All cash investor from Bulgaria

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All cash investor from Bulgaria

Kristian Vassilev
Investor · Sofia, Sofia-city · Member since 2015 · 5 posts · 0 votes

Hello everyone, 

I am a young soon to move the the US investor, who seeks opportunities on the real estate market, mainly buy and hold strategies. I do have experience in real estate, investing (both BSc and MSc, plus real experience) and currently in the IT business as a day-to-day job, as is the highest paying industry in the current market) Looking for open-minded and helpful people with whom to get in touch and exchange ideas, contacts and eventually do business together. As I will be new on the market (even tho I have read and search for most of the things which impact the investment decision) I do lack the experience on the US market. I do plan starting out with my own capital, so I can start the things up, before I build enough credit history to benefit from the leverage where the foundations and numbers check out.

MODERATOR:  NO OFFERS OR PROPERTIES OR SERVICES IN THIS FORUM, PLEASE.

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Samuel Sedore
Real Estate Agent · Kitchener-Waterloo-Cambridge, Ontario · Member since 2013 · 408 posts · 90 votes
10y

Have you considered Canada at all? We don't have the same rental cash flow but our appreciation and public demographics trump most states. With a large middle class and fairly high paid labourers and tradesmen its easier to find good tenants. I know my market had 6.6% YOY appreciation last year, not sure how the most states compare.

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  • Michael S.Pro Member
    Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
    10y

    @Kristian Vassilev

    Welcome to Biggerpockets. Great to have you here

    BiggerPockets
    0Reply
  • Karen Barber
    Lender · Kansas City, MO · Member since 2015 · 103 posts · 28 votes
    10y
    Welcome to Bigger Pockets. Do you have s market city which you would like to invest in?
    0Reply
  • Kristian Vassilev
    OP
    Investor · Sofia, Sofia-city · Member since 2015 · 5 posts · 0 votes
    10y

    Thank you for the warm welcome,

    Karen, I think it will be interesting discussion on the city and area.

    The area I am interested in is New York state - Buffalo - Niagara Falls and anything in proximity which can be a good deal. From what I have checked so far, the housing value relation to the rents is at the high end nation wide. What I am concerned is at the demographic picture of the area as it is decreasing (around -1), which could be a sign of property value decrease, as well as that from what I have read, Buffalo is seen as not very friendly town overall. 

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  • Diamonte Zarba
    Real Estate Agent · Oneonta, NY · Member since 2015 · 10 posts · 0 votes
    10y
    Hello Kristian Vassilev, I work in real estate in the Central New York region, A bit different of a market but just as lucrative in my opinion. Happy house hunting!
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  • Steven Kopstein
    New York City, NY · Member since 2015 · 95 posts · 39 votes
    10y

    @Kristian Don't forget NYC.  It's expensive but can work well as Buy/Hold  - especially multi-family as the rents are always on the rise.  Let me know if you have any interest.  I'm a native NY-er and know the areas really well - there are some fringe areas that are not crazy expensive.  As a side note - I've been to Sofia.  :)  Had a great time.  

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  • Steven Kopstein
    New York City, NY · Member since 2015 · 95 posts · 39 votes
    10y

    @Kristian VassilevPS - once you decide on a city/metro area, create a keyword alert for that area and you can also look for local meetups and other groups that meet here on BP.  Become a Pro - worth it for all the extra resources.

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  • Samuel Sedore
    Real Estate Agent · Kitchener-Waterloo-Cambridge, Ontario · Member since 2013 · 408 posts · 90 votes
    10y

    Have you considered Canada at all? We don't have the same rental cash flow but our appreciation and public demographics trump most states. With a large middle class and fairly high paid labourers and tradesmen its easier to find good tenants. I know my market had 6.6% YOY appreciation last year, not sure how the most states compare.

    1Reply
  • Kristian Vassilev
    OP
    Investor · Sofia, Sofia-city · Member since 2015 · 5 posts · 0 votes
    10y

    Thank you all for the quick responses :)

    I know it is asking a lot and there is no specific answer, but can you tell me on average what can an investor expect in Central New York region (Diamonte) and New York City (Steven) in terms of starting property prices, speaking in terms of both all cash and with standard 20 to 25% down payment. Also after all expenses, taxes, fees, etc. are taken into account what is the ROI monthly for both all cash and with the mentioned down payments.

    As for Canada, I am currently seeking high ROI after tax and expenses and not so much on the appreciation side, but I am still open for ideas if the numbers check out.

    Thank you very much to all of you :)

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  • Kristian Vassilev
    OP
    Investor · Sofia, Sofia-city · Member since 2015 · 5 posts · 0 votes
    10y

    PS: By ROI, I mean positive cash flow from rents for the year after tax and expenses on the amount invested. For example - investment of 100 000 (including repairs, transaction fees etc), monthly rent of 1500, monthly expenses 1000 (including tax, insurance, management fee (10%), mortgage (without if all cash ofc), vacancy, repairs and others), so total of 500 left. then 1500 x 12 = 6000. ROI 6000/100 000 = 0.06 or 6% annual return.

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  • Diamonte Zarba
    Real Estate Agent · Oneonta, NY · Member since 2015 · 10 posts · 0 votes
    10y
    Hello Kristian Vassilev, In my area specifically investors are seeing 15-20% cash on cash return and anywhere from 12-18% ROI.
    0Reply
  • Linval T.
    Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
    10y

    @Kristian Vassilev

    Welcome aboard the vibrant BP community. You already have some experience and with additional effort, will quickly climb the REI ladder to its pinnacle.

    To be more successful, you simply have to work on the other elements to progress your REI pursuit. Below are some quick links to get engaged on this site.

    REI books suggested by BPers

    http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?utm_source=search&utm_medium=internal&utm_campaign=books

    Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.

    Feast on the Podcasts, #askbp Podcasts, blogs and webinars

    Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

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  • Gabe Lopez
    Real Estate Agent · Lansing, MI - Michigan · Member since 2015 · 21 posts · 8 votes
    10y

    Hi @Kristian Vassilev & welcome.

    There are plenty of people on the here that can help you navigate and learn how the US real estate market works. I see in your profile you are curious about ROI's in different areas.

    In my area (Lansing, Michigan) ROI's are in the neighborhood of 11.9% to 14.6% looking at 7 properties currently on the market.  
    CCR for those same properties (assuming 6% interest, 25% down, 20 year term and paying cash for the initial rehab costs) is 15.2% to 24.0%.


    That's taking into account management fees, vacancy rates, cap ex, maintenance, taxes, insurance and closing costs.

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  • Samuel Sedore
    Real Estate Agent · Kitchener-Waterloo-Cambridge, Ontario · Member since 2013 · 408 posts · 90 votes
    10y

    Appreciation still counts as ROI. I get about 20-30% per year easy overall ROI after appreciation, pay down and cash flow plus a free place to live. Our Cash on cash returns aren't great until year 2-3 though, but our market is historically one of the most stable and rents consistantly rise. Tenant quality is good here, and my region is the fastest growing in Ontario Cambridge did about 5.8% medium appreciation and Kitchener 6.6%. What I love is that when you control an asset with 20% equity, you still get appreciation on the whole asset. So you get to multiply your returns by about 5.

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  • David H.
    Ransomville, NY · Member since 2015 · 10 posts · 0 votes
    10y

    Hi Kristian,

    I am also in IT working in the Buffalo area.  I am looking to purchase my 2nd property in the coming months.  When do you plan on moving to the states?

    David

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  • Steven Kopstein
    New York City, NY · Member since 2015 · 95 posts · 39 votes
    10y

    @Kristian Vassilev https://dl.dropboxusercontent.com/u/37635867/69%20bennett.pdf is the Condo Analysis

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  • Desi Arnaz
    Mortgage Note Investor & Multi-Family Property Investor · San Diego, CA · Member since 2010 · 177 posts · 51 votes
    10y

    Hi Kristian,

    Welcome to Bigger Pockets. I discovered BP a while ago but didn't really get involved

    until recently. I'm sorry I waited so long to "plug in". BP is an awesome resource.

    I am a cash flow investor. I have been a landlord since 1982 and I have also flipped a

    fair numbers of homes over the years.

    A couple of years ago I discovered the "paper" side of the real estate investment

    world. I purchased my first Mortgage Note. I have been actively acquiring Notes for

    passive cash flow since that time.

    I like the the passive nature, the safety and the cash flow that I receive from

    Performing Mortgage Notes. I still own "brick & mortar" real estate but my end game is

    to be 100% in paper at some point.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Kristian Vassilev  for buy and hold there are literally 100 different markets you could check into in the US>. And just as many that specialize in turn key sales .

    I would not get to focused on one area until you have explored much of the US markets first.

    things to consider when owning rentals of course is the city health and demographics and long term projections.. and the other big issue especially with older rental stock is long term Capital expenditures to keep said homes in decent shape..

    there is a sweet spot for rentals IE sq ft of homes and bed baths.. I like to also think in terms of utility costs for the tenants.. so think about areas with long cold winters utls can be very expensive etc.

    Think about a place like Las Vegas virtually no maintenance in the desert environment.

    Also think about the big island of Hawaii.. there you have NO heating systems for cooling systems to maintain.. and you can buy nice rentals out of HIlo for under 100k.. talk about cheap to own and maintain and maximizing your ROI.

    @Samuel Sedore  I have owned property in Canada and loaned money there.. some very different set of rules for foreigners ... But all in all I love Canada especially were I was at in Kelowna B/C  does not get much nicer than this.

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  • Andrey Y.
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    10y
    Originally posted by @Diamonte Zarba:

    Hello Kristian Vassilev,
    In my area specifically investors are seeing 15-20% cash on cash return and anywhere from 12-18% ROI.

    Could you elaborate on that mate? That transactions I deal with.. the ROI is universally higher than the CoC return (cause of positive appreciation). Say 10% CoC return, ROI is like 15-18% annualized given appreciation. How are you getting a lower ROI than CoC?

    0Reply
  • Samuel Sedore
    Real Estate Agent · Kitchener-Waterloo-Cambridge, Ontario · Member since 2013 · 408 posts · 90 votes
    10y

    @Jay Hinrichs If you have any further interest in Canada let me know! I don't know your level of investing, but if you are interested in lending and or qualifying I can pay a pre-determined return and buy you out at the end of it. BC is gorgeous! I would agree.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Samuel Sedore  my only interest at this time in Canada is to fly fish... fly my plane up into the San Juans and Victoria Island.. etc etc.

    Lending rules in CA are far different than US  ... I found out... so I would not lend there again.. rules are pro borrower.  And being a lender I need pro lender.  LOL.

    But I LOVE Canada

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  • Samuel Sedore
    Real Estate Agent · Kitchener-Waterloo-Cambridge, Ontario · Member since 2013 · 408 posts · 90 votes
    10y

    @Jay Hinrichs Check out moutcha bay fishing resort, my friend is a guide there you gotta see the salmon and tuna this guy pulls up. Check it out next time you head for a fishing trip,

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Samuel Sedore  inland passage or Queen Charlotte's ?

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  • Samuel Sedore
    Real Estate Agent · Kitchener-Waterloo-Cambridge, Ontario · Member since 2013 · 408 posts · 90 votes
    10y

    inland

    0Reply
  • John Dirgo Deweese
    Real Estate Broker · Aberdeen, WA · Member since 2015 · 101 posts · 74 votes
    10y

    The Hilo side of the Big Island does have the best chance for cashflow positive lower cost properties in Hawaii, but it still takes skill and some hunting (just like anywhere). 

    0Reply
  • Kristian Vassilev
    OP
    Investor · Sofia, Sofia-city · Member since 2015 · 5 posts · 0 votes
    10y

    I agree with Jay Hinrichs on the different areas and markets and that is why I asked for opinions and quotes on everyone`s market of operation as you are the guys and girls who best know your local market.

    To answer David - I will be coming mid spring, until then my goal is to have pinpointed areas across the states for investment. 

    Samual, I have been several times to Canada and I love it there, but I am currently searching investments with steady cash flow even if the appreciation can potentially bring better ROI - aka birth in the hand hypothesis, plus I do not have any grasp on Canada legislation, nor RE markets and I have a rule - If I do not know all risks involved in an investment and I do not have a plan how to counter them - I do not enter, so thank for the offer, but for now I will enjoy Canada as a tourist only :) (but who knows in the future).

    Steven - I get that in New York city the prices are different (higher), but the analysis you sent me brings too low of a cash flow for the asked cash on investment and even if your prediction holds true it is not very liquid if I decide to transfer funds or reinvest if an opportunity presents itself. 

    I will definitely look up the RE on the islands as as you mentioned with enough hunting and a bit of luck I also believe there are pearls to be found. 

    What I would ask and I think will be useful for everyone on BP is to share some good sites/maps on which one can see up-to-date Sale prices (not listing) and rents as well as utility expenses and taxation for the US, so we can all have easy access to how each market currently is and can do quick decision on where to look at for maximum profit. 

    PS: having a great time getting to know all of you :)

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