All Forum Posts by: Benjamin Aaker

Hi Dimitra and welcome to BP! Best of luck investing in Texas. Be sure to read up and educate yourself first. This'll give you a good footing when conversing with a mentor. I recommend Gary Keller's The Millionaire Real Estate Investor.

In general, you'll have more income from more units that are smaller, than fewer units that are larger. Have you checked your rental comps in the area? It looks like you will be converting into a 4 plex?
Be sure your municipality will allow it first. Add up the possible rents for all units, plus the cost of construction, then consider it. If not, you should spend your money on rehabbing the current units.

Depends on how much interaction you have needed with the tenant. If you really want to keep them, then discuss the rents and institute regular rent increases until you get to market rent. If that doesn't work out, bring it up to market with the understanding you will be searching for a new tenant.

Sounds like a great plan. I really like medium multifamily. There's economy of scale that you don't get with smaller properties. Bigger returns on these too, but that means bigger risk. Make sure you get educated quickly on how to purchase and own these apartments. Good luck!

Fixed HELOCs are going to be very hard to find. Are you sure that you need it to be fixed? I know that variable rates are kind of a bad word but many of them have limits on how high and fast they can rise. You might consider comparing HELOC offers locally and seeing what rate bumps you can stomach. You could also find the deal and tie up your partner's property as collateral to get around the down payment and not have a HELOC at all.

Hi Sean and thanks for asking the question. I read a bunch but only keep the good ones. Have a look at these guys:

I agree with @Josh Edwards: When you are starting out, you need to grow your investor list. Early on, this is all about networking locally. Start with a medium multifamily that you can take close watch over and begin getting experience in managing these deals. Alternatively, find a great deal and work with an experienced investor to gain experience. Later on, your main challenge will be in finding deals, so start getting knowledge in that area now.

Hi Dave,
Do you mean you reside outside the US or have you moved here? Either way, welcome to BP! I am a big fan of medium multifamily. In these properties, you'll need to obtain a commercial loan. You'll need a minimum of 20% down, but 25% if you are new. Citizenship might be a factor here, but I have no experience in that matter. Find a property manager and that person can help you with market rent analysis. Once you have the 6 unit you want under your belt you can quickly move up to that ~32 and then up. You should start now in looking for funding. When new, it will be partnerships, so expand your network of real estate investors here and through local meet-ups and conferences. Later, you will need to learn more about raising capital. I hope that path helps guide you.

Hi Justin and welcome. We are glad to have you here. Feel free to ask your questions - so many of us are happy to help out. Make sure you are reading and networking. Determine your criteria for investing and start evaluating deals - even if not ready to invest yet. Good luck.

Hello again Albert,
I'm glad to see you continuing your road to investing. Learn a lot before buying that first property. I recommend starting by investing locally. If you are looking to invest by research, then you must be looking elsewhere from your local area. Many people do well investing distant to where they live, but when you are starting out, your local knowledge is a huge help in determining location.
To answer your question more specifically, you should be looking at crime maps, discussing with your real estate agent (who's not allowed to tell you what is a 'good neighborhood' but can tell you where people are buying - hence moving, looking at the population growth of the area, and looking for any new employers coming to the town. If you can't go to the neighborhood personally (best), take a look at a street-view on your mapping software. This can tell you a lot.
Also, read Gary Keller's The Millionaire Real Estate Investor. This will help you in your individual property analysis.