All Forum Posts by: Benjamin Sulka

Success in investing in real estate starts with the framework, or call it "vision" you create for your future. You just joined and the year just started, so perfect timing for that.

When I started I decided that I want to develop a portfolio of residential real estate investment that generate cash flow for me, my family but also the next generation, i.e. my daughter.

If I were in your situation right now, especially because you said that "Skills like raising capital, sourcing/closing deals and underwriting/analysis are no stranger to me", I would probably focus on being the bank for people who want to own their own house/residence in markets that have a good ratio of price and rent level. The idea is to help people who currently pay a good amount of their income as rent and want to be homeowners but, similar to you have either a low credit score or other things in they past that make it hard to get financing from traditional lenders.

It's not the only but one of the few approaches that allow you to start without having to invest much. As you said, a few thousand Dollars can get you started.

I agree with all the folks who said not to start in San Diego or any location where the ratio of purchase price and income level (i.e. rent) is below 0.9%.

@Axel Meierhoefer, I love your "why". Just like you were, I'm also looking to invest in residential real estate to build wealth for my family and the next generation.

1 Vote

San Diego, California

Albert,

I'm not from your market but I'm also a 23 year old who is looking to use an FHA loan (maybe conventional not 100% sure yet) to purchase my first house hack this year too!

Would love to connect and talk real estate sometime. My DMs are always open.

2 Votes

Columbia, Maryland

Quote from @Alan Norton:

talk to neighbors. I got an off market deal a couple years ago based on what the next door neighbor told me. "my name is ___________ and I'm interested in buying the house next door/down the street, do you know anything about it/Who owns it/how long has it been vacant?

If they don't know, go to the next neighbor.

This is the footwork most are unwilling to do so your competition is relatively insignificant

PS: always leave a card with your finder's fee on the back

Alan,

Thank you for your comment! Super insightful.

I'd love to connect sometime if you're interested!

1 Vote

Cleveland, Ohio

Quote from @Glen Wiley:

We watch for signs that there are families with young children. Our best tenants are families with kids just entering school - they tend to stay for years to avoid disrupting kids schooling and like to see other families on the street.

Drive during working hours - are people milling about or are they at work? Drive at other times of day - is there shady nightlife?

Are people taking pride in their houses? Do they care for the lawns? You want a neighborhood where the neighbors are trying to sustain or improve.

We drive the same neighborhoods year after year and get a feel for the trend in each, are they improving or decaying. A few rough properties is no big deal but if you see a progression of decay then you might be on the downhill slope - better to buy where you are on an uphill slope of improvement in a neighborhood.

Great tips, Glen. Thanks so much!

0 Votes

Cleveland, Ohio

Antonio,

If your goal is to build wealth with real estate, I parrot the above advice. Buy a 2-4 unit with your FHA loan, house hack, and move out after the 12 month requirement is up.

I'm not sure how old you are but try to think about delayed gratification. Sure it would be nice to live in a new build home today but house hacking will benefit your future self.

If you allow yourself to handle a little bit of short term discomfort, you'll get the long term glory!

You got this!

1 Vote

Austin, Texas

What's up, BiggerPockets?

I've recently started Driving for Dollars in my local market (Cleveland, OH). I go park the car near some streets that I want to walk, walk around with my dog and write down addresses of houses that stick out to me (not taken care of, long grass, overstuffed mailboxes, general disrepair, etc.)

What other things do you look for when walking neighborhoods and looking at properties?

I'm also trying to figure out how to speed up the process. I wrote about 10 unique addresses today and it took me over an hour to research the properties. I put all the addresses in a spreadsheet and then surf the county website to look at the owners info, tax data, etc. I also include notes about things that stuck out about the property.

Am I doing my due diligence? Or should this be a quicker process? Appreciate any advice on how to systematize this better.

-Ben, aspiring rental property investor

3 Votes

Cleveland, Ohio

All Forum Posts by: Benjamin Sulka

Benjamin Sulka has started 53 posts and replied 809 times.

Post: HELP! Contractor Woes on my first investment property!

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Post: Bad credit, minimal cash and starting over in life . . . Is there hope for me here?

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Post: Driving for Dollars

Post: Driving for Dollars

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Post: Driving for Dollars