New investor looking to learn and network
New to Real Estate · Rockford, IL · Member since 2026 · 6 posts · 13 votes
New investor looking to learn and network
Most Popular Reply
Memphis, TN · Member since 2024 · 180 posts · 223 votes
8moWelcome to BP! You're in the right place. Definitely check on some of the podcasts while you are here! I'm an investor agent in Memphis and we work with a lot of remote investors like yourself looking to build cash flow and appreciation in a market where the barrier to entry isn't high, rent to price ratios are strong, and where there are landlord-friendly laws. Happy to connect on what we are seeing in Memphis, and if you do decide to invest in other markets, make sure to build your team! ( Realtor, Contractor, Property Management!! ) A good investor-focused realtor will have good recommendations for each of these aspects of your business- I know we do!
Best of luck!
16 Replies
- 8moMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
Glad to hear you have determined your goals and are approaching real estate investing with a thoughtful strategy. It's great that you're focusing on fundamentals and looking to create a balanced portfolio. The emphasis on learning the operational side of investing early on will certainly serve you well in the long run.
As you begin your journey, remember that networking with experienced investors and leveraging the wealth of knowledge within the BP community can be invaluable. Don't hesitate to ask questions, share your experiences, and seek advice on specific challenges you encounter.
Additionally, consider exploring various educational resources such as books, podcasts, and online courses that focus on real estate investing. Staying informed about market trends and regulatory changes can also help you make sound investment decisions.
Wishing you success as you embark on this exciting endeavor. Welcome to the community, Armando!
- 8moWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Welcome! It seems that you are already beginning with the absolutely correct mindset. The approach of focusing on numbers first and operations in the solid working class neighborhoods is how the majority of long term investors win, not the flashy stuff that is usually done online. Be patient, underwrite deals regularly and do not be afraid to ask questions; this community is perfect for refining those basics.
Good luck!
NETWORTH BUILDERS5236 Reviews - Property Manager · OK · Member since 2024 · 98 posts · 74 votes8mo
Welcome to BiggerPockets, Armando, and solid mindset starting.
Focusing on fundamentals, numbers, and operations early will put you ahead of a lot of new investors. Single-family and small multifamily in stable neighborhoods is a proven path, especially when you’re thinking long term instead of chasing quick wins.
If there’s one piece of advice, it’s to stay patient and keep learning from real deals, not just theory. Spend time understanding local rents, expenses, and management realities; those lessons compound fast.
Glad to have you here. Looking forward to seeing your progress and contributions along the way.
- 8moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Armando Marrufo:
Hi everyone — I’m Armando. Happy to officially join the BiggerPockets community.
I’m new to real estate investing and currently focused on learning the fundamentals the right way. My goal is to build a long-term portfolio that balances reliable cash flow with steady appreciation, starting with single-family homes and small multifamily properties in stable, working-class neighborhoods.
I’m taking a disciplined, numbers-first approach and focusing on learning the operational side of investing early — from deal analysis to management decisions — so I can scale responsibly over time. Not chasing speculation, just solid assets that make sense on paper and hold up in the real world.
Looking forward to learning from others here, exchanging ideas, and contributing as I continue to grow.
Happy to be part of the community.
Congrats on getting started. Most people get scared and don't know where to start. It's as simple as going on biggerpockets and find an investor agent in your selected market.
Identify what you want to do (buy a househack, sfh brrrr valueadd or flip, or buy larger mf) and get pre-approved. Start chatting with PM and contractors.
When realtor sends deal, look at comps and what you are buying for. Get inspection done and make sure roof, hvac, hot water, electric, and foundation are good.
Good luck brother!
ReafCo | Ahmed Group 530 Reviews - Memphis, TN · Member since 2024 · 180 posts · 223 votes8mo
Welcome to BP! You're in the right place. Definitely check on some of the podcasts while you are here! I'm an investor agent in Memphis and we work with a lot of remote investors like yourself looking to build cash flow and appreciation in a market where the barrier to entry isn't high, rent to price ratios are strong, and where there are landlord-friendly laws. Happy to connect on what we are seeing in Memphis, and if you do decide to invest in other markets, make sure to build your team! ( Realtor, Contractor, Property Management!! ) A good investor-focused realtor will have good recommendations for each of these aspects of your business- I know we do!
Best of luck!
- Member since 2025 · 1 post · 1 vote8mo
Thank you everyone for the advice and saying hello. I have been reading as much as I can (I've read 4 books so far) and the bigger pockets podcast is always playing through my speakers. Right now, the main issue I'm having is having any properties on the MLS pass through my screening. Any advice on finding properties?
- 8moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Armando Marrufo:
Hi everyone — I’m Armando. Happy to officially join the BiggerPockets community.
I’m new to real estate investing and currently focused on learning the fundamentals the right way. My goal is to build a long-term portfolio that balances reliable cash flow with steady appreciation, starting with single-family homes and small multifamily properties in stable, working-class neighborhoods.
I’m taking a disciplined, numbers-first approach and focusing on learning the operational side of investing early — from deal analysis to management decisions — so I can scale responsibly over time. Not chasing speculation, just solid assets that make sense on paper and hold up in the real world.
Looking forward to learning from others here, exchanging ideas, and contributing as I continue to grow.
Happy to be part of the community.
You’re ALWAYS better off investing locally, where it’s easier to:
- Learn the market
- Network to find deals
- Network to find contractors
- Be more hands-on
- Driveby property to keep tabs on it
- Network to find a decent Property Management Company (PMC)
If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully outsourcing all of the above.
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
- Many of them don't know/care what Class the properties are, so they're incompetent.
- Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!
Here's some copy & paste advice you might find useful:
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
We can also share numerous examples of properties & portfolios we’ve assisted investors with!
DM us if you’d like to discuss this logical approach in greater detail!
Horror Stories from those that did NOT Understand What they were Buying:
https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain
https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss
https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs
https://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-years
Logical Property Management4.9458 Reviews - 8moClare PitcherBusiness MemberProperty Manager · Milwaukee, WI · Member since 2024 · 162 posts · 97 votes
Welcome to BP! These are great goals and sounds like you have a great invesment mindset. I see you are from Illinois. We get a lot of IL investors here in Milwaukee because the house prices are a little more affordable. I would sugguest keeping your mind open to the Milwaukee market! Please reach out if you have any specific questions!
Welcome Home Milwaukee4.4453 Reviews- New to Real Estate · Rockford, IL · Member since 2026 · 6 posts · 13 votes8mo
Quote from @Clare Pitcher:
Welcome to BP! These are great goals and sounds like you have a great invesment mindset. I see you are from Illinois. We get a lot of IL investors here in Milwaukee because the house prices are a little more affordable. I would sugguest keeping your mind open to the Milwaukee market! Please reach out if you have any specific questions!
Thanks for the feedback. I'm not opposed to the Milwaukee market, I currently live in Wisconsin (near the Dells). My only concern would be a lack of knowledge of that market/neighborhoods.
- 8moClare PitcherBusiness MemberProperty Manager · Milwaukee, WI · Member since 2024 · 162 posts · 97 votes
Quote from @Armando Marrufo:
Hey fellow Wisconsinite! Let me know if you want to hop on a call, we can walk through the map to give more detail on specific neighborhoods.Quote from @Clare Pitcher:
Welcome to BP! These are great goals and sounds like you have a great invesment mindset. I see you are from Illinois. We get a lot of IL investors here in Milwaukee because the house prices are a little more affordable. I would sugguest keeping your mind open to the Milwaukee market! Please reach out if you have any specific questions!
Thanks for the feedback. I'm not opposed to the Milwaukee market, I currently live in Wisconsin (near the Dells). My only concern would be a lack of knowledge of that market/neighborhoods.
Welcome Home Milwaukee4.4453 Reviews
- 8moClare PitcherBusiness MemberProperty Manager · Milwaukee, WI · Member since 2024 · 162 posts · 97 votes
Oh awesome, a fellow Wisconsinite! Let me know if you'd like to hop on a call and we can walk through the map/specific neighborhoods!
Welcome Home Milwaukee4.4453 Reviews- New to Real Estate · Rockford, IL · Member since 2026 · 6 posts · 13 votes8moThanks, I’d be open to that. I’m not looking for turnkey or anything immediate — I’m trying to understand Milwaukee at a neighborhood level first so I don’t force a bad deal. If you’re open to it, I’d love to discuss : neighborhoods you personally like for small multifamily • areas you actively avoid • common issues you see new out-of-state investors underestimate That would be really helpful.
Quote from @Clare Pitcher:
Oh awesome, a fellow Wisconsinite! Let me know if you'd like to hop on a call and we can walk through the map/specific neighborhoods!
- 8moSean GrahamBusiness MemberInvestor , CPA · Detroit, MI · Member since 2016 · 583 posts · 248 votes
Welcome to BP! @Armando Marrufo. Cash flow, steady appreciation, and operational focus are a strong foundation. You’re approaching this with the right mindset from the start.
Maven Cost Segregation Tax Advisors554 Reviews - 8moMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
@Armando Marrufo Welcome and congrats on starting your new journey!
- Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 431 votes8mo
@Armando Marrufo Welcome to BP! Congratulations on your journey! I don't want to overwhelm you, but I can give you the lowdown on some markets outside of Milwaukee. In the Waukesha, Jefferson, Racine, Rock, and Kenosha Counties. There are a few opportunity markets for you to consider, all with different advantages. I'll shoot you a DM, so we can connect.
- 8moAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
Hi Armando, welcome to BP! That sounds like a great plan to start with.
From a tax perspective, as you begin investing, just remember that many of the core costs of owning rentals are deductible. Things like mortgage interest, property taxes, insurance, repairs and maintenance, management fees, utilities (if you cover them), and even depreciation can all reduce your taxable rental income. The key early on is good documentation, keeping clean records from day one makes a big difference.
As you grow, you may also want to look at how your rental properties could eventually interact with your broader financial picture, especially if you have other income outside of real estate. When structured properly, rentals can become a powerful part of an overall tax and wealth strategy, not just a cash-flow play. One thing you'll definitely want to understand is how passive versus non-passive income works. Most people come into real estate thinking purely about “passive” cash flow, but a lot of high W-2 earners and even business owners use real estate more strategically. In the right situations, properties can generate losses on paper that help offset income elsewhere, which can free up cash and make it easier to grow faster.
As you get started, one of the best things you can do is build a small team you trust around you, a lender, a real estate agent who knows the areas you’re interested in, and eventually a CPA who specializes in real estate. Having the right people in place early helps make sure you’re taking advantage of the opportunities available and that you’re structured correctly from the start.
Good luck and happy to connect!
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