All Forum Posts by: AJ Singh

@Isaias Boesi

go an hour east of downtown LA and you can find decent cap rate rental properties in riverside and san bernadino counties

Going OOS is great but only if you can scale five properties in a couple of years. Making a few hunderd dollars per month on a couple of properties does not make any sense with vacancies and repairs.

@Shay Singh

As a first time investor, start with single family rentals. you can buy using turnkey or MLS route.

your local area can present opportunities and you can join local REA groups to educate yourself more.

Recession in housing market is given and if you are tapping your line of credit as a down payment, you are leveraged to the hilt. 

to make $4k net a month, you will need to generate $6k after prop mgt fees and keep a cushion of $2k a month for repairs.

real estate investing is great but have to acknowledge that repairs are always needed as you scale portfolios.

look into midwest and midsouth areas. lot of reputable turnkey providers and realtors on BP. i am sure you will connect to the right source and start your journey. If you keep on thinking about probable recession, it may lead to paralysis of analysis scenariors and you may never start investing.

Ans you dont need 10 cap rate but probably a 15% ROI to get your net 4k a month unless you have lump sum of 25k as a cushion for emergencies

@David Katz

we have asked for two percent of final price as credit in every OOS transaction to defray the lender fees.

i have not bought turnkey so dont know if the provider will agree 

but no harm in negotiating and asking the seller.

@Michael Lambert

there are deals in riverside and san bernadino counties. you can find rentals yielding positive cash flow

OOS investing only makes sense if you grow your potfolio quickly to five plus homes.

good luck

@David Katz

keep it in a money market account which are yeilding 2% in our area. keep a few thousand initially and go into ratios once your portfolio is built up.

@Angela Hill@Kurt Michaelson

the multifamily next to uc riverside and even redlands go for low cap rates. But can appreciate quickly 

@Gre Clifton

i would call a real estate agent from the 80k listings on the same street and check the condition of those properties. If they are similiar, go for those ones

The property mgt co has to be local and they can take you on as a client without roofstock connection

Dont overpay 20k for a property. The hvac units plus furnaces run generally 6k to 8k

 Right now everyone wants to be an OOS investor. 

Be patient and if you really want to buy turnkey, there are great companies on BP forums.

Roofstock is a facilitator only. And if the seller is a LLC with roofstock people, that means they are flipping the property

You have not mentioned which part of the country you are investing in, But some cash flow markets once the housing market goes south, can take fifteen to twenty years to come back up.

I am invested in Memphis. The current prices right now were achieved back in 1996.. twenty years for the market to come back

@Shawn Verma

Roofstock is a marketplace facilitator. Most of the listings look to be from investors selling to new buyers. Its definitely not a turnkey operator.

i would suggest selecting a cash flow market first. visiting a couple of turnkey providers, a local investor focussed realtor ( hopefully an investor themselves)

that should get you in the game of RE.

@Carter J.

you can set your portfolio buy going one to one and a half hour east in riverside or san bernadino county. thats the way i started initially and i still hold those properties from 2010. 

once equity has built up locally, you can scale to OOS using the equity appreciation.

of course in la county and orange county, prices are high but then there is watts area where a few investors specialize and do very well. 

there is a still a lot of action here...

@Bharath Danda

cordova is a great neighborhood for investors. the real estate value have gone up over the last three years. 

$1525 rental was worth $120 to $130k three years back but certainly not new construction which doesnt mean much since you are not living there. 

also the pool of buyer willing to pay $1525 is low compared to the average $1100 to $1200 pool. please keep that in mind.