All Forum Posts by: Bjorik Mutize

I personally think you are thinking correctly. And kudo's for doing that being so new. A lot of your peers starting out will try and force buying somewhere where it doesn't work, then end up pushed out the game in a harsh manner because of failing to calculate alternative options that will set them up for long-term. 

If your backyard doesn't work, find another back yard. There are plenty of good markets out there, you just need a few good steps first to get yourself ready to invest out of state. It is worth it. You don't want to wait until San Fran becomes cheaper because who the hell knows when that is.

First is to get educated and create your mindset on how you will do it. BP offers good resources on a book i like for out of state investing https://www.biggerpockets.com/store/long-distance-real-estate-investing-ultimate Read books like these and follow actionable steps.

Next i'd start exploring strong markets with good economic indicators. Pick one, research it's sub-markets and where the city itself is going. What are you seeing that make it good long term vs San Fran? Better rent to price? Whats going on with the different asset class? Less competition? etc. Resources like datausa.io are good. You can even like, pick 10 markets you like then narrow it down to 5, then 3, to 1 you want to concentrate on. While doing market research you can narrow down your specific criteria on what type of, in what area, producing what type of return for you.

Start networking with those in the market you are targeting and get a feel of who can help you out. Perhaps visit the market and meet those people. These are sub-forums on here for city-specific that you can meet these people. Reach out.

Pure basic advice, but the main thing is getting educated and transforming your mindset to thinking you have the ability to invest anywhere you want to that works.

Feel free to PM me if you would like to talk further.

@Daniel Anshus speaker spot is still open! Still roughly 22 days out, more information to come soon on everything!

@Samuel Chua I’d reinvest that extra payment towards either future property improvements/expenditures/operations or towards your next investment.

I get the faster pay down but why. I’m assuming you have good terms on your debt, long-term? I’d save your capital.

@Jason McVey Typically $300-500 to start with and see what they say. Some offer a full months rent.

But yea if these are on MTM's id just go ahead and issue 30 day notices now. Again check with your state on what is what. And check the leases.

There's always a risk of damage from a tenant out of anger, but you don't want to wait too long especially waiting to flip units. More money to hold. Get their damage deposits at close.

@Jason McVey

Offer an incentive like cash for keys to go is probably your best bet.

Of course you can wait for the leases to expire and follow your state laws on notice not to renew. I’m assuming you know this already though and these leases still have some time.

Absolute best case is if these things are running on a month-to-month.

One to add to the above posts, i've heard alot of success with Appfolio. I think all of the one's named so far are the top, top recommendations.

Numbers look good assuming you are buying this all cash. Are you buying this all cash?

If you are asking on how to find those properties in your area, I'd begin with driving your area learning neighborhoods. Driving areas is very valuable when doing market research. Shop good beginning sites for example like redfin, realtor, zillow etc. Not the absolute greatest websites for the long-term but great tools to learn with. Build yourself a criteria of what exactly you are looking for in terms of price, area, duplex OR triplex, sqft, add-value capabilities etc, what are the rents.

When you have your criteria i recommend then reaching out to a professional agent to help assist your concentrated search through the MLS, while getting your financing in order of what price point you want to purchase at.

Not in the D.C area myself, but feel free to PM me with any questions.

@William C. I think whatever option you need to justify your pricing and ensure your numbers work.

If you are coming in 10k or more off do you have reasoning.

If I have the ability pay market, the deal checks out short-term and long-term, my numbers cash flow to my criteria, then I will pay market.

If I need to pay a little over asking, but the deal checks out short-term and long term, my numbers cash flow to my criteria, then so be it!

I love this discussion. It all comes down to having reason to why you are paying what.

@Chris Gawlik

Lol @ the title. Kudos to the plan.

Why pay off the 3 unit though?