Okay, it's been several weeks since I posted here as a newbie, and several months since I've been lurking on the forums and listening to the podcasts. I've also had phone conversations with some of you and met multiple times with certain local REI's. I'm here to tell you I am NOT one of those peeps that will end up disappearing or never doing anything. However, after learning a lot about my local market (Portland, Oregon) and other markets, after hearing about your experiences and deals, and most importantly (for me) hearing and learning from @David Greene on the Podcast, I've refined my goals to the following.
- 1.Continue to keep my eyes open for potential deals in and around Portland and/or the Oregon Coast. (Coast strategy would be multi-family rental with one unit reserved for vacation rental and use).
- 2.Pull the trigger (soon) on a long-distance buy and hold or BRRR: multi-family. I'm looking at the Cleveland area.
Within the next 30 days I’ll be ready to move on strategy #2 above. I have a couple questions I hope some of you can help with:
- 1.I’ve heard some of you say that a property for $30-$50K is trouble (for various reasons). I’ve seen duplexes in around Cleveland for anywhere from $25K to $70K. This affordability is part of what draws me to the area. I’ve reviewed @James Wise Cleveland neighborhood map, and it looks like there’s definitely room in this price range even in B neighborhoods. Has anyone from out of state had good experiences buying in this price range and holding a cash-flowing multi-family rental? What are the warnings about?
- 2.Thanks to @David Greene, I know I need to build up my “Core 4” team in the area I’m interested in. Here’s where you awesome people come in. I want to build this team – preferably of people that already work well together. I would LOVE a recommendation for a ROCK STAR:
- 3.This is a random question â but after reading the thread (can't find it now) from the guy who developed the system for searching through podcasts, and after hearing many of you talk about offering some kind of valueâ¦â¦I'd like to offer value to others and contribute to the community. As a REI newbie, however, I'm at a loss as to how to do this! Soâ¦..I'm a college and university instructor in the areas of Business Administration and Management/Supervisory Development. I currently manage these two departments for Portland Community College as Faculty Department Chair. I also have my own business providing Leadership Development (Corporate Training) and Executive Coaching to (mostly local) clients such as Daimler (Western Star), Trimet, Oregon Dept. of Transportation, Bonneville Power Administration and others. WHAT IN THE HECK CAN I DO FOR YOU?? I'm serious. I want to be helpful. Holler if there's something you can think of :o)
Thanks for reading this super-long post. Aren’t you glad I mostly just read yours?
@Carolina Selva I buy 3-6 properties a month in the Pittsburgh market in which I also live. I also help hundreds of out of state investors here locally. Being out of state magnifies the hurdles for you 10 fold. Buying in a C area is ok but you need to realize that the low price will reflect the high management issues you may have. Buying in B and A areas you have little management headaches but the cash flow will be very low. In my opinion you need to build you team for sure and then focus on B and A areas. Play it safe for the first one and be ultra careful. Minimize your risk and be willing to learn from your mistakes and grow. Also dont ever give up. its through trial and error that you will succeed.
@Carolina Selva I can tell you that you aren't going to find a rentable duplex in a B neighborhood between $25K and $70K.....you'd be hard pressed to find one in most C areas. Properties that need substantial rehab are often listed higher than that range in B areas. Happy to help you evaluate specific neighborhoods- if you're looking at anything specific right now PM me.
There are cash flow opportunities here for sure, but purchasing a duplex in that price range as your first out of state investment will almost certainly be a mistake. You're going to wind up with a property that has at least a few significant issues, high tenant turnover, and constant disruptions to your cash flow. I'd recommend that type of property here in Cleveland for an experienced local investor only.
@Don Petrasek thank you so much for your input!
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