All Forum Posts by: Allen Zhu

I'm curious if anyone has seen tremendous success with out-of-state  real estate investing. From what I’ve observed, many of the most successful investors tend to focus on markets near where they’re based or in areas they’re familiar with. However, I’m wondering if anyone here has had success investing OOS in locations hundreds or even thousands of miles away and still managed to maintain solid cash flow.

Have you been able to overcome the challenges of investing in a distant market, and what strategies or systems have worked for you? I’d love to hear about any experiences where out-of-state investing has proven to be both profitable and manageable in the long run.

Have you had any prior experience with section 8 or it's your first s8 rental? 

Hi everyone,
I'm looking to dive into real estate investing and would love some advice. Currently, I own a restaurant in Florida that's generating a decent income. My next goal is to implement the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method, specifically in Birmingham, AL, and focus on Section 8 properties.

With relatively good rehabs, I’m not looking to be a "slumlord"—I want to provide quality housing for tenants while also ensuring my investment is successful.

I’ve heard mixed reviews about Section 8 tenants, but I’m eager to learn more. Any insights or tips you can share about the Section 8 process, the Birmingham market, or challenges to expect? I want to make sure I’m as prepared as possible before diving in.

Thanks in advance for any advice or personal experiences you can share!

 another market im looking at is jacksonville , FL

@Jaycee Greene for right now where I'm standing financially 5-10

Is Reading, PA a Scalable Rental Market?

I’m considering investing in the rental market in Reading, PA, and I’ve noticed some positive trends that make the area appealing. The population and property appreciation have grown year over year, along with rising rents, which suggests strong demand for housing. Here’s what I see as key factors for scalability:

• Population Growth: The area is experiencing steady growth, which usually drives demand for rental properties.
• Property Appreciation: Reading’s property values have been increasing, indicating it’s becoming a more desirable place to live. This bodes well for long-term equity growth.
• Rising Rents: The uptick in rental prices shows a strong demand for rental properties and could lead to better cash flow for investors.
• Economic Strength: Reading has a diverse economy, with key sectors like manufacturing, healthcare, and education providing stability.
• Rental Demand: Low vacancy rates signal that people are actively renting in the area, which is essential for scalability.
• Future Development: Any upcoming infrastructure projects or new businesses could further boost the market.

With these positive trends, it seems like Reading could be a scalable rental market. However, I’m curious if anyone here has experience in the area or insights on the market’s long-term potential.

Has anyone here considered investing in real estate in Reading, PA? If so, I would appreciate hearing your thoughts and experiences regarding the local market, investment opportunities, and overall outlook for the area

@Obed Calixte for a rental. 

@Ty Coutts I agree it's to high , searching for new lenders or PML , I didn't account for maintenance because it was basically a full gut , everything is brand new. 

Hey everyone,

I'm new to real estate and I’m looking for feedback on a project I’m working on. Here's the deal:

• Purchase Price (PP): $95k
• Renovation Budget (via HML): $60k
• Total All-In Cost: $155k
• ARV (After Repair Value): Around $200k
• Refinance (via DSCR Loan): 7% interest, 30-year fixed

Refinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:

• HML: $60,000
• Interest/fees: $3,585
• Other costs: $1,800
• Total to pay back HML: $65,385

After the refi, I will have $84,615 left in cash.

Cash Flow & Expenses:

• Expected Rent Income: $1,700/month
• Property Management (PM): $126/month
• Insurance: $100/month
• Taxes: $126/month
• Mortgage: $1,043.75/month

Total Expenses: $1,395.75/month
So my monthly cash flow is about:
$1,700 - $1,395.75 = $304.25/month in cash flow.

Return on Investment:

• Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).
• Annual Cash Flow: $304.25 * 12 = $3,651
• Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%

I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new. I’m also using a 6% vacancy rate, which brings the net monthly cash flow to about $200 and a CoC return of 13.06%.

Summary:

• I’ve created around $50k in equity (difference between ARV of $200k and total investment of $155k).
• I’ve got about $10k or $18,385 left in the deal (factoring in closing costs).
• The cash flow is healthy, and the CoC return is strong, especially as a first-time investor.

Questions:

• Does anything look off or could I improve the numbers?
• Is my CoC return solid, or do I need to adjust anything based on my market?

Thanks in advance for any feedback!