All Forum Posts by: Harrison Chow

Quote from @Aruna Abdool:

Hello BP'ers! Is anyone cash-flowing or succeeding in the Section-8 market, and if so, what state/county are you investing in? I'm researching multiple strategies and would like some feedback on this one. I plan on investing in a landlord-friendly state and am looking into MTR, LTR, and now Sec-8. 

Hey Aruna! Many of my investors are cash-flowing and succeeding in the Section-8 market, especially in areas with high demand for affordable housing. Let me know if you need more insight re this investment strategy!

Quote from @Joe S.:

 I have a property that I am looking to buy in Ohio that I am considering doing a lease option as my exit strategy, is there anything that I need to be aware of to be compliant for Ohio? 

Hey Joe! It's recommended to work with a real estate attorney to draft a lease option agreement that meets the legal requirements in Ohio as it must contain very specific terms and conditions.

Additionally, as the seller, you need to disclose any known defects or issues with the property to the buyer. Failure to disclose could result in legal liability down the road.

It's also essential to consider the buyer's ability to exercise the option and obtain financing to purchase the property. As an investor, you may want to perform a credit check and verify the buyer's income and employment before entering into a lease option agreement.

Finally, it's essential to understand the tax implications of lease options. In Ohio, the buyer is responsible for paying property taxes and insurance during the lease term. However, you should consult with a tax professional to understand any potential tax liabilities associated with a lease option.

Hope this helps!

Quote from @Joshua Moses:

Hello everyone, I want to get started in a career of investing in real estate and I'm most interested in the Buy and Hold Strategy. Any advice and tips are greatly appreciated.

Hey Joshua! It's great to hear that you're interested in real estate investing! As with any new endeavor, it's important to take small steps before tackling bigger challenges, and real estate is no exception. Starting with a small investment and scaling up as you gain more experience is a wise approach. I suggest targeting properties that require minimal repairs or only cosmetic upgrades for your first investment. 

In identifying a market for investment, I think the first point to consider is your budget. Would your budget allow you to invest locally or would you need to look out of state? Next would be to determine what you're looking for in an investment: appreciation, cash flow or a mix of both.

In searching for properties, connect with investor friendly RE agents in the area to gain insight into the local market and find potential deals. They would also be able to help in identifying profitable neighborhoods to invest in.

It's also important to have a solid financial plan in place, including determining your budget for purchasing properties and factoring in ongoing expenses such as maintenance, property management fees, and insurance.

Hope this helps and let me know if you'd be willing to explore the Midwest particularly Ohio. Best of luck in your real estate journey!

Quote from @Josephine Farai Tanis:

Im 25 and my husband and I just graduated college and have full time jobs. I'm only 7 months into my job and really am realizing that it's not for me. Thankfully, I can listen to podcasts and music while I work... and I've become obsessed with listening to everything I can about real estate! AND I WANT IN! I want to have rentals that will cover the costs, allow for flexibility and freedom and also generate real wealth. The big thing for us though is how and when do we start? We also don't have any money to put down, so taking out a loan would be our only option at this point in life. Lastly, we're expecting! Which is so exciting, but makes all of this feel a lot harder when a baby is in the mix! What are your thoughts or advise? I'm all ears! 

Hi Josephine! Congratulations on your growing family and your interest in real estate investing! 

First and foremost, it's important to take the time to educate yourself about real estate investing and the different strategies available. Listening to podcasts and reading books is a great start, but it's also important to network with other investors, attend local real estate events, and seek out professional advice when needed.

When it comes to financing your first investment property, there are a few options to consider. Taking out a loan is one option, but you'll want to make sure you have a solid plan in place for generating rental income to cover the loan payments and other expenses. You may want to start small (like househacking to cover some expenses or to target properties that are relatively turnkey or just needs cosmetic upgrades) and focus on building a portfolio of rental properties over time, rather than jumping into a large investment right away. Another option is to partner with other investors or consider a real estate crowdfunding platform, which could provide additional funding and resources.

Given that you're expecting, it's also important to factor in the additional expenses and responsibilities that come with having a child. 

Ultimately, the key is to be patient, persistent, and realistic in your expectations. Real estate investing can be a lucrative and fulfilling career path, but it also requires hard work, dedication, and a willingness to learn and adapt along the way.

Hope this helps and let me know if you'd be willing to explore the Midwest particularly Ohio. Best of luck in your real estate journey!

Quote from @Justyn Keane:

Hello my name is Justyn I am new to real estate and very interesting and motivated to get involved , I have about 100k in cash looking for ideas on how to get started to find and fund a deal ! 

Hi Justyn! It's great to hear your interest in real estate investing with some cash on hand to get started!

One approach to finding a deal is to work with a real estate agent who has experience in investment properties and can help you identify potential deals that meet your investment criteria. They can also help you negotiate and structure the deal to ensure that you're getting the best possible terms.

Another option is to attend local real estate networking events and meet other investors, lenders, and professionals who may be able to provide leads or insights into potential deals. Building relationships with other investors and industry professionals can be a valuable resource as you get started in real estate investing.

In terms of funding a deal, there are several options to consider as well. If you have good credit and income, you may be able to qualify for a traditional mortgage to finance the purchase of a property. Alternatively, you could consider partnering with another investor who has experience and can bring additional capital or resources to the deal. There are also hard money lenders and private lenders who specialize in providing financing for real estate investments. These types of lenders typically have higher interest rates and fees than traditional lenders but can provide more flexible terms and faster funding.

Hope this helps and let me know if you'd be willing to explore the Midwest particularly Ohio. Best of luck in your real estate journey!

Quote from @Kenny Hanuska:

Good evening all, new to bigger pockets. Can't get enough of the podcasts and books. Plan to start investing in Single family homes. BRRR, flip. Or rental. Unsure if foreclosures or mls research is the best place to start running numbers and taking the action of making offers. I'm very handy and plan to do work myself for my first few acquisitions. But reasonable enough to know when it's time to hire that out.

Hey Kenny! Searching for properties through the MLS is indeed a great way to get a sense of what's available on the market and start running numbers on potential deals. However, keep in mind that the MLS can be competitive and may not always have the best deals available. Another approach you mentioned is looking for foreclosures or distressed properties. These properties can often be purchased at a discount, but they may require more work to get them up to code and rentable.

Regardless of the approach you choose, it's important to run the numbers carefully and make sure that any property you're considering has the potential to be profitable. This means factoring in all expenses, including repairs and maintenance, property management fees, and potential vacancies.

Since you mentioned that you're handy and plan to do some of the work yourself, this can be a great way to save money on repairs and renovations. I'm glad to hear you also recognize the importance of knowing when it's time to hire a professional. Safety should always be a top priority, and certain jobs may require specialized skills or licensing.

As an investor friendly agent, I can help you navigate the market and find properties that fit your investment goals. I can also provide referrals to contractors, property managers, and other professionals who can help you along the way. With the right team in place, you can start building your portfolio of profitable single-family homes. Would be happy to connect!

Quote from @Justin Pumpr:

Hey all,

I'm looking for some advice on which type of lender to use and then looking for referrals for that type of lender in the Columbus area. Some background:

I own a few properties in Columbus and Dayton, OH (a mix of SFR and small MFRs) all of which are financed using traditional Fannie/Freddie lenders. I'm getting close to my 10 loan limit and would also like to work with someone who is more investor friendly and hopefully is less hassle and still has good rates. I currently have a duplex that I'm BRRR-ing and looking to refi in a couple of months. I also want to buy another 20+ units this year, ideally as one building, but it may be split over a couple depending on the deal. I'm looking to cash-out-refi on these too expecting to only get 70% LTV (although if I could get 75% LTV that'd be great). All my properties are cash flow positive and my FICO fluctuates between the high 700s and low 800s.

I'd like to find a lender who can facilitate all my new properties. So my question is, when considering these types of lenders, Commercial, Portfolio, DSCR, or Private which type of lender would be best suited for scaling my portfolio?

Cheers,
Justin

Hey Justin! Based on your investment goals, it may be beneficial to work with a portfolio lender or a private lender who can offer more flexibility in lending criteria and may be able to offer lower rates. I may be able to provide you with referrals for lenders in the Columbus area who specialize in working with investors and have experience in your specific investment strategy. We can also review your investment goals and help you determine which type of lender is best suited for your needs. Let's connect!

Quote from @Harrison Chow:

Quote from @Michael Totino:

I am located in Long Island New York where everything is expensive and I am debating the pro's and cons of house hacking a 2 family house or just continuing to rent and purchase out of state rentals. Any input is greatly appreciated!

Hey Michael! Both options have their benefits and drawbacks, so it's important to consider your financial goals, investment preferences, and comfort level with managing rental properties. Below are pros and cons you'd have to consider: 

1. House Hacking a 2-Family House Pros:

• Live in one unit and rent out the other to generate rental income
• Have greater control over the property
• Enjoy potential tax benefits

     Cons:

• May require a larger initial investment
• Have to manage tenants and handle maintenance and repairs
• Potential for vacancies, which could impact cash flow

1. Investing in Out-of-State Rentals Pros:

• May be able to find properties with better cash flow and returns
• Diversify investment portfolio across multiple markets
• Can hire property management companies to handle the day-to-day operations

     Cons:

• Less control over the property and the rental market in another state
• May require more due diligence and research to find the right properties and markets to invest in

Hope this helps and let me know if you'd be willing to explore the Midwest particularly Ohio. Would love to help out with managing the cons that come with OOS investing. Best of luck on your investing journey!

Quote from @Michael Totino:

I am located in Long Island New York where everything is expensive and I am debating the pro's and cons of house hacking a 2 family house or just continuing to rent and purchase out of state rentals. Any input is greatly appreciated!

Hey Michael! Both options have their benefits and drawbacks, so it's important to consider your financial goals, investment preferences, and comfort level with managing rental properties. Below are pros and cons you'd have to consider: 

1. House Hacking a 2-Family House

Pros:

• Live in one unit and rent out the other to generate rental income
• Have greater control over the property
• Enjoy potential tax benefits

Cons:

• May require a larger initial investment
• Have to manage tenants and handle maintenance and repairs
• Potential for vacancies, which could impact cash flow

1. Investing in Out-of-State Rentals

Pros:

• May be able to find properties with better cash flow and returns
• Diversify investment portfolio across multiple markets
• Can hire property management companies to handle the day-to-day operations

Cons:

• Less control over the property and the rental market in another state
• May require more due diligence and research to find the right properties and markets to invest in

Hope this helps and let me know if you'd be willing to explore the Midwest particularly Ohio. Would love to help out with managing the cons that come with OOS investing. Best of luck on your investing journey!

Quote from @Lewis Jensen:

Hey everyone, I'm trying to choose which market to invest in (I'll be doing long distance investing) and I've narrowed it down to a few options I think would be a good choice. I've got around $40,000 to use for a down payment. Just hoping for some insight and recommendations. Thanks! Here's what I've got.

Indianapolis, IN

Des Moines, IA

Albuquerque, NM

Tulsa, OK

Louisville, KY

Greensboro, NC.

Hey Lewis! When searching for an OOS market, I suggest seeking markets that experience significant population growth and offer abundant job opportunities. Have you considered trying your luck in the Ohio market? We have Columbus, Cincinnati, Dayton and Cleveland. I personally focus my investments in Columbus. The city is projected to continue thriving and attracting numerous major companies, resulting in the creation of thousands of job opportunities in the coming months and years. Population is increasing by 0.75% annually and there is a 3.58% yearly increase in employment growth. Additionally, rent prices in Columbus have increased by 6% each year. I have worked with several OOS investors and have a have a network of property managers, general contractors, lenders etc. that I would highly recommend. If you're interested, please let me know how I can assist you further!