All Forum Posts by: Alex Johnson

Congratulations on looking beyond where you live. I've found the best deals are rarely where you are especially on the west coast. Since the numbers may be very similar in these markets its important to have a few conversations with people on the ground that you can rely on. That could be  realtors,   PM co's or turnkey providers who can bring you all of that. If you can get comfortable with the team and can rely on them, this could save you headaches and costs over the long term. I've had success in Detroit, you should add it to the list. 

Hi Alex, I'm also based in the pacific northwest (Seattle) and own 9 doors in the midwest (Memphis and Detroit). I've had success in both and would be happy to connect and share my thoughts. I'm also looking into Cleveland as well.

@Alex Johnson Not sure I'd invest on the west coast due to all the tenant-friendly laws!

If you are trying to pick a market, the logical process would be to:

1) Analyze their potential - which it seems you've done

2) Interview Core 4 team members and compare what they know, their approaches and how comfortable they make you feel. Just be careful of not falling for hype and be analytical!

3) Pick an area and ask the Core 4 member you spoke with to intro you to the other Core 4 members. Make sure they are all consistent with their knowledge, approach and professionalism.
---If one seems out of sorts with the rest, ask for more intros.
---If you can't assemble a cohesive Core 4, maybe it's time to go back to Step #2.

Also recommend you check out the Detroit market! There's a TON of online feedback about the city as we just hosted the NFL Draft and shattered the Nashville attendance record:)

We can also show you where there's a committed $3.5B in investment in Detroit.

I agree with the comments about investing locally or within a reasonable drive, say 2 hours. 

@Henry Clark made some great points and you're a realtor so you can use that to your advantage. The reality is that 2024 is a challenging market with higher prices and interest rates.

I still believe in West Coast appreciation.  I invest in the Bay Area (pre-2013) and Indianapolis metro area. I posted many times about this but I'm going through a lot of challenges with Indy. What was supposed to cash flow on paper isn't my reality - my suggestion is don't buy Class C inexpensive properties OOS (best left to locals). Being 2000 miles puts me at a disadvantage to not be able to check on my Indiana properties. 

If you're considering OOS, I would highly recommend flying there. Video tours, photos, Google map images don't show a lot of things.  Also look at property tax rates, how often properties are re-assessed and if there's a cap on property tax increases. I had 17% property tax increases recently in Indy. I'm going to be the dissenter here but I may exit out of the Midwest in the near future.

This is a great post about cash flow and why numbers on spreadsheets only present a partial picture. 

https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

OP you’re a realtor.  Look through the listings in Portland and where you might live.

1.  What is your personal situation?  Single, roommates, spouse kids, etc.

2.  Do you need to live in a specific area or can you choose?

3.  Look for both cash flow and value add.

4.  Look for the worst house in a great neighborhood with good school system or near major attraction.

5.  Look for a demo home in a new development in a great neighborhood.

6.  What is your rent rate versus mortgage payments? Can you get a roommate.  Could be travelling nurses near med centers.  You’re looking for your unfair advantage versus other investors.

7. Look for a house you can ADU, BRRRR, or sell off a lot.

8.  Look for a nasty lot that you can split 2 or 3 times.  Hire an excavator or bulldozer and leave big trees.  Build a small pond.  Has a great view.  Walk out basement potential. Etc.  

9.  Any town near you look for a flat topped church or old elementary school for sale.  Move into it and slowly rehab.  

10.  Rent near a military base. They have guarantee funds from the government. Any issues you call their commanding officer.

If your looking for the same 3/2 perfect home or 4 unit MFH everyone else is looking for they have you beat as a new investor. Use your unfair advantages.

Tax free capital gains in primary 2 out of 5 years.  Guarantee good renter, you.  Already positive cash flow if your paying rent out.  Part of the sales commission goes to you when you buy.  Possibly all of the sales commission goes to you when you sale.  You know the market.  You can vet your team plumbers, electricians, your the property manager, insurance, banking, etc.   You have the unfair advantage. Use them. 

Right now, it's clear you aren't looking at properties in real life, so it's not surprising you are stuck in analysis paralysis. Looking online and running numbers when you aren't looking at anything in real life will never give you the confidence to pull the trigger. It's like a video game you are playing with real money.

Do you have friends from local meetups who invest in any of those areas? Do you have boots on the ground in any of those areas? How did you make that list? Where is your competitive advantage in those areas?

 I know them all, happy to help. Also stop trying to reinvent the wheel, just do long term. Getting reliable staff to turn a property in a day or two is not reality. Be happy with your 10% or better net cap and move on . At the end of the day MAYBE you will get a few % more with midterm, but A LOT of headaches and hands on .Aso you will have to add about 10k for furnishings, IMO this is not a good Idea.  Also, you better be cash or have not less than 45kish, 

Good luck 

Given the limited options for furnished, medium term rentals available to health care professionals you don't need to be directly adjacent to the hospitals to be attractive. And in many cases it would be more attractive to not be directly adjacent to them, especially since these customers will be staying for months in an area. They will need access to a grocery, etc, and need to feel safe in the location.