Making an Entrance into Rentals

11 Replies

Hello Everyone. Excited to be a part of this awesome group! I am looking to make real estate investments for cash flow generation, move to Spain, and work on the projects I am interested in. I've been in investment business for a long time, but I am a public markets investor, not much experience in RE. Looking to move pretty quickly and interested in multiple geographic markets. Eventually, looking to be more passive investor but very willing to be more active at the beginning as I am learning the ropes. Open to multi and single-family rentals, turnkey or forced appreciation. I currently have a corporate job and won't have any problems obtaining financing and I am looking to leverage. Somewhat debating whether I should look into Spanish RE, given, I am planning to live there eventually and mortgage rates are lower there. I want to start with a few hundred K and continue to build on. Any advice for me? Thank you

My advice is to get as educated as possible before jumping in. Seems like you're really excited about real estate which is great, but the more you learn, the more I think you will narrow your focus a bit from being open to any and every type of investing in every market. Riches are in the niches.

@Yulia Minina welcome to real estate! The best advice I got was to learn and apply. I know that sounds vague but I’ve literally learned different strategies and applied them as soon as possible and it’s worked out well. Like the BP podcast always says, you have to jump in. Good luck!

Welcome to the group!

Spain is a nice vacation land, things felt a bit more laid back there. I heard that there was also a visa program for (Russian?) investors... However, Catalonia may be a little tricky these days (protests, aversion against tourists in Barca)...

My dad backed out of Spain, but that was in the 70s: the apartment blocks he saw were too secluded back then...

Anyways, good luck and hope you'll find something nice :)

@Yulia Minina congrats on your vision and plans. Hope you achieve them and live your dreams.

You want to consider how passive or hands on you want to be. If you can determine that, then you can then narrow down your options.

For instance, if your goal is to be completely passive then you want to consider passive investments such as multifamily syndications.

But if you want to be completely hands on, you can flip houses, purchase a duplex and so on with other options.

Just depends on your direct focus.

Hi @Yulia Minina and welcome to BP!

Spain is a great place to live in and invest. May I ask in which part are you planning to move in? 

We are in a transition period right now for the Spanish market and good opportunities may arise in the near future. I live and invest in Barcelona and, despite of the recent political unrest, Barcelona is a perfectly safe and very comfortable place to live.

It is true there's been ackward situations recently, but Spain is a complicated nation (as many others) and we have always thrived to succeed both economically and culturally. Barcelona is particularly blessed by its weather and convenient location in Europe.

On investing in RE, if you are familiar with public markets, it is the same with RE. Make your profit on the purchase, have a target ROI in accordance with your risk tolerance and go for it.

If you need assistane on Barcelona's local market, please feel free to reach out.

Best

Javier

 

Originally posted by @Yulia Minina :

Hello Everyone. Excited to be a part of this awesome group! I am looking to make real estate investments for cash flow generation, move to Spain, and work on the projects I am interested in. I've been in investment business for a long time, but I am a public markets investor, not much experience in RE. Looking to move pretty quickly and interested in multiple geographic markets. Eventually, looking to be more passive investor but very willing to be more active at the beginning as I am learning the ropes. Open to multi and single-family rentals, turnkey or forced appreciation. I currently have a corporate job and won't have any problems obtaining financing and I am looking to leverage. Somewhat debating whether I should look into Spanish RE, given, I am planning to live there eventually and mortgage rates are lower there. I want to start with a few hundred K and continue to build on. Any advice for me? Thank you

Welcome to the site Yulia. I see you are looking into turnkey investing. The majority of folks interested in turnkey flock to the turnkey markets in the USA. There are tons of turnkey markets out there. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

  • Cleveland, Ohio
  • Dayton, Ohio
  • Toledo, Ohio
  • Youngstown, Ohio
  • Cincinnati, Ohio
  • Memphis, Tennessee
  • Birmingham, Alabama
  • Huntsville, Alabama
  • Kansas City, Missouri
  • Saint Louis, Missouri
  • Indianapolis, Indiana
  • Detroit, Michigan
  • Erie, Pennsylvania
  • Louisville, Kentucky
  • Milwaukee, Wisconsin
  • Jackson, Mississippi

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

  • Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
  • Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
  • Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
  • Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
  • Make sure your property manager is a licensed real estate brokerage.
  • Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.

@Yulia Minina

Yes first thing is to get educated. One thing to keep in mind is that things work differently overseas. I've been investing internationally over the last few years and my playground is Mexico, the Caribbean, Central and South America and Southern Europe (so including Spain). What works in those countries is different than what works in the US. Most of what you'll learn here is about what works in the US. Some things are similar but some of the most popular strategies in the US won't work in these countries. You can still learn about international markets here. A few of us on here invest internationally so feel free to reach out to us.

@Matthew Song Loong

Anyone can get Spanish residency and eventually a European passport by investing a certain amount of money in Spanish real estate. It's not just for Russians!

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