New to investment- need some help on where to start

29 Replies

I am a single mother living in nation most expensive ZIP Code in Silicon Valley where buying is definitely out of the question for me at this point of time. I am currently renting a house and is looking to invest in rental business out of California. I looked into some properties in Miami Florida below 300 K with 25% down and after all the expenses and mortgage monthly cash flow was $200. Question to all the followers are is this a good deal? Or should I look into investing in some other state with 100k? Do I have to put 25% down or is there anyway If I can put 10% or less as a down payment? Pls advice.

Hey @Neetu Nagi , nice to meet you. I have some out of state investors, investing down here and their getting close to that return, if not, more, on cheaper properties. 

On single family homes, townhomes, and strong HOA Condos with reserves, the minimum down required is 15%. Condos usually require 30% down if there is lack of reserves on an investment property in the state of Florida. 20% down gives you good rates, 25% down gives you great rates.

Just some things to keep in mind. 

Congrats on starting your hunt for an investment property! 

My first question would be: Why Florida? 

There are plenty of amazing opportunities in the Midwest States. For example, 300K in Springfield MO could buy a new construction duplex that is a 3/2 per side. Or it could fund a nice BRR on a 4-6 plex. 

So, if you are not already set on Florida I would look around to different states where your $300K will go much further. 

Originally posted by @Neetu Nagi :

I am a single mother living in nation most expensive ZIP Code in Silicon Valley where buying is definitely out of the question for me at this point of time. I am currently renting a house and is looking to invest in rental business out of California. I looked into some properties in Miami Florida below 300 K with 25% down and after all the expenses and mortgage monthly cash flow was $200. Question to all the followers are is this a good deal? Or should I look into investing in some other state with 100k? Do I have to put 25% down or is there anyway If I can put 10% or less as a down payment? Pls advice.

I would look in the Midwest where you can get properties under $100k and they can rent for $1,000 or more like here in Cleveland! 

 

@Neetu Nagi

Hi! I live a couple hours away from you in Penn Valley, CA. I have a half a dozen rentals out of state and am currently looking to add to my portfolio. The deal you described in Florida does not sound like the type of deal that a typical sfr investor would go after. As mentioned above, you could achieve much better cash flow in other markets.

Are you looking to create a cash flow business or is it more long term appreciation that you are looking for?

Originally posted by @Neetu Nagi :

I am a single mother living in nation most expensive ZIP Code in Silicon Valley where buying is definitely out of the question for me at this point of time. I am currently renting a house and is looking to invest in rental business out of California. I looked into some properties in Miami Florida below 300 K with 25% down and after all the expenses and mortgage monthly cash flow was $200. Question to all the followers are is this a good deal? Or should I look into investing in some other state with 100k? Do I have to put 25% down or is there anyway If I can put 10% or less as a down payment? Pls advice.

Welcome to the BP family . You’ve come to the right place for real estate investing, there are many investors and brokers here with a wealth of knowledge and experience to offer about the business. You can avoid massive headaches and costly mistakes through some of the advice and experience on here, there’s plenty of pitfalls we made that you can avoid by reading and asking questions.


Cleveland is one of the best turnkey market and the most popular for investors because of high rental demand and low cost of entry, property prices are pretty inexpensive here. With that said, don’t go for the cheapest house in the market, anything sub 40k nowadays can be a nightmare. The first thing you will want to do is check out this Cleveland Price & Neighborhood Map which will help you have a better understanding of the neighborhoods and general market in Cleveland. Good luck!

 

Some of the coastal states MIGHT be good for appreciation, but if you look at certain parts of the midwest you will notice you get better cashflow.........I invest here in the Bay Area and in Ohio.

I was able to put 20% down for my out of state investments. On a $100,000 purchase I would expect to cash flow $350-$400 per month after taxes, insurance, property management and mortgage.

Hey @Neetu Nagi

Let's do some quick math here

If you put down $75,000 (20% of $300k) to get $200 ($2400/year), your yield on that capital is 3.2% on an annual basis. 

With the same capital, I'm sure you could buy a better asset in other markets and get a better yield. 

Look at some Midwest markets OR buy a SMALL multifamily property with the same downpayment. Alternatively, you could invest in other asset classes to get better returns. 

Remember, your goal is to use your money to get more money AND not necessarily to own. 

Owning is a means to an end.

@Neetu Nagi you should consider Columbus, OH. Major market contributors are igniting this market (home of The Ohio State University (and medical center), Nationwide, Big Lots, L Brands, Cardinal Health). Large companies are flooding our market (Google, Facebook, Cover My Meds, and more). Great opportunity zones and a thriving job market and economy. Worth a look! Best of luck!

@Neetu Nagi I try to stay within the outer belt. I avoid D locations and below and look for the areas bordering large institutions with growth. Areas near Ohio State University campus are solid (Old North, Clintonville, Worthington), Nationwide (short north arts district, Italian Village, Victorian Village, Grandview), Nationwide Children’s Hospital (German Village, Schumacher Place, Merion Village, Southern Orchards, Old Town East, Franklin Park, Bexley, king Lincoln, Near East Side). Happy to discuss further if you have interest. Best of luck!

@Neetu Nagi   I have dozens of clients from Silicon Valley, and all over Ca, flipping about 250 props to them ( 500 or so overall ) , They all invest in the Cleveland markets for a reason. Its all about your team and knowledge 

Good Luck 

Welcome! And I as well would like to just add on to the cleveland hype. My partner has been there for several years and I'm just now getting into it myself. Good luck on the decision and any help that's needed reach out for any help I'd be more than happy to answer!