All Forum Posts by: Emad Abdelrahman

I live in the Bay Area and I want to invest in Northern California. The only cities that seems to make sense is something like Santa Rosa or maybe something more North.  I am looking for recommendations for good real estate agents in that area.

I have been thinking of that for the past couple of weeks. I am struggling to find a way to acquire more money. However, i think real estate investing is all about the snowballing effect. So the first couple of deals are the hardest to fund, since you are probably going to put your own money in. 

The exponential growth of your portfolio if you reinvest your cashflow and save money to acquire houses every years is going to be really good. And if you do that for 3 or so years then the cashflow alone would be able to buy houses for your portfolio.  

This is how is see it:

For this example i am assuming 200 CF every month per house. Assuming houses  are in the 100k price range and that you can save up to 20K a year. 

By year four your portfolio would be buying you a house and onward every year, plus you are going to be building equity.

Year 1 : 1 SFH Annual CF: 2400 Saving: 20,000 - Buy one SFH (20% Down) Remaining: 2400

Year 2: 2 SFH (Annual CF: 4800 Saving: 20,000 + Balance From Last year: 2400) - Buy one SFH (20% Down- 20K) Remaining: 7200

Year 3: 3 SFH (Annual CF: 7200) Saving: 20,000 + Balance From Last year: 7200) - Buy one SFH (20% Down- 20K) Remaining: 14400

Year 4: 4 SFH (Annual CF: 14400) Saving: 20,000 + Balance From Last year: 14400) - Buy two SFH (20% Down- 20K) Remaining: 9800

I am new investor but this is my initial plan. I will try optimize it as i gain more experience since i am going to be building equity and there could be better ways of using it.

@Junior Soares  How did you choose the market you want to invest in if you are looking for cash flow? 

Yeah it has been crazy as of late. Redford and Dearborn Heights are crazy hot and too expensive. 

I am thinking Oak park, Berkeley/Beverly hills and i am not sure where else.

@ Chris Silva I am looking for SFRs and Condos for now. 

I would agree and I think the data is biggest issue. Since you are a fellow Michigander you can understand my thought process. 

According to the data, Detroit and its suburbs has been having a decline in population in the last 60 years. However, rents in these areas have been increasing dramatically. So i think its maybe due to micro neighborhoods.  Where do you get the data to determine that ?

I am curios to how the investors analyze rental markets as from how i see it there are little to no correlation between population growth and rental markets. A lot of cities here in Michigan seem like good rental markets. However, there is not enough data to show it . My biggest source to rely on when it comes to rental markets is people opinion rather than data, which is a great subjective indicator. What big indicators do you look for you are analyzing a rental market?