I am just getting started in the real estate investing industry, I have limited monetary resources at this time to buy real property in my home town of Los Angeles, CA, so I want to buy real property in another state were the property is much, much cheaper, and rent to government housing candidates. My goal is to start with a duplex with two bedrooms 1 bath per side, and then purchase 3 more, for a total of 8 units. What are some of the best strategy to incorporate to grow my business?
I don't do low income housing, so there's probably a lot you need to know that I can't tell you. However, you can search on BP for things like "low income," "Section 8," "Class C," "Class-C," and probably other things to get some knowledge. There are probably even blog posts about it.
If you're having trouble getting the down payment, try reading Brandon Turner's book on buying real estate with no and low down payment. I'd also recommend going through the podcasts as there's a good chance there's one or more that can help you. And I definitely recommend his webinars to help you find properties that will cost you less and how to figure out what you should be paying for them. You might not find the best deals just looking on the MLS and even if you find something on there, you need to know what to pay to make it a good investment. The BP Rental tool will help you with that. Though as a free member, you can only use it 5x.
I suggest you get the Pro membership if you are serious about your plan. You can use the tools as much as you want. Through Friday (11/02/17) there is a code to reduce the cost of Pro. It's 1101. You get a 20% discount. Plus, if you join now, you get grandfathered into the lower rate. When they raise the rates (in a few weeks), you'll get to pay this lower rate when it's time to renew. Great deal, huh? :-)
I forgot to address the out-of-state portion of your question.
Here's a blog post to help you find a location.
I also go to Sperling's Best Places to Live website and look up the housing stats (which tells me the percentage of renters and percentage of vacancies), crime rates, average home price, and more.
When you're looking at where to buy, consider that you need to go back there at least once a year to check on your property, so don't pick someplace you never want to go. lol
Don't forget to include property management fees as well as travel expenses (and of course, taxes, insurance, etc.) when considering whether a property is a good deal.
I'd search "out of state" and "out-of-state" on BP for blogs and threads giving advice on investing out-of-state.
Good luck! :-D
@Ralph Sutton Did you consider house hacking in Los Angeles? You can read more about it on my blog. I just posted a case study there. It's not about how much money you have, but how much mortgage you can qualify for. You can easily buy 2-4 units with 3.5% down or less. Your appreciation will be much better here versus out of state. Not mentioning the ease of management when you're local.
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