All Forum Posts by: Elias Osborne

Hey Austin, I'm in real estate and can essentially give my knowledge on the field I'm in. With the subject being on the future. I would split that $200k into at least four separate amounts of $50k each. I would get with a hard money lender with good rates, use the $50k for down payment (save the rest for emergency funds), and find four properties in a good market; at least 2 MFH. They may need some rehab, but the lender would pay for that. Fix those properties up, throw tenants in there, cash out refinance and pay the lenders back. Now you have four properties that have cash flow set for the future, and depending on your numbers, possibly made income from the cash out refi.

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Quote from @Vincent Samaha:

Hello. First post. I've been listening to the podcast/videos. I've recently begun realizing that my 401k will very likely be insufficient for retirement (I'm 37), so I'm searching for alternative investments. Instead of thinking of my later years as "retirement", it's better to call them the "passive income years", and real estate seems to fit perfectly within that idea.

Since our family is regularly on the paying side of STRs through VRBO, it's something we're familiar with, and my wife and I have jokingly talked about buying a cabin in the Smoky Mountains or a beach house on Dauphin for personal use and rental income.

But I don't want to joke anymore. If we just play it safe and let someone else plan for our "passive income years", we won't be having passive income.

So where should I start with STRs? Can I annualize the estimated income from a site like AirDNA and plug the numbers into a normal rental calculator to analyze the investment? What metrics should I prioritize?

Thanks for your help

Hey Vincent,

I would proceed with caution. The STR market is beginning to get oversaturated in some areas. Make sure this is something you have planned out with setbacks known and accepted. Identify if you want to fully purchase a property or to use rental arbitrage. If purchasing, are you getting a turnkey property or a fixer that needs remodeling (losing potential income) plus furnishing.

Plan out paying a property management team into the expenses. AirDNA is a good metric to use. If you want to keep it a little simpler, just search the areas that you are targeting on VRBO/AirBNB, and check their nightly rates and break profit down by occupancy rate.

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Quote from @Alon A.:

Hey !

Anyone can share with me research about all neighborhoods on Columbus ?

something like that:

https://www.biggerpockets.com/...

there is a thread like that usually for each city ?

Hey Alon,

I don't think there is a map on Columbus here on BP but I can give you some information about the neighborhoods here and some hot spots. Lets connect.

2 Votes

Columbus, Ohio

Quote from @Paulina L.:

Hi all, I am new to investing. I'd like to get started this year, but a few questions on what may be the best choice for first RE as a way to bridge to more investments after. Would love other's advice on best first investment with ideal scenarios below:

Choice 1: Out of state investment (likely has to be anywhere between $75k-110k in purchase price), likely conventional loan, 20-25% down. I'm finding some ideal properties (I'm finding good market with decent cashflow OR bad market decent cashflow - however, as tempting as both are, I'm assuming either way to stay away from the latter. However, the former has been scarce).

Choice 2: Multi-family property (in CA), conventional loan/FHA. I would like it to be a buy/hold with cashflow - my issue with this is that most of the locations I am finding seem to be in great locations (high pop growth, high rent %s) but using the BP Analysis calculator the cashflow is either low or negative, is there any idea why that may be the case?

Q: Would like to hear advice on the above choices for first RE investment that would help with future investments (as well as any advice/answers on the questions in each!)

Hey Paulina, a couple of things.

I would recommend you start investing in an area close to you just so you can manage the contractors, rehab, etc. It can be very difficult as a rookie to manage out of state properties with rehabs. I can understand the eagerness to jump into other states due to price point though. It's harder to get feet on the ground that you can trust when you're not physically there to oversee the process.

Also when it comes to funding: you can get a conventional loan and put 20-25% down, but try researching hard money as well. You may be able to leverage your money better and use the leftover you would've used with a conventional loan for emergency funds on the rehab.

Remember if you choose the multifamily route, in order to use an FHA loan, you have to live in it for a minimum of 1 year. A great situation if you do not mind house hacking.

2 Votes

Quote from @Eugene Carter:

Hi, My name is Eugene C. I’ve been looking into wholesaling fir a while now and I’m ready to jump in. I’ve been looking at Ohio’s market but, I live in TN. Can anyone offer tips or words of wisdom about doing out of state deals? Where and how to find cash buyer and investors?

Hey Eugene,

I would recommend starting where you stay at first (TN). Then once you get a rhythm and skills down pact on finding those properties, venture out to other areas. You have to make sure you know the markets, and how to reach out to those distressed sellers though.

As for finding buyers, you can join various Facebook groups but be cautionary when trusting just any person claiming to be an investor. Have your set criteria for a qualified investor, and play off of that.

1 Vote

Cleveland, Ohio

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Quote from @Damian Callaghan:

I'm new to investment but spending a lot of time on market and deal analysis. I am ready to buy but so far - even in markets where you can still pick a home up in an appreciating market for $250K - I am struggling to see how they cashflow with 25% investor down payment and interest rates up there near 7%. It frustrating - Im ready to go but certain I am missing something. I use a 0.86% (rather than 1) for quick deal analysis but do detailed analysis as well. On a $250k house you are looking at $62,500K down (which isn't cheap) - then somewhere around $1500 a month for repayment and taxes (doesn't take in to account mgmt, vacancy, capital) - and these markets I am looking at only getting $14-1600 a month in rent..

What am I missing? Help from this network welcomed!!

Note - I wanted to invest locally but even worse on Gulf Coast so been looking at NC, Jacksonville amongst other places

Hey Damian, I think there are a couple of strategies that can be used, especially if you have 25% to put down. I'm located in Columbus, Ohio. Our market is appreciating and has cash flow. But your first step should be to look at off market deals. This can save massive amounts of capital without having to deal with the MLS and over zealous listing prices. From there you can leverage your working capital with hard money lenders rather than conventional lending. With the tech boom going on in the city, the rental market has been on the rise. This can help you choose what your investing strategy could be, BRRR would be great in order to acquire multiple properties in and be cautious in spending.

2 Votes

Saint Petersburg, Florida

Quote from @Anton Tikhomirov:

Hi All, this is my first post here, hoping it’s in line with the rules.

Like a lot of people, I’m looking to buy my first property in the next 3 months or so. I want to focus on growth right now, so I am hoping to find properties that are in areas with good demographic trends. My goal is to have them cash flow positively, but am not hyper-focused on cash flow beyond that (I.e. I don’t need MASSIVE cash flow). The goal would be something that is a mix between cash flow and appreciation.

I live in MA and don’t want to invest in Fall River/New Bedford so I’m looking out of state. I’ve looked at markets like Indy and Columbus (which seem very good) and then also at Kansas City, Cincinnati, and Jacksonville (though downscale FL particularly makes me nervous). The reason I am posting is to ask whether there are any particular smaller markets or sub markets I should be looking at as well? I’m particularly looking at the Midwest if anyone has any tips, but I’ve also heard there’s great stuff in the sunbelt around AZ in the Phoenix suburbs. Does anyone have any tips on where I should check out?

Budget is about $200-250k after leverage (so about $50K down + transaction costs). Hoping not to do more than $20k of rehab.

Thanks!

Hey Anton, I'm in the Columbus market as an investment RE agent. We get off market deals which saves the investor money and allows them to acquire the properties and begin work ASAP. If you are looking for cash flow and appreciation, Columbus is your market for sure with the large tech companies making the city their home and buying land to build their plants and factories. Let me know if you have any questions when it comes to the Columbus market.

1 Vote

Quote from @Silo Mansaray:

I am a rookie, live in Columbus Ohio and I'm planning to start with a short term rental in Tennessee, vacation areas. I'm looking at properties now, I need some ideas on how to get started with it. Please advice.

Also looking at properties in Ohio, will like to connect with an investor or agent to assist with my first operation, I'm nervous.

Hey Silo, I'm an investment real estate agent here in Columbus and I get deals (80% off market) that are investor friendly and know the process. Connect with me sometime and I can show you my process and how I can be able to aid you business.

2 Votes

Quote from @Rebecca Tingley:

Newbie first post alert…I’ve been in Multifamily Property Management for over 20 years. As any great Property Manager (if I do say so myself), with a proven track record of making their company successful, I have to ask…”WHY AM I NOT DOING THIS FOR MYSELF?” So I am reaching out to this group for anyone interested in trading knowledge. I want to get my feet wet in my own investment. I don’t feel I have enough expertise to just dive in. Please drop your name in comments if you will let me pick your brain, or share your advice on how you got started, or just share any advise you are willing to give to a newbie. I’ll be happy share my Ohio rental expertise with you!

Hey Rebecca, I think you are in a great spot for a beginner in terms of price point and proximity to the property. I'm an investment real estate agent in Columbus. Price points are higher here but deals can be found. I would recommend finding your first property in Dayton due to the price difference of Columbus, but for longer term plays, Columbus is booming. Feel free to connect and ask questions.

1 Vote

Dayton, Ohio

All Forum Posts by: Elias Osborne

Elias Osborne has started 0 posts and replied 22 times.

Post: What would you do with $200k?

Post: Rookie Investor - STR looks appealing

Post: Research on Columbus Ohio

Post: Deciding on first RE investment

Post: WHAT IS THE WHOLESALING MARKET IN OHIO

Post: New Western

Post: How to find Cash flowing properties - What am I missing?

Post: Looking for leads on lesser known markets or sub markets for decent CF/appreciation

Post: Short term rentals

Post: Looking for Investment Advise n