Hi BP Fam,
After 1 year of BP education and saving $ I am ready to take the plunge. I have settled on the Cleveland, OH market and want to start with a multifamily investment. I have found a very reputable Management company and I am now looking for a Investor friendly agent/broker.
I would ideally like to invest in the Lakewood area but I am open to Brooklyn Heights, Newburgh Heights and possibly even Parma. I am not scared of light rehab work for a distressed property but it must have comps to show potential upside and must be reflected in the price.
My investing goals for year 1: To purchase 1 MF property in cash (no debt), turn it into income producing within 3 months of acquisition with 1-2 year lease tenants, hold for a further 3-6 months and then apply for financing. Use the all the money to roll into my next acquisition, and keep rolling.
My journey starts today with the first step and I am cautious, patient but very motivated to get going. All feedback, intro's and general helpful tips would be welcomed, and I will be following up with bi-monthly updates so I can give back to this amazing community, to whom I am already greatly indebted to!
Mark, welcome to the investing world! Where are you from and when are you looking to close your first deal?
NJ - 1-3 months
Welcome Marc- Sounds like you have done your research, your method is exactly what I coach my clients to do, so I am a fan- if you buy right, it works like a charm. Feel free to reach out to me if you want to talk specifics. Good luck!
@Corby Goade - Thanks - any hard and fast rules - like Rental income being 1% of home value? B class over A class neighborhoods, waiting to buy (cyclical market), or just jumping right in?
@Marc Toledano - I'm not a fan of the "rules of thumb" on a national scale. Every market, deal and investor is so different. I tell all of my clients to evaluate their long term investing goals- if the subject property is one that gets them closer, then it's a good deal for them. If they're not sure, we move on to the next property.
My best advice is to drown out all of the noise and trust your gut. Even a mediocre deal will turn out to be profitable if you manage it properly and hold on to it long enough. Personally, if I have two viable exit strategies, then I make an offer. My market is incredibly competitive and appreciating faster than any other market in the country, so the numbers are different than what many markets support. I like to be able to either resell it immediately for a profit or be able to cash flow (not at 1%, just positive cash flow), so either way I can't lose. The only risk is to not act.
Best of luck!
@Corby Goade - sound advice Thumbs up and ty!
Just had a local realtor reach out to me today in my Inbox - scheduled a call with him for tomorrow - excited to hear his SOTU and get some local 'boots on the ground' info and data....1 step closer!