New Member Introductions
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Starting my RE journey (again)
Hello everyone. My name is Eldon Bailey. I'm actually a returning member. I would like to tell you about myself.
I am retired from the U.S. Air Force (active duty) but currently work the DoD, as a civilian. My wife and I have five children who are now adults and living on their own.
I am 52 years old and will be able to retire from my current job in 8 -10 years. Because of the retirement structure, sticking around for that is not vitally important to me as I will basically be funding my own retirement with my Thrift Savings Plan (TSP).
My wife and I are in a GREAT financial position (zero debt, cash on-hand, disposable income) and are excited to start building passive income for us and generational wealth for our family. Most of all, not needing to wait 8 - 10 more years to quit my job.
My initial goal was to purchase at least two properties by the end of the year, but the housing market we live in is extremely over-inflated and seems very difficult and risky to invest in right now. I have no idea where to start with long distance investing, so for now, I'm just trying to learn everything I can about "buy and hold", "BRRRR", private and hard money, and analyzing properties. Unfortunately, I don't work with or know anyone who invests in real estate (at least not anyone whom I would consider an expert or mentor).
I love to learn, so I will continue absorbing everything I can on biggerpockets and hopefully find other helpful resources/people along the way. I am grateful for any advice or "words of wisdom" shared by others. I look forward to networking with as many of you as possible.
You came to the right place to learn more about real estate, Eldon!
Welcome aboard and best of luck investing!
- (561) 253-6640
- http://www.Engineeredtaxservices.com
Welcome! My advice is to start networking with local investors in your area in addition to education. It looks like you're already in a great position already to get started. Now, you just need to surround yourself with people who are doing what you want to do. Best of luck!
@Eldon S. Bailey Kick @ss beard my man. Welcome back! You are doing the right thing being here and reaching out. It seems like you are in a great life spot.
I would read read read. But, reading takes time and is a place filler and I "read read read" for three years... and tricked myself into thinking I was being productive and never took action. So it is a fine line.
Feel free to call or text me anytime. Would love to hear your story.
Almost all markets feel very inflated right now. But that is shifting right before our eyes, and opportunities are starting to present themselves.
In my market, as an example, total active inventory has gone from around 4,000 properties to around 17,000 properties just in the past couple of months (numbers vary a bit depending on the source, but you get the point).
Higher inventory means a more balanced market, and it means sellers aren't achieving those inflated prices anymore.
I'd imagine similar shifts are happening in your market. Pay close attention to these details and be ready to grab a deal when it presents itself. Buying 2 deals between now and year-end is definitely doable.
P.S. thank you for your service.
First of all, THANK YOU for your service! Depending on your risk tolerance, I would also look into syndications. Cardone Capital, Ashcroft and so on offer a place to park your investment $$$ with lower risk. Look for ones that have a strong track record and solid returns. Not all offer the same deals. I would also look into the option of converting your TSP into a Roth IRA and self directed. The power of those options are fantastic. Many syndications will allow you to roll your IRA or 401k into their portfolio through a 3rd party like Equity Trust.
If you are more hands on, look at joining your local NREIA or investors group. These groups are filled with like minded people and you can really get a lot of great information from them.
The most important thing to remember regardless of where you are investing is that if its easy to buy, its hard to sell so look for location along with ROI not just ROI and that the more doors you buy in the same location, the lower your costs per unit, the easier to manage. For instance if you have 40 units and 6 units are vacant, 85% are still paying and you can still cover all your expenses whereas if you have a SFR and its empty that's 100% vacant. IMHO multi family is the way to go. Probably the biggest problem with RE investors (me included) is small thinking. Its easier to get debt for a larger MF deal than SFR's because its based on income (NOI) not on the real estate or your FICO and if its a large enough purchase, non recourse loans are the norm. You do not have to do it alone either. IF the deal is solid the money is easy to raise. Learn to underwrite MF deals, walk a bunch of properties, talk to (or take to lunch) as many MF brokers that will take your calls and get a feel for the area your are looking at.
There are exceptions to every rule but these are pretty solid.
@Eldon S. Bailey first that you for your service! I am a Navy veteran and have since used my VA loan on 2 duplexes in Columbus OH.
If you are in a market that is inflated and you can no longer cash flow you may want to look out of state. I will say if you do a BRRR that might be better to stay closer to home though. I've done about 6 BRRRs now and with the amount of tedious things a major rehab takes it's better to be on sight. Light rehabs I think is still good to go out of state though
Quote from @Eldon S. Bailey:
Hello everyone. My name is Eldon Bailey. I'm actually a returning member. I would like to tell you about myself.
I am retired from the U.S. Air Force (active duty) but currently work the DoD, as a civilian. My wife and I have five children who are now adults and living on their own.
I am 52 years old and will be able to retire from my current job in 8 -10 years. Because of the retirement structure, sticking around for that is not vitally important to me as I will basically be funding my own retirement with my Thrift Savings Plan (TSP).
My wife and I are in a GREAT financial position (zero debt, cash on-hand, disposable income) and are excited to start building passive income for us and generational wealth for our family. Most of all, not needing to wait 8 - 10 more years to quit my job.
My initial goal was to purchase at least two properties by the end of the year, but the housing market we live in is extremely over-inflated and seems very difficult and risky to invest in right now. I have no idea where to start with long distance investing, so for now, I'm just trying to learn everything I can about "buy and hold", "BRRRR", private and hard money, and analyzing properties. Unfortunately, I don't work with or know anyone who invests in real estate (at least not anyone whom I would consider an expert or mentor).
I love to learn, so I will continue absorbing everything I can on biggerpockets and hopefully find other helpful resources/people along the way. I am grateful for any advice or "words of wisdom" shared by others. I look forward to networking with as many of you as possible.
Welcome back Eldon,
That is great that you are getting started and seem to be ready to jump in. If your market is not one in which you want or can invest in then read this article on creating your core 4 https://www.biggerpockets.com/.... For out of state investors it is important to get this started. If you want to grow and keep growing which is what it sounds like you want to do. By creating this you would be able to scale much faster. I think it is important to start running numbers in the potential market you want to invest in. I like to use this calculator https://www.calculator.net/ren.... By doing this you will know when a good deal is in front of you and you will be able to act fast. Like in the BP podcast #635 one thing it talks about is getting over the initial fear and acting fast.
Personally I recommend the major cities in Ohio:
-Columbus, great for appreciation, pp is a bit higher around $220k for multifamily
-Cincinnati, has a mix of cash flow and appreciation, average multifamily around $180k
-Cleveland, has alot of cashflow potential, average multiform around $140k
There are other smaller markets like Dayton, Akron, and and Newark, which we are starting to see these areas boom due to huge investors and corporations like Intel choosing to set up shop in these kind of areas.
Looking for cashflow? Look into Cleveland, its got good cashflow potential with appreciation happening as well.
Looking for appreciation come to Columbus, there are still 1% deals, but the more attractive part is the population growth and other economic drivers!
Welcome to BP and thank you for your service! I hope you do well with your journey in REI and I think you will with how good you seem to be with finances. If you're ever interested in Cleveland's market, feel free to reach out.
Welcome to BP Eldon! Your service is greatly appreciated. I wish you luck on your real estate investments!
Hi Eldon,
Very nice to meet you! I'm glad you've returned and giving the investing game a second chance. Navigating this world alone can be very challenging and scary. If you'd like, I can introduce you to my partners and hook you up with all the resources we have at our disposal. We are currently doing fix & flips, wholesales, and rental properties here in Utah. Feel free to reach out to me whenever you can!
#1 Out of State Investing Contributor
- Real Estate Broker
- Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
- 18,494
- Votes |
- 27,268
- Posts
#1 Out of State Investing Contributor
- Real Estate Broker
- Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Quote from @Eldon S. Bailey:
Hello everyone. My name is Eldon Bailey. I'm actually a returning member. I would like to tell you about myself.
I am retired from the U.S. Air Force (active duty) but currently work the DoD, as a civilian. My wife and I have five children who are now adults and living on their own.
I am 52 years old and will be able to retire from my current job in 8 -10 years. Because of the retirement structure, sticking around for that is not vitally important to me as I will basically be funding my own retirement with my Thrift Savings Plan (TSP).
My wife and I are in a GREAT financial position (zero debt, cash on-hand, disposable income) and are excited to start building passive income for us and generational wealth for our family. Most of all, not needing to wait 8 - 10 more years to quit my job.
My initial goal was to purchase at least two properties by the end of the year, but the housing market we live in is extremely over-inflated and seems very difficult and risky to invest in right now. I have no idea where to start with long distance investing, so for now, I'm just trying to learn everything I can about "buy and hold", "BRRRR", private and hard money, and analyzing properties. Unfortunately, I don't work with or know anyone who invests in real estate (at least not anyone whom I would consider an expert or mentor).
I love to learn, so I will continue absorbing everything I can on biggerpockets and hopefully find other helpful resources/people along the way. I am grateful for any advice or "words of wisdom" shared by others. I look forward to networking with as many of you as possible.
Welcome aboard Eldon.
Welcome back to Real Estate. Good luck on your journey.