New, serious, self-educating & want 3-4 rentals buy end of 2023.

[Nate Saenz]

Hello, my name is Nate -

I'm a motion designer and video producer based in Austin, Texas, but I'm about to move to Colorado.  I have a great career in tech (which is completely remote) and recently have had a serious interest in real estate investing. At the moment, I'm reading a lot of books and listening to podcasts to educate myself. I am fortunate to have some money to begin with, excellent credit, and a well-paying remote job. My goal is to have at least three to four buy-and-hold rentals producing cash flow by the end of 2023. It's also important to note that my wife is on board. I'm diving in and hopefully will be looking for my first deal soon.

It's great to meet everyone and discover this community.

[David Chappell]

Hey Nate! Im in Austin as well, but investing in Birmingham, AL and plan to move into MFH next year. What market are you looking at for SFR?

[Julio Gonzalez]

Welcome to BiggerPockets, Nate! 

[Theresa Harris]

Welcome.  If you have never had a rental property, I'd suggest you start out with one.  Buy the others in 2024 or over the next few years.  You learn a lot from the first one.  Do you have the money to buy all of those properties (down payment, room to borrow the other 80%)?

[Jeremy H.]

Good deal!

One of the things you'll find out is that your capital will run out quick (especially if you do any other investing on the side 401k, IRA, HSA, 529 etc) - doesn't matter how much you make.

You figure 4 places at 150k a piece is 120k is just downpayments going the conventional route - add in closing costs, misc expenses, small repairs etc and you're up there pretty quick (and those are cheap places). 

SFH are also going to be hard to cashflow without a significant rehab - this is where you make your money - buying a place that needs a rehab and completing it for 80% or so of the ARV. I used my own money to fund my rehabs, but again, you'll find your capital tied up until you can refi (which is somewhat risky right now, so it's important to get the rehab done fast) or use a HML

Good luck, it is a fun hustle!

[Eliott Elias]

What your question? Invest in Austin, this is the mecca of appreciation. Now is a good time to find something under market value and leverage your cash. You will have good quality tenants and will be in a market that has long term potential 

[Simon Ashbaugh]

Quote from @Nate Saenz:

Hello, my name is Nate -

I'm a motion designer and video producer based in Austin, Texas, but I'm about to move to Colorado.  I have a great career in tech (which is completely remote) and recently have had a serious interest in real estate investing. At the moment, I'm reading a lot of books and listening to podcasts to educate myself. I am fortunate to have some money to begin with, excellent credit, and a well-paying remote job. My goal is to have at least three to four buy-and-hold rentals producing cash flow by the end of 2023. It's also important to note that my wife is on board. I'm diving in and hopefully will be looking for my first deal soon.

It's great to meet everyone and discover this community.

Checkout Ohio! Columbus is the fastest growing metropolitan area in the midwest with decent cashflow, and appreciation 8% higher than the national average. Cleveland is incredible for cash flow, with around 60% of households occupied by renters. Happy to chat more in-depth on these markets if you shoot me a DM!

[Sam McCormack]

@Nate Saenz

Hi Nate, nice to see you on here and welcome! I am an agent in Cincinnati, if you are ever interested let me know and I will do my best to find you the best investment I can! I have a few questions for you about what you are looking for and etc. I sent you a message, let me know if you are interested in Cincinnati and I will be here for it!

[Robin Simon]

Quote from @Nate Saenz:

Hello, my name is Nate -

I'm a motion designer and video producer based in Austin, Texas, but I'm about to move to Colorado.  I have a great career in tech (which is completely remote) and recently have had a serious interest in real estate investing. At the moment, I'm reading a lot of books and listening to podcasts to educate myself. I am fortunate to have some money to begin with, excellent credit, and a well-paying remote job. My goal is to have at least three to four buy-and-hold rentals producing cash flow by the end of 2023. It's also important to note that my wife is on board. I'm diving in and hopefully will be looking for my first deal soon.

It's great to meet everyone and discover this community.

 Welcome!  You've come to the right place to hit those goals in '23!

[Aj Parikh]

Hi Nate, One of the easiest ways of scaling in real estate today is to invest in turnkey properties out of state. If you have a busy 9-5 routine but have the money to get started and don't have enough time, turnkey companies provide some of the best resources to scale your portfolio. I have used that strategy so feel free to reach out if you want to discuss.

[Eric Prescott]

How does your wife feel about house hacking? You could get 3 doors at once and a place to live for free with a quad MFH. 

[Patrick Drury]

@Nate Saenz
If you can work remotely you should consider Columbus OH. The cost of living will be cheaper, which will help you save more money and build your portfolio faster. From an investing standpoint, the city is a hybrid market of cash flow and appreciation. There are lots of job opportunities and population growth in Columbus OH. 

[Nate Saenz]

Nice to meet you.  Will look into Ohio.  Would like to find my first deal in Colorado area, but I’m open to out of state.

[Nate Saenz]

Thanks Sam, 

Nice to meet ya.  I’ll reply to your DM.

[Nate Saenz]

Thanks Patrick.  I’f you have a property you would like me to analyze let me know.  I’m open to the area. 

[Nate Saenz]

Quote from @David Chappell:

Hey Nate! Im in Austin as well, but investing in Birmingham, AL and plan to move into MFH next year. What market are you looking at for SFR?

Thanks for the post David, I'm not analyzing deals yet I've looked at a few, and I'm reading a lot of books currently before I jump into the market.  I will be in the Colorado area in the new year, so it would be great if I found a great deal there. 

[Nate Saenz]

Quote from @Theresa Harris:

Welcome.  If you have never had a rental property, I'd suggest you start out with one.  Buy the others in 2024 or over the next few years.  You learn a lot from the first one.  Do you have the money to buy all of those properties (down payment, room to borrow the other 80%)?

Thank you for the post, Theresa. Excellent advice.
I'm reading and considering various strategies, but the BRRR method has my interest.
Begin with one cash offer + one cash rehab. So, after refinancing, it may take some time to use my capital for the next rental.
Looking into different strategies, but BRRR sounds promising so far. I'm on my fifth book in two weeks. Please let me know if you have any book recommendations.
Thanks.

[Nate Saenz]

Quote from @Jeremy H.:

Good deal!

One of the things you'll find out is that your capital will run out quick (especially if you do any other investing on the side 401k, IRA, HSA, 529 etc) - doesn't matter how much you make.

You figure 4 places at 150k a piece is 120k is just downpayments going the conventional route - add in closing costs, misc expenses, small repairs etc and you're up there pretty quick (and those are cheap places). 

SFH are also going to be hard to cashflow without a significant rehab - this is where you make your money - buying a place that needs a rehab and completing it for 80% or so of the ARV. I used my own money to fund my rehabs, but again, you'll find your capital tied up until you can refi (which is somewhat risky right now, so it's important to get the rehab done fast) or use a HML

Good luck, it is a fun hustle!

Thanks for the post, Jeremy.  All valid points!  Everything you said is spot on  Refinancing right now does seem risky and harder to get the best Cashflow.  Have you done any refinances lately or paused because of these rates?  

[Nate Saenz]

Quote from @Eliott Elias:

What your question? Invest in Austin, this is the mecca of appreciation. Now is a good time to find something under market value and leverage your cash. You will have good quality tenants and will be in a market that has long term potential 

Thanks for the post Elliot. I'd love to invest in Austin, but not sure it's the best move for me right now. But yeah, Austin is a great market. I've bought and sold twice here and was a renter for a long time also. Thanks for reaching out. Always open to looking at problem properties you may have. I have a home for sale in Austin also. I'll DM you.

[Nate Saenz]

Quote from @Eric Prescott:

How does your wife feel about house hacking? You could get 3 doors at once and a place to live for free with a quad MFH. 

Thanks for the post eric.  We have three kids, so that wont fly.  

[V.G Jason]

Quote from @Patrick Drury:

@Nate Saenz
If you can work remotely you should consider Columbus OH. The cost of living will be cheaper, which will help you save more money and build your portfolio faster. From an investing standpoint, the city is a hybrid market of cash flow and appreciation. There are lots of job opportunities and population growth in Columbus OH. 

No offense going from Austin to Columbus would be awful. If you're doing it strictly to house hack, sure whatever do it for a year I guess. But don't think the wife would be happy, nor you. Regardless, Ohio is an intriguing place to invest for sure.

What's your target price range for each of these houses, are you looking for cash flow & appreciation, one of the two? How much liquid capital do you have? Are you planning to self manage or property manage? Are you taking personal loans or going the LLC route?

[Eric Prescott]

Quote from @Nate Saenz:

Quote from @Eric Prescott:

How does your wife feel about house hacking? You could get 3 doors at once and a place to live for free with a quad MFH. 

Thanks for the post eric.  We have three kids, so that wont fly.  

Yeah, I feel that.  

[Brian Bohrer]

Welcome to your new Investment Family @Nate Saenz!

You are definitely on the right track for beautiful views and appreciating real estate if you are planning to head to Colorado!  I moved to the Colorado Springs area back in May and have had the pleasure of taking in majestic views of Pike's Peak everyday through my office window, truly one of the most beautiful cities I have ever visited.  

I am not sure if you said that you were planning on house hacking the first property you bought, but that is what I would suggest you do as your first purchase out here!  There is no better way to make sure your investment succeeds than to buy a home for 5% down and then rent out the un-used portions to pay your mortgage!  We are following this plan with our current residence and plan to buy another every year for the next 5 years or so to grow our portfolio on the front range of the Rocky Mountains.  

Keep in touch if you decide that Colorado Springs is a good fit for you as I would love to show you some great opportunities to grow your wealth while enjoying 300 days of sunshine! 

Take Care Nate and good luck on your investment journey!

[Jordan Moorhead]

@Nate Saenz househack in Austin and invest where the numbers make most sense. Don't move to househack, you can househack here. I've done it 3 times.

[Bob Stevens]

Hi, all good however is there a question?

[Tanner Pile]

Hey Nate! @Nate Saenz

Will you be moving to the Canon City area? This area is very close to Salida and Buena Vista, awesome vacation spots for outdoors activities like hiking, camping and skiing. To get cash flow in Colorado short term rentals are the way to go and this area is more affordable compared to summit county with the likes of Vail, Aspen, and Breckenridge. 

Keep on reading and listening to podcasts for education! If you ever look to meet up with other real estate investors I host a Real estate investor meet up in Colorado Springs if you can make it!