Curious where everyone really makes money
Hello may I ask of any pointers or suggestions where anyone is doing well and what strategy. I was a small investor in the past in single family homes, buy and hold, rent them out kind of thing but honestly it did not do well for me. I'm more financially stable again and would like to invest my money wisely this time in real estate. If anyone would care to share their success in what areas in the U.S. I would like to join that sort of campaign and not lose money on my second go at this. Thank you.
To me the buy and hold is usually more about long term gradual type of investing
Flipping quickly with numerous properties has been a better way to increase my bankroll
I am looking to combine the 2 next year. Buy value add multi families. Fix up, increase rents/lower vacancies and then sell approx 3 years after buying
@Ken H. Multifamily over SFH to get started in my opinion. We've structured MFH where one one unit pays mortgage, 2nd or 3rd covers capex/vacancy/repair and maybe some profit. It also feels like it takes 6 months to really stabilize a property.
In SFH, vacancy and turnover=monthly loss, in MFH vacancy and turnover= mostly neutral Cashflow, but no out of pocket expenses.
Hey Ken, I invest in multi family properties with 2 exceptions the first house I bought I rent out and I just closed on an owner financed condo in a building where an investor I work with owes 96% of the other units. All others I have are 5 plus units.
I do focus on the forced appreciation and keeping rents at market rate so when I cash out refi I can maximize the amount of money the property can support being taken out. Cash flow I look for $200 minimum per door.
@Ken H. every strategy can work. Most strategies work most place. What is right for you depends on your goal, skills, resources and risk tolerance.
What is more important than what strategy you use is how well you do it.
@Ken H. Vacation Rental biz in the South East. Much more active than LTRs but well worth the time if you learn to self manage remotely. If you learn this skill you can own anywhere. Good luck!
@Ken H. I started with a SFR that I've gone back and forth between whether I should flip or LTR it. I'm currently at keeping it as a LTR as it's paid off so good equity and great cash flow. I can Refi or HELOC or just use as money in the bank with the cash it brings in each month.
Then I switched to Multi Family and that’s where I’m focusing now. I’m in the process of offering on another 4 unit building. It’s a value add as far as increasing rents to market value kind of gradually. There’s 3 long term tenants in it and 1 that’s ness was who is now at market rent.
I’ve also got a duplex I house hack, a 3 unit, and another 4 unit.
I’d like to go bigger but for now I’m staying focused on my area which doesn’t have too many properties larger than an occasional 5 unit. There’s 2-3 developments but that owner has his own management company and no reason to sell, so no way to break into that market.
I’ve chosen all of my buildings based on location. They’re in highly desirable places that should be positioned to hold their attraction for tenants and resale value for years to come.
@Ken H. I'll add one of my favorite sayings.
"Everything works somewhere, Nothing works everywhere"
@Ken H.I’m a mortgage lender.
I think it’s good to be in the industry so your film time job is still practice for your investing and vice versa