Newbie Investor Looking For Any/All Adivce

Member since 2021 · 3 posts · 5 votes

Hi All,

My name is Reece, I work as a data scientist for an asset manager. I got started into real estate earlier this year with a house hack (SFH) I rent to my long time best friends. My goal is to get to $2500mo cashflow in the next 5 years by looking for residential properties where I can get >12% cocr with at least $500mo in cashflow. Currently I am sitting around $450mo in cashflow. I'm focusing on this strategy but always open to new ideas (I find flipping really interesting. As an engineer I love taking things and making them your own).

Hope everyone is doing well!

- Reece

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Michael Dumler

Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes

@Reece Bernard CoC of 8-10% is a solid deal in my opinion, especially with the current nature of the market. Depending on your market, house hacking a 2-4 unit property can be difficult to come by as well. I know for a fact, here in Atlanta you're up against cash buyers that bid up to well above over asking. I find it useful to get creative when searching for house hack properties. Look for deals that have an in-law suite or a partially finished basement that can be converted into a seperate unit. Most investors will glance over such properites, not realizing their true potential. Best of luck!

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Jared HottleBusiness Member
Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
5y
Why not combine your interest in flipping and long-term buy and hold and try your hand at BRRRing properties. May be able to set your cash flow go a little lower too because you will be able to reuse your initial investment over and over again and grow your portfolio quicker.
[email protected]319-288-5382
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Anthoney Hanks
Real Estate Broker · Forney, TX · Member since 2019 · 1k+ posts · 399 votes
5y
@Reece Bernard, welcome to the BP community! Wishing you future success as you grow your portfolio!
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Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
5y
@Reece Bernard great to hear your house hack has been going well. Is it possible to pursue another house hack property by the end of the year and turn the current one into a rental? Gaining properties at >12% CoC is pretty difficult in this market. If this is the number your're set on, you may have to source your deals off market or become fairly aggressive when submitting offers. At the end of the day, I believe it's essential to track your numbers. Track the numebr of deals analyzed, offers submitted, offers accepted, total rentals, etc. Professionals track their numbers. Given you're a data scientist, shouldn't be too hard haha
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Reece Bernard
OP
Member since 2021 · 3 posts · 5 votes
5y
@Michael Dumler I have been tracking the numbers! A lot of what I am analyzing is 5% wo a property manager. It is disheartening, but I am finding the occasional 10%. I am looking to do another househack in 2022 March, Ideally MF!
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Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
5y
@Reece Bernard CoC of 8-10% is a solid deal in my opinion, especially with the current nature of the market. Depending on your market, house hacking a 2-4 unit property can be difficult to come by as well. I know for a fact, here in Atlanta you're up against cash buyers that bid up to well above over asking. I find it useful to get creative when searching for house hack properties. Look for deals that have an in-law suite or a partially finished basement that can be converted into a seperate unit. Most investors will glance over such properites, not realizing their true potential. Best of luck!
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Dan GuentherBusiness Member
Real Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
5y
@Reece Bernard
Welcome to the community! It sounds like your already on a great track towards your goal of $2500/month. Do you plan to continue to use the rent by the room strategy? This is a great way to really stretch your cash flow. Also, if you do end up going multifamily you could use a mixed strategy. Live in one unit, while running a short term rental in your spare rooms. Then long term rent or rent by the room even for your other units. Lots of options out there to maximize returns, especially if you're willing to sacrifice a bit of comfort for a few years.
Good luck!
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Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
5y
It sounds like you are on track to hit your goal. If you have something that protects your money, you know it inside and out and it works, then stay with that. There are lots of shiny objects in real estate but it should be a normal boring process that generates money. If you are looking for a rush , there is something other than money you are after.
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Justin WindhamPro Member
Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
5y
@Reece Bernard
It’s nice to have you here!

This is a great forum with very knowledgeable members that will help to guide you in the right direction, whether that is real estate sales, wholesaling, flipping, rentals, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance. You will be able to share your story and receive plenty of helpful feedback from experienced members.

There are a few self-contained guides that you can access here: https://www.biggerpockets.com/guides

Alerts can be really helpful too: http://www.biggerpockets.com/alerts
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