Real Estate Agent · Milwaukee · Member since 2019 · 33 posts · 14 votes
Hey everyone,
I just wanted to introduce myself. My name is Drew Lied and I recently joined Bigger Pockets. I'm excited to start investing in real estate. Right now, I'm prospecting areas around the US (currently living in Philly but from Milwaukee) that strong options. Any advice would be greatly appreciated. My current goal is to buy a cash flowing duplex, triplex or fourplex!
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
@Drew Lied use your homefield advantage - investing more then 20 minutes from where you live or work is a huge handicap! Unless you live in an area where the cheapest house is $1.5M you will have more success in a city you know and with a property you can get to short notice.
Welcome! I owned a fourplex in philly and a townhome in suburb philly. If you want to know more about philly area, I can share what I've known so far with you.
Homeowner · Altamonte Springs, FL · Member since 2018 · 29 posts · 14 votes
7y
Welcome Drew, BP is a great resource. I like how you're already thinking beyond your local market. Have you read David Greene's book on investing out of state?
Real Estate Agent · Milwaukee · Member since 2019 · 33 posts · 14 votes
7y
@Anurag Velchala - from what research I've done so far I haven't seen any great deals in Philly but if some were to come along I would definitely be interested as I know the area. However, the surrounding area has my attention
Real Estate Agent · Milwaukee · Member since 2019 · 33 posts · 14 votes
7y
@David McKee I'm about as frugal as they come. Always have been, always will be. But I've heard a lot about it and it's on my list. I'll be getting to it soon. Any advice for me in the meantime? My main concern is finding accurate/appropriate data that helps me make a informed decision on a market. Do you have any advice for me?
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
7y
@Drew Lied welcome to BP. If Philly market is like Baltimore, you may get more "bang for your buck", (or cash flow for your cash) with SFH. Everyone wants small multi family now, and it is driving up prices and driving down returns.
As @Ned Carey mentioned correctly, Philly's multi-family market is over priced. Good location properties are no where to be found. You want to find places where there are lot of employment opportunities like universities, hospitals, big companies.
@David McKee I'm about as frugal as they come. Always have been, always will be. But I've heard a lot about it and it's on my list. I'll be getting to it soon. Any advice for me in the meantime? My main concern is finding accurate/appropriate data that helps me make a informed decision on a market. Do you have any advice for me?
We're both at a similar point on our journeys my friend. I haven't read it as of yet either but I'm in the middle of his book on Brrrr-ing and will get to the out of state experiences. I'm gearing up for my house hack/primary residence at the moment.
Id say making connections, and learning from people that are in the markets ur interested in would be the way I'd do some due diligence. I don't have a set system in place yet but that would be my second move of attack. Figure what works best, while always being on the lookout for new ways to improve, and make it a system to make it easier. But first step is finding good "boots on the ground" through other connections. It's a people business!
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
@Drew Lied use your homefield advantage - investing more then 20 minutes from where you live or work is a huge handicap! Unless you live in an area where the cheapest house is $1.5M you will have more success in a city you know and with a property you can get to short notice.
@Drew Lied use your homefield advantage - investing more then 20 minutes from where you live or work is a huge handicap! Unless you live in an area where the cheapest house is $1.5M you will have more success in a city you know and with a property you can get to short notice.
I agree with this completely. There are deals in the Philadelphia market, they're just harder than ever to find right now because the market is hot and everyone is overpaying, but it doesn't mean there are zero deals to be had. Drew, shoot me a PM and let's grab a coffee and I'll try and help you out.
Specialist · Memphis, TN · Member since 2019 · 24 posts · 17 votes
6y
@Drew Lied Congrats on getting started on your journey to financial freedom! And, welcome to BP!
If your goal is cashflow, have you thought about higher-quality SFH?
I know there are amazing deals to be found in the multi-family space, however, something I often ask investors weighing the pros/cons of single-family and multi-family is this - When is the last time you drove by a tri-plex or quad-plex and just thought, "Wow, what an amazing house! I would love to live there!"? The response I usually get is a chuckle. Because they know those properties aren't always the nicest, they often aren't in the best neighborhoods, and they ultimately wouldn't want to live there either. That may be different for Philly, but that's been my experience around Memphis, Huntsville, and DFW.
What can make or break your investment is the quality of tenant(s) you attract and put in the property. Again, I know there are great multi-family deals out there and tons of success stories, so I'm not saying they can't be found or that they aren't successful.
However, if you could achieve the same results with one or more higher-quality single-family homes that cost just the same with less risk, are in nicer areas, and attract a better quality tenant that pays on time, doesn't trash the house, and is pleasant to work with - which would you choose?