Brewster, NY · Member since 2019 · 68 posts · 19 votes
Hello BP,
I have been lurking on BP for months reading posts and listening to podcasts, Studying real estate reading books. I worked on my credit (743) and obtained a second job. I also obtained a partner from work that wants to go into real estate with me.
So this takes me to my point, now that I believe I have all my ducks in a row, I am getting cold feet. I don't know where to start looking, I don't know if I'll get a good deal. What if I jump to a bad deal and can't find good renters for the property I acquire, the market I live on is to Expensive, these are all the things running trough my head.
So I took the next step and called an Agent in the Utica NY area (3 hours North from the city) to start looking at Multi Family homes up there.
What are some good questions to ask an Agent to make sure you're working with the right one? On my visit what should I look for?
I know some about Due diligence (check for liens, taxes ect). Basically what advice can you seasoned investors give me before I take the leap.
Investor · Canton, GA · Member since 2014 · 727 posts · 500 votes
7y
Wait until your dead, the downside risks will have been baked into the cake by then.
Just kidding.
Your not ready. Take it in small bites that are comfortable for YOU. You don’t have to eat the entire hamburger in one bite. Partner up, tag along, etc. Keep filling up your knowledge bucket and it will spill over and fill your confidence bucket with time. You’ll know when YOU are ready.
Upper valley, NH · Member since 2019 · 29 posts · 14 votes
7y
From what they say, you're never ready, you just have to take the leap. We we actually about to buy in Maryland, NY last year but the deal team a ground, but i did gleam a little insight from that ordeal. If it's on a well do a full water test, if it was built by the seller scrutinize everything, and a title search can save you alot off heartache.
Oh and oh a side note one of the best home inspectors I've ever had the pleasure of working with, i met through that deal. If you're looking for a reputable home inspector i can send you his contact info.
When I first started, I found myself at the same point you are now. I finally asked myself what it was that I was afraid of. I found that the things that I was most afraid of could be remedied somewhat easily. I had done my homework, re-ran my numbers, had a rough plan (that actually got thrown out and rewritten as soon as I started) but I still worried. I was making myself crazy for nothing.
Ask yourself the same question. If the worst case scenario can’t be reasonably remedied, perhaps shift your plan that would make you feel less risk averse.
But DO NOT STOP. It sounds like you’ve done plenty of legwork to make your plan come together; you wouldn’t have done that if you didn’t have at least some faith in your success. Stick with it. God is close to the risk taker.
Brewster, NY · Member since 2019 · 68 posts · 19 votes
7y
@Clint G. Yes that's the number 1 advices I've gotten. Get an agent that also invests. I think I'm just gonna take my time on my first property. Establish the right team and get the experience. If I find a good SFH then I'll jump on that. It all depends on what comes my way. Thank you Clint for your response.
Brewster, NY · Member since 2019 · 68 posts · 19 votes
7y
@Timothy Smith
Yes I’d like the contact info. I’m in the process of building a team. I definitely will dot my i’s and cross my T’s as best as I can. Thank you for your response.
Brewster, NY · Member since 2019 · 68 posts · 19 votes
7y
@Marilyn Cuevas
I run my numbers and they look good. The one thing that really gets to me is the supply and demand. I wouldn’t want to be sitting on a vacant rental for long. I will visit the area I want to invest in and try to remedy those concerns. Loved your post thank you for your response.
Waipahu, HI · Member since 2018 · 121 posts · 81 votes
7y
I would make sure your reserves are adequate. At least 6 months of expenses available, and just accept the fact that you will most likely have to use it to fix some mistakes or unseen issues that will arise. I would think of it as my RE Tuition. This is what I have to pay for the hands on intern part of my education. Hope this helps. Let us know how it goes.
Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes
7y
@Jose Gonzalez your profile says your in brewster. Good town I like it there.
welcome to BP great place to pick up knowledge.
got a few questions you should
think on.
what’s the price point your looking for....
I’m pretty sure you could find property a lot closer to your location. Long distance investing is fine if you have to but it adds a bit of complication you might not need.
I’ve bought multi family houses with tenants for 50-75k within an hours drive of Brewster.
not to dissuade you from utica could be a fantastic place to invest but away good to think things through.
Brewster, NY · Member since 2019 · 68 posts · 19 votes
7y
@James Murphey
That’s good advice. I’ve tried to save up as much as possible and still am. My reserves depends on how good the deal is. I will keep updating throughout my journey. Thank you.
Brewster, NY · Member since 2019 · 68 posts · 19 votes
7y
@John Hickey I’d love to hear more from your investments near Brewster. That’s exactly my price range starting off 70 to 100k is the target. Thank you for your response.
Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes
7y
@Jose Gonzalez with that amount you can choose to do sfr or multi closer to home.
I think the problem will be that your parameters are too tight to get a lot of choices locally.
If your set on Utica I would make yourself an expert on the market. That’s what I did when I moved to my market and I never have to wonder if I’m getting a good deal.
Spend a lot of time walking up and down blocks till your familiar with the types of houses, prices and of course the problem areas of the city. It might be tough but worth it to drive up a number of times at different times of the day. Stuff that seems calm at 2pm can get pretty crazy any 11pm. And that’s not only commercial. I was recently looking at buying some stuff and it looked like a sleepy residential block. By 6pm it was nuts.
Brewster, NY · Member since 2019 · 68 posts · 19 votes
7y
@John Hickey I am planning on taking my first trip up there next week. I will stay in the area for two days to check out as much as I can. I will be meeting with a local agent and also an investor. Starting off I don't wanna rush so i am taking my time.
The more experience I get the more I will do but for now I'm open to look closer to me and also taking trips to other markets. I know the right deal will come to me eventually. Thank you John appreciate your feedback.
Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes
7y
@Jose Gonzalez good to take trips see other places.
I learned one thing about looking at markets. The grass is always greener. So investigate as much as you can but once you commit to a market stay that way. And it of course a lot easier to leverage your strengths and time close to home.
@John Hickey I am planning on taking my first trip up there next week. I will stay in the area for two days to check out as much as I can. I will be meeting with a local agent and also an investor. Starting off I don't wanna rush so i am taking my time.
The more experience I get the more I will do but for now I'm open to look closer to me and also taking trips to other markets. I know the right deal will come to me eventually. Thank you John appreciate your feedback.
Out of curiosity why Utica? sorry if you explained it already.
Seems like it's far away enough that you're going to need a team, manager, etc and not practical to be there often. Not close enough to go there to change a lock or paint a room. Could have many options at that point, almost anywhere in the country... unless you have a connection there already and know the market a bit?
#1 - Make sure you find an agent who understands investments
#2 - Research the market. Know where the good neighborhoods with strong rental demand are. The agent and property manager should be able to help you with this.
#3 - Make sure you cashflow and set aside proper reserves
#4 - Make sure you get a good appraiser and inspector
#5 - Research and get referrals for property managers
You should be fine if you are doing the 5 steps above. Obviously there is more nuances to consider, but if you slack off in any of those steps you are taking on some serious risk. You're never going to be 100% confident walking into your 1st deal. Like everyone is saying, you have to take the leap. Don't be like thousands of others who "wait" for the perfect one and never take the jump.