All Forum Posts by: Abraham Shamosh
Abraham Shamosh has started 21 posts and replied 46 times.
Post: Newbie to 5 units in 7 months!
- Posts 46
- Votes 13
Originally posted by @Junior Soares:
It seems like the second deal is less of a coc return than the first one percentage wise but dollar amount is more. I’m looking for my first oos property as well and is very challenging as I have to look far out of ny where I am for those 100-200k deals. Would love to know how you narrowed down to those markets.
Originally posted by @Chris Webb:
Originally posted by @Abraham Shamosh:
Originally posted by @Joe Villeneuve:
There is no advantage to starting in your own backyard. That is a foolish statement that should be ignored. You don't invest in an ara just because you know the area. The only advantage is if that area is not a good area to invest in you should know it. Knowing an area isn't what makes any area a good area to invest in.
However, when you find a good area to invest in, based on the numbers with $$$ in front (profit and cash flow), you need to learn about that area to the point you know it better than the one you live in.
True, however when your starting to look out of your area where do you start your research ? The town over ? Different state ?
I would first review what your criteria is. You mention that you are researching, what methods are you looking at? BRRR, Buy and Hold? Wholesaling? Once you Identify what method, then you need to figure out your metric - are you looking for appreciation, cash flow, etc? After this I would ID a few markets close by - 1 hour by driving - and run a few numbers. test the market using your metrics for your goals and if they do not work move to another market. One final thing, run your numbers for about a month to find what the average deal is and what the trendline looks like. Are prices increasing? are rents increasing with them? Remember when running the numbers, its just math and math doesn't often lie. Do not look for a way to make the math work if it simply does not. Hope this helps!! Good luck.
Thank you for the detailed response. So I’ve been researching fix and flips and brrrs. My goal is to produce large income from flips and brrr to produce monthly passive income for the long term picture. So max 1 hour ish away from me? I shouldn’t go into totally different states where entry is so cheap ?
Originally posted by @Maria Guevara:
Upstate NY is a good place to look. They’re inexpensive and rent-to-value is high. I have several in Rochester. I love that market.
Looks Like your in California, how has it been out of state investing ?
Originally posted by @Murtuza Bengali:
Very similar profile - just about getting into researching different markets and figuring out where to invest in our first rental property.
From the little research that we've done it looks like southern states have a ton of potential for numerous reasons, people migrating to cheaper areas/states, business moving to states with lower taxes, cheaper houses available for people to buy. We have been looking at Alabama, Tennessee, Texas and Florida. Even Boise, ID keeps popping up as a hot real estate market.
Some of our friends just went in for two single family homes in Memphis, TN for about 100K a pop and it is already yielding positive cash flows, if that is something you're looking for.
All the best!
Originally I was looking to start with Airbnb because the returns are so great, however held back on that because my area could get regulated and then I’m screwed because for the long term rental a single family home won’t cut it so now mostly looking into multifamily
Originally posted by @Joe Villeneuve:
There is no advantage to starting in your own backyard. That is a foolish statement that should be ignored. You don't invest in an ara just because you know the area. The only advantage is if that area is not a good area to invest in you should know it. Knowing an area isn't what makes any area a good area to invest in.
However, when you find a good area to invest in, based on the numbers with $$$ in front (profit and cash flow), you need to learn about that area to the point you know it better than the one you live in.
True, however when your starting to look out of your area where do you start your research ? The town over ? Different state ?
Hi BP members,
First post here, been doing a lot of research and ready to find property and pull trigger. Thing I’m struggling with is they say start in your backyard and you’ll have an advantage. I live in Brooklyn NY and my backyards very expensive for a newbie lol. How does one find a market and narrow down to find a deal when there are so many markets. Where should I start? Where should I look?