New member in Rochester, MN, area

15 Replies

Hello all!  My name is Brent Olson and I am a new study to the real estate investing area.  I am a 43 year-old 6th grade teacher and football coach.  I have been teaching for 19 years and have no plans to retire anytime soon, but I am interested in investing in real estate.  

My short term goal is to pay off our credit card and car loan balance and begin to save up enough capital for a down payment on a rental property.  I know that I am not a spring chicken anymore, but we are now at a place that we can pay off all of our debt and begin to accumulate assets.  I hadn't thought about "finances and wealth" much before, but this summer during break, I picked up a copy of Rich Dad, Poor Dad, and it made me realize that I have always purchased things that were liabilities. I don't truly have any assets that will make me money. I have looked at various investments, from the stock market to P2P leanding, to REIT's, etc... Rental properties interest me because I feel that it is a stable investment that is great for a buy and hold investor.

My long term goal is that I'd like to accumulate a portfolio that will allow me to retire early from teaching.  I very much enjoy teaching, but after teaching for 19 years, I'm not sure if I'll make it to my full retirement age of 67!  I will have 43 years into teaching if I make it that long.  I'd also like to supplement my teacher pension just for peace of mind with all of the attacks on pensions nowadays as well.  I've also been investing into a personal 403(b) since I started teaching, and while that is great, I also can't take advantage of that money now while I am "young"!

Currently, I've been learning as much as I can about real estate investing.  I have been reading forums, listening to blogs, reading books, and analyzing properties in my area.  The Rochester, MN, area seems to be a "tough" area for a beginning investor to get into.  I realize I am probably a couple of years away from getting into my first property, but the price range of homes in Rochester makes the numbers very difficult to work out.  I've looked into some turnkey companies as I would definitely have to be a more "hands-off" investor since coaching and teaching prevent me from getting to a property quickly.  Memphis, Indianapolis, Atlanta, etc, all seem like great markets for a turnkey purchase.  I'm thinking that I'd like to get about $30,000 in capital saved up and then purchase a rental in a market like that through a turnkey company for about $22,000 in costs so that I would already have $8,000 in reserve.

Hopefully I can find some great people on this site and I am also interested in any meetings of real estate investors in the Rochester, MN, area so I can do some networking, get advice, and learn the ins-and-outs.  

Football starts next week, so I will be very crunched for time until after Halloween, but I look forward to hearing from all of you.  Thanks for reading this novel!

@Brent Olson local REIA's can be a good resource to learn more too when your time allows. You have a solid plan in place, now it is just time to execute the plan when your time allows you to talk to companies in other markets to help you hit these goals. The process through TK is remarkably efficient with the right companies.

It is nice to hear football chatter again. Fall is the best time of year!! Pigs Sooie!

We meet every 3rd Thurs. at 7pm Keller Williams office.

2765 Commerce Dr NW, Rochester, MN 55901

We would love to have you.  I am going to be gone for our next meeting but will be in there in Sept.   I hope to see you there in Sept.

Originally posted by @Brent Olson :

Hello all!  My name is Brent Olson and I am a new study to the real estate investing area.  I am a 43 year-old 6th grade teacher and football coach.  I have been teaching for 19 years and have no plans to retire anytime soon, but I am interested in investing in real estate.  

My short term goal is to pay off our credit card and car loan balance and begin to save up enough capital for a down payment on a rental property.  I know that I am not a spring chicken anymore, but we are now at a place that we can pay off all of our debt and begin to accumulate assets.  I hadn't thought about "finances and wealth" much before, but this summer during break, I picked up a copy of Rich Dad, Poor Dad, and it made me realize that I have always purchased things that were liabilities. I don't truly have any assets that will make me money. I have looked at various investments, from the stock market to P2P leanding, to REIT's, etc... Rental properties interest me because I feel that it is a stable investment that is great for a buy and hold investor.

My long term goal is that I'd like to accumulate a portfolio that will allow me to retire early from teaching.  I very much enjoy teaching, but after teaching for 19 years, I'm not sure if I'll make it to my full retirement age of 67!  I will have 43 years into teaching if I make it that long.  I'd also like to supplement my teacher pension just for peace of mind with all of the attacks on pensions nowadays as well.  I've also been investing into a personal 403(b) since I started teaching, and while that is great, I also can't take advantage of that money now while I am "young"!

Currently, I've been learning as much as I can about real estate investing.  I have been reading forums, listening to blogs, reading books, and analyzing properties in my area.  The Rochester, MN, area seems to be a "tough" area for a beginning investor to get into.  I realize I am probably a couple of years away from getting into my first property, but the price range of homes in Rochester makes the numbers very difficult to work out.  I've looked into some turnkey companies as I would definitely have to be a more "hands-off" investor since coaching and teaching prevent me from getting to a property quickly.  Memphis, Indianapolis, Atlanta, etc, all seem like great markets for a turnkey purchase.  I'm thinking that I'd like to get about $30,000 in capital saved up and then purchase a rental in a market like that through a turnkey company for about $22,000 in costs so that I would already have $8,000 in reserve.

Hopefully I can find some great people on this site and I am also interested in any meetings of real estate investors in the Rochester, MN, area so I can do some networking, get advice, and learn the ins-and-outs.  

Football starts next week, so I will be very crunched for time until after Halloween, but I look forward to hearing from all of you.  Thanks for reading this novel!

 Hello and welcome to BP! Best of luck to you!

Originally posted by @Jessica Grewe :

We meet every 3rd Thurs. at 7pm Keller Williams office.

2765 Commerce Dr NW, Rochester, MN 55901

We would love to have you.  I am going to be gone for our next meeting but will be in there in Sept.   I hope to see you there in Sept.

 Thanks for the invite. With football practice starting next week I probably won't make it until November or December, but I will definitely check it out then. I'm very eager to learn as much as I can.

Originally posted by @Alex Craig :

@Brent Olson local REIA's can be a good resource to learn more too when your time allows. You have a solid plan in place, now it is just time to execute the plan when your time allows you to talk to companies in other markets to help you hit these goals. The process through TK is remarkably efficient with the right companies.

It is nice to hear football chatter again. Fall is the best time of year!! Pigs Sooie!

 Thanks for the positive words. I feel that I do have a great plan. My biggest enemy at times can be impatience. I know what needs to happen now. I just want it to happen now!  I have to really force myself to think rationally and slow myself down at times. 

Fall and football is a great time of year...

Hey there @Brent Olson , welcome to the REI game! I would like to wish you all the best. We do all kinds of deals in the Indianapolis market. Let us know what you are interested around here and hopefully we can help you if you are interested. Good luck with this school year as well. I am a former teacher and have some teachers on my team. God bless!

Brent.... If you ever look at Indy Brett is a good contact.  I am glad you have an investors meeting you can attend in Rochester. I have been there many times. Housing there is in demand because of the clinic and I'm sure it plays sort of like a big college town with some twists. Your local meeting should give you valuable info. I bet short term rentals is a HUGE strategy up there. Caribou Coffee Rules!!! 

@Andy Rumple Thanks for the response.  Rochester is a very big market right now with the Mayo Clinic planning on doubling in size in the next 25 years (at least that is their plan).  Rochester is using the DMC (Destination Medical Center) moniker.  If it takes off, the housing market in the region is really going to boom.  I'm looking in a lot of the surrounding communities for properties, but this is an area where the majority of people look to buy instead of rent, but maybe with the bigger boom in medical care, people may be looking to rent if they're here for health reasons.  Like you said, short term rentals....

If you buy a 22k turnkey you'll need way more than 8k in reserves. Please do lots of research. Thanks for molding young minds.

Good luck!

@Josh C.  I was thinking of a property in the 75-90k range which would be "approximately" 20-25k down and then holding 8k in reserves.  You don't think 8k would be enough?  How much would you think would be appropriate.  I am definitely doing lots of research and learning.  I'm not planning on jumping into anything that I haven't thoroughly looked over.  Thanks for any advice that you give.

@Brent Olson I was thinking you wanted buy for 22k all in. The 90k range is much safer. Better plan. 8k is enough for a turnkey in that range. The super low end stuff can get expensive fast. That's all. 

Thanks for the welcomes.

Been doing a lot of reading, researching, and watching webinars here on Bigger Pockets.  It is a busy time of year for me right now with football, so I'm not able to get out there and look for deals in the area. I continue to scan various websites for properties, but I'm thinking almost all of the good "deals" in the Rochester area don't make to the web listings.  I can't make the numbers work on any of them.  

One thing I've been thinking about is how to come up with cash for a down payment. Still working on paying off about $11k in credit card debt that is 9.99% so I want to pay that off first since it will be tough to find CoC returns of above 10%. So that slow process to pay off that card and then build up $35-40k in savings could take me a couple of years. One avenue I've considered is cashing in my personal 403(b) account. I have about $60k in it right now. This is my personal retirement above and beyond my state teacher's retirement account(TRA), which luckily is a defined benefit plan(as of now). If I cashed out that 403(b), I'd probably be looking at around $40k, so I'd lose about 33% in that. I listened to Michael Swan, another teacher, on his podcast with Brandon Turner about how he cashed out his retirement accounts and he said it was the best thing that he ever did. I agree with his thoughts of luck is when opportunity is seized. I'm not sure if the markets are right yet for me to go with this strategy though.

Any thoughts?

Hi @Brent Olson ,

You can do it!!  Don't forget to reach out to me anyrime.  I would love to advise you on your path and how to achieve your goals.

Swanny

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