Quote from @Jeremy Taggart:
Quote from @Ying Tang:
Hello everyone,
I’m excited to join BiggerPockets as a new investor and realtor based in Phoenix, Arizona. Currently, I own two single-family homes:
1. My primary residence, purchased in 2018 for $550K, is now valued at approximately $900K.
2. A recently renovated property bought in 2023 for $440K with 25% down is managed by a friend’s company. They rent out individual rooms, enabling us to charge slightly above market rates. Despite higher maintenance costs and elevated interest rates, the property generates enough income to cover the mortgage plus an extra $200 in positive cash flow.
Each year, my husband and I save between $80K and $200K for further investments, depending on his annual performance. I also recently obtained my Arizona real estate salesperson license to reduce transaction costs. While I'm actively seeking BRRRR opportunities in Phoenix, generating positive cash flow has proven challenging under current conditions, and price appreciation appears to have slowed.
In addition, I’m exploring investment opportunities out of state, though navigating unfamiliar markets is proving to be even more challenging. I welcome any suggestions, advice, or insights you might have regarding investments both locally and beyond. Thanks in advance for your input!
I always tend to prefer local if you can since you have an unfair advantage especially if you are an agent working in the market. You know the market like the back of your hand after you work in it long enough and opportunities will naturally pop up. If your market is too expensive though for your goals or you want to diversify I can speak on out of state since that's primarily what my team does here in the Pittsburgh area.
The main thing is making sure you are working with the right people. This is arguably more important than the market or property type you pick. I have seen too many get burned working with people that aren't honest and are just trying to make a quick buck.
Also once you find people you can trust and know the market inside and out listen to their advice instead of straying from it. If you do well then the team you are working with will also do well because it will be a long term win win relationship.
Also having realistic expectations. If you are buying say an early 1900s build multi family in a lower income C-D class neighborhood and relying on third party property management from across the country it isn't just going to be mailbox money, despite what some may think. Especially the first year or two after purchasing the property until the kinks get worked out and the property is stabilized/running smoothly.
I agree with what Jeremy said, however, let me make a few caveats here.
First, I've seen a lot of investors get their license to save money but are only doing their own transactions and don't take the time to learn what they are doing properly so they end up messing up paperwork, missing deadlines (which has caused them to loose handmoney) and make offers that were not financially sound. Just having a license doesn't mean you know what you are doing. You need to really commit to learning the market like a full time agent would. At least for the area and niche you are working. Markets can change pretty quickly and without knowing what is happening in real time you can make choices that aren't as smart as if you were more in tune.
I will 100% agree with making sure you find people you know and trust in the market you are in. For me as an investor and agent that is more then just a great property management company and contractor, that includes speciality contracts (hvac, electricians, plumbers etc) and also other great agents (@Jeremy Taggart is one I absolutely know and trust for example!) When you are looking for good deals, sometimes these agents will have something off market they can share your way and when you are stuck and need a second opinion or value or why something isn't selling/renting you can always reach out for another pair of eyes!
One last thought, no matter how many times you run the numbers or how bulletproof you try to make your investment strategy, know that real estate investing isn't a guaranteed investment solution. 1 bad tenant, 1 market shift, 1 change can take out your profit...but if you troubleshoot your problems, hold tight, and play the long game, in the end, you will end up a winner!
