GETTING OVER ANALYSIS PARALYSIS

4 Replies

I have never purchased my own property before, but I have been getting my "ducks in a row" since last year.  Learning about the stock market and the real estate market have been going hand in hand.  The language in both markets is often used interchangeably.  I have a habit, which has its pro and cons, of over analyzing situations until I psych myself out of taking the first step of action.  My goal for 2022 is owning my first small multifamily home in the Newburgh, NY, area.  I want to get my real estate salesperson license soon.  Yes... I know... I do not need a real estate license to buy my first property.  I figured I can use the education from the courses, which is 75 hours here in NY.  I will not be doing this alone though.  I have a trustworthy friend who is down to walk the path of real estate investment with me.  He brings the hustle and I bring the capital and all the information lenders need to get us pre-approved.  He has read tons of real estate books and I have watched dozens of Bigger Pockets webinars.

The challenge - taking that first step!  I feel ready but something is holding me back.  I am telling myself I need to learn more.  I need to save more.  I need more time.  Today, I signed up for Pro membership because I want to commit to doing a minimum of two property analysis' daily.  We have already started and analyzed a few deals but they do not seem to be good deals.  There wont be much cashflow and since it is our very first property, we planned to house hack.  Renting in NYC is expensive so most people would think that owning is the better option since the money going towards rent can go towards something we own.  Yes, I 100% agree!  The thing is that my fuel and toll expenses will go up since Newburgh is the only affordable area near the city and in NY state right now.  Last night, I came to the realization that house hacking might not be the best first option since the amount coming out of pocket will not actually equate to "living for less."  I can stay in my current apartment, purchase a small multifamily, and rent out all the apartments in the property.  I will be happy with at least $100 cashflow and avoid the mistake of moving and committing to an area that will be far from my job and actually increase my living expenses instead of reducing them.  I feel like I am making the right mental choices but its hard not to believe I am overthinking things.

Has anyone else felt like they have analysis paralysis?  How did you overcome it?  What was the pivotal moment?

I'm pretty much in the exact same boat with the same mindset, after reading your post! Working on my RealEstateU course towards my salesperson license, looking to purchase in/around Newburgh, living in Manhattan. Have you found any decent properties through your analysis? I'd like to use a VA home loan but many sellers are looking for a high down payment or a higher price than asking with little room for negotiation.

I have saved searches on Zillow for the purpose of receiving alerts and doing the analysis. The most recent one that I ran the report for was 1821 Route 300, Newburgh. I ended up with Monthly cash flow -$928 /mo. if house hacking so it would be considered the living for less option. The issue is that Newburgh is at least 66 miles away which would multiply the amount I spend on gas monthly and also tolls, not including the hours off of my life that I would spend traveling. Together, this would not be living for less. I know the VA loan requires us to live in the property as primary residence for at least one year. The wiser option would be get the property to strictly rent it out completely since I am searching for at least two to three family multifamily.

Im not sure if this will work but here is the link to the analysis I did - https://www.biggerpockets.com/...

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Hey, @Barbie Melendez ! Love that you are so thorough in your analysis and that you're taking your time! But, my advice to you comes in the form of a quote "The best time to buy real estate is yesterday..." 

Find a property that's in good condition and makes sense and go for it! Buying any property can be scary but as an investor, it is important to detach from any emotion and look at your properties as an investment only. Hope that helps!! And, best of luck!

Originally posted by @Barbie Melendez :

I have saved searches on Zillow for the purpose of receiving alerts and doing the analysis. The most recent one that I ran the report for was 1821 Route 300, Newburgh. I ended up with Monthly cash flow -$928 /mo. if house hacking so it would be considered the living for less option. The issue is that Newburgh is at least 66 miles away which would multiply the amount I spend on gas monthly and also tolls, not including the hours off of my life that I would spend traveling. Together, this would not be living for less. I know the VA loan requires us to live in the property as primary residence for at least one year. The wiser option would be get the property to strictly rent it out completely since I am searching for at least two to three family multifamily.

Im not sure if this will work but here is the link to the analysis I did - https://www.biggerpockets.com/...

Find a local agent to help guide you and give you the last bit of confidence to pull the trigger. Look up Sarah Hooff, she's the best up there and helped me find properties. I'd suggest staying away from a big rehab on your first property. Buy something move in ready or that just needs minor work so it is not too overwhelming and removes some variables from the equation.

House-hacking and buying a pure rental require two different approaches in my opinion. Decide where you want to live and which strategy you want to use first, then find the property that fits.