New Member from Huntington Beach, CA

[Carlos O.]

Hello everyone,

After a couple of weeks of listening to the amazing podcasts they have here at BP, I've finally decided to join. I'm just starting out in my RE journey, mostly been absorbing as much knowledge as I can get my brain on. I'm currently looking at out of state rental property near Tulsa Oklahoma, running numbers here and there to try to get a good understanding of how the numbers work. Round Rock TX is next in the number crunching.

I would like to be able to generate $4-$5K in passive monthly income within the next 5 years so I can quit my job and start working on other projects; I've always wanted to have an IT business.

I am interested in BP meetups, so if anyone is planning one, let me know.

Thank you,

Carlos O.

[Ali Boone]

Oh, interesting. Yeah those are good stats, but hard to start with because there will be a gazillion markets that fit those bills but don't make sense to invest in. Like an "A" grade neighborhood with big expensive houses will probably have the lowest crime rate and unemployment, but the housing costs will never make sense from a cash flow perspective, or that of securing renting tenants (since those are oftentimes primarily homeowners and not renters). Price-to-rent ratio is the # thing to look at, then population/jobs/industry, then safety, etc. Those first two things being the biggest, then you can hone in more specifically based on crime and all that.

I've only dealt with turnkeys, which means the markets I work with are markets with a lot of inventory available....versus other markets that may be great for investing but don't have a huge amount of inventory. The latter is great and don't rule those out, I just don't work with them personally to speak to them. For the bigger markets, my favorite right now is Philly, then Houston and Dallas, Trenton NJ. Those are my faves. Chicago, Indy...those are some other good ones I support.