All Forum Posts by: Antoine Martel

@Antoine Martel. I appreciate it Antoine. What areas have you been purchasing home in, I am currently looking at one in the University Heights area?

Hi Bigger Pockets Community,

I'm brand new to REI and have been consuming as much information as possible over the course of the last few months trying to determine what my strategy should be. Would love any helpful insights/constructive feedback to my proposed strategy below:

What I want to accomplish: At this point, my ideal is to get to 10 units as quickly as possible by purchasing duplexe(s) and four-unit properties that average at least at least $250/unit each month in cash flow right out of the gate, and then I would be looking to do several flips over a several year period to pay down the mortgages as quickly as possible (I realize a lot of investors say this is dumb because it makes me a legal target if I have equity in my properties and/or I'm not using any equity to its full potential. I'm not worried about those two aspects though).

How I plan to accomplish: In order to achieve this I'm looking out of state in markets like Cleveland, OH (open to suggestions for midwest and southeast) where I can find cheap properties that won't necessarily appreciate much, but will bring the cash flow I'm looking for.

Long Term: Once I get 10 units of this type paid down and am financially free, I figured I would then focus on looking more earnestly at properties that are in more expensive/higher appreciating markets that perhaps just bring more modest cash flow. 

Any experienced investors out there who can provide feedback around things to consider, why it is or is not a sound strategy, etc?

Hello Bigger Pockets Members!

I will get to it quick, my name is Doug and I am from Cleveland, Ohio (Possibly for a short time) and am looking to get into the Real Estate Investing. I am open to working to gain this knowledge. I am highly motivated, a grinder, and have a strong skill-set in investments (comes from my job, education background, and I am a Level II CFA candidate).  

My Real Estate Strategy is a buy and hold as of now. Once I acquire enough homes I am looking to implement the debt snowball plan to pay them down faster. Just to share my interests in what I am looking to learn they include: legal (should I form an LLC? and tenant agreements), property management, valuations, tenant acquisitions, marketing, financing, renovating homes, and how do I build a strong team.

Let me know if you have any recommendations or can help a new person out! 

 Most investors living in markets like the one you are living in invest in the turnkey markets. Tons of turnkey markets out there. Many are well represented by sellers & turnkey operators here on BiggerPockets. The most popular markets are

• Cleveland
• Toledo
• Memphis
• Birmingham
• KC
• Indy
• Detroit

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.