conditions, especially with the influx of new buildings.

It's worth keeping in mind that the situation could change. The completion and operation of the Tulum International Airport and the Mayan Train are expected to boost demand.

The airport and the train are projected to be operating by December 2023, according to the official timeline. However, based on my firsthand experience of living here and my awareness of the construction progress, I have some doubts about this projected timeline, therefore I expect the demand should go up in one year or so.

I’m not saying it’s impossible to get good returns today, just that it is not as easy as in previous years. With the right property and a good management team you can achieve good returns. Today it is harder to find the right property and a good management team.

Regarding concerns about the cartel, it's important to note that it's not an issue in this part of Mexico.

If your investment is more focused on returns, I feel that Dubai sounds like a better option, as it is less risky and close to your home. If it is focused on the lifestyle of the Mexican Caribbean and having a vacation home a couple of hours from where you live now, Tulum is a great option.

I hope this information helps you and feel free to text me if you need any further info!

Best of luck with your investment journey!

What should I do next in terms of investing?

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