All Forum Posts by: Forest Wu

Cash flow is a poor metric by itself. Pick better neighborhoods, consider a small negative cash flow a forced savings account or just leverage less so you are break even or positive - long term you'll be way better off finacially. Run it througha BP calculater, you'll see.

I know that is not what anyone wants to hear, but REI has returned back to normal - the unicorn years after 2008 have finally dried up. It is still a great investment, but the cashflow for zero down magic is gone

Definitely this! Finding better neighborhoods and maybe putting a slightly larger downpayment just to breakeven is a good strategy to consider. Cashflow is just a bonus - not necessarily a requirement anymore

1 Vote

Quote from @Samuel Diouf:

I am finding plenty of off-market deals in Columbus, OH. I think Columbus is a great option to consider. Multiple, billion dollar companies are investing into our area, such as Intel, Google, and Amazon, due to reasons such as lower costs on land, great tax abatement opportunities, and an attractive cost of living for employees.

The cash-flow won't be as high as Cincinnati or Cleveland but in return you will see those high gains in appreciation.

Nice! Which neighborhoods do you like in Columbus? Would love to try and snag an off-market deal over there.

1 Vote

Quote from @Benjamin Aaker:

Just consider also that while you don't want cash flow to be negative. Equity build can still be done. It might be worth it for some investors to maximize equity. High cash flow areas usually mean C markets (as you say in your post). These require a larger investment in time or money. I always recommend to invest near your home. Failing that, my vote is Ohio and Indiana. Midwest is often a good way to go.

Definitely agree! I've liked the Ohio area. If I can breakeven after all expenses (e.g., PITI, capex budgeting etc.), I'd consider it a win. I prefer at least B neighborhoods.

1 Vote

Quote from @Carlos Ptriawan:

Quote from @Forest Wu:

Latest inflation rate report shows that it's still too high. I doubt rates will be dropped that quickly or that much this year unfortunately.

Look If milk is $3.0/gal or $2.8999/gal it doesn't really make differences.

Fed has failed, even if the inflation goes down to 1%, because the 1% is calculated by YoY.

Now it's about, do you want the patient (company) to die or not with Fed rate of 5%. It's as simple as that.

inflation number is meaningless these days

Um, I'm not sure what you mean. I would not consider the inflation number meaningless since unfortunately it has an outsized impact on REI. Interest rate (based on inflation perception or reality) changes affects everything (e.g., mortgage rates, insurance rates because of bond positions etc.)

0 Votes

Latest inflation rate report shows that it's still too high. I doubt rates will be dropped that quickly or that much this year unfortunately.

0 Votes

Hi folks, hope that you're doing well. Kicking off a discussion to see if people have ideas of where to invest in 2024. Because of high interest rates (as well as soaring insurance premiums), I think cashflow is near impossible to achieve for long-term rentals. Best strategy is to look into rougher neighborhoods, get creative with financing or find off-markets.

That being said, I still find these cities interesting:

Detroit, Michigan

Charlotte, North Carolina

Cleveland, Ohio
Indianapolis, Indiana

Birmingham, Alabama

Any other ideas? Let's set some goals and crush it!

5 Votes

@James Wise - I'm guessing that neither one of us have heard any updates on good property managers or handymen lol

0 Votes

Is there a good way to connect with wholesalers in the Colorado area? I'm specifically looking around the Boulder/Denver area around US36. Markets like Broomfield, Lafayette, Westminster, Erie, Thornton etc.

Happy to cash-buy but would also prefer doing something creative (e.g., subject-to, seller financing)

0 Votes

@Remington Lyman Investor interested in Columbus Ohio but need to find the right handyman team

0 Votes

Columbus, Ohio

I'd love to connect as well! Investor interested in Columbus Ohio but need to find the right property manager and handyman team

2 Votes

Columbus, Ohio

All Forum Posts by: Forest Wu

Forest Wu has started 6 posts and replied 71 times.

Post: Best Cities for 2024? Strategies?

Post: Best Cities for 2024? Strategies?

Post: Best Cities for 2024? Strategies?

Post: Don't Get Comfortable - Mortgage Rates Could Very Well Rise in 2024

Post: Don't Get Comfortable - Mortgage Rates Could Very Well Rise in 2024

Post: Best Cities for 2024? Strategies?

Post: Property Manager and Handyman in Columbus, Ohio

Post: Wholesaler(s) in Colorado

Post: Looking for reliable contractors/handyman in Columbus Ohio

Post: Networking In Columbus, Ohio