All Forum Posts by: Helen Lin

Quote from @Drew Sygit:

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

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

 Thanks!

I guess I just don’t know what is the best long term investment strategy.  How do I figure out what works best for me? Do I want to have cash flow right now or do I want to keep this condo, eventually pay it off, and have rental income? Is that even a good Strategy? 

Thank you! I appreciate this!! Will get the book! 

Quote from @Jon K.:

If I'm interpreting your post correctly you're asking for advice as how to proceed and/or optimize your investments with a focus on cash flow.

For property #1, what is your actual cash flow? Your rent is $1850/month. How much are you holding for cap-ex, maintenance and vacancies? What is your mortgage, taxes and interest? Saying you made 5k last year doesn't tell us much because we don't know what expenses you had. Did you have to replace your water heater or roof for example. Also, is $1850 fair market rent? Can you get more? If you sell this place are you capable of replacing it with something that cash flows better with the proceeds?

Property #2, you have about 110k worth of equity. Can you tap into some of that through a sale, a cash-out refinance or a HELOC? Absolutely. Do you need to? Beats me.... you have 60k cash in the bank. I don't know your market but that's a decent chunk to work with and it doesn't seem like capital is a problem at the moment.

You laid out 6 different options but we don't know anything about your goals other than cash flow. I'm not convinced you have an analysis paralysis problem. I think you have a clearly defined goals problem.

Thanks Jon! Super helpful. With property 1, the rent off $1850 covers the monthly, mortgage, taxes, interest and HOA fees pretty evenly. I thought it broke even or even had a little loss but my accountant said I made $5k last year after all expenses which surprised me.

You are right about the clearly defined goals. I guess I just don’t know what first direction to go in.   Basically, I have 60K and wanted to invest in real estate and wasn’t sure the best way to go about it with my current situation.  I live in the greater Boston area so 1 bedrooms sell for over $300K haha.  I wasn’t sure if I should invest that money in a smaller property, or do something else.  

Hi there! 

I’ve been doing a ton of research, listening to podcasts, talking to a few folks, doing numbers, making spreadsheets, and I’m afraid I may be either too overwhelmed by options or over complicating things.   SEND HELP.  :-) I’m even willing to pay someone to literally consult me on my situation below and direct me in the right direction as I am finding all the options out there overwhelming.  

Short term goal: Cash Flow

Long term goal: Financial freedom  

Two properties: 

1.  Condo: Bought for 204K, currently could sell around $370K.  Currently renting at $1850 a month.  (My accountant says I’ve made $5k last year which seems like that’s a bad thing?)

2.  Townhouse: Bought for $260K, currently could sell around $370K (I live in this one) 

Got about $60K cash.

Rabbit hole #1: I originally went down the rabbit hole of thinking about selling my place to downsize into a smaller place to have a smaller mortgage.  After looking in-person at about 10 places, I realize my place was actually really awesome and everything so far on the market near me was ******.  

Rabbitt hole #2: Then went down another rabbit hole of taking my cash and investing into another smaller condo outside of the area into other towns, but I think my DTI is too high due to my self employment. Was talking to my original lender who has not been very responsive.

Rabbit hole #3: Starting research hard money lenders but still confused if this would apply to me or if I can get one.  

Rabbit hole #4: Reading the forums and talking to some folks, people seem to be against investing in condos due to HOA, so now that lead me to rabbit hole #5.

Rabbit hole #5: Researching selling my condo that I rent out for cash to put towards a bigger single family house.  Doing the math on that one and SEEMS like that COULD be better cash flow but since Ive never owned a home, but not sure about exterior or costs like snow/landscaping/garage costs since I’ve only owned condos.  

Rabbit hole #6: Looking at HELOC loans which just now is terrifying so now I feel like I'm in a decision paralysis. Hahaha.

Also, because both of my properties value went up, I can’t help but wonder if I should be taking advantage of that in some way to get more properties.  

HELP.  I am down WAY too many rabbit holes and need someone to simplify things for me.

I know I need to know my numbers, if there is a better calculator than my brain somewhere, please direct me :p

Thank you!

-Helen

Quote from @Mollie Hess:

Hi Helen! So glad you've joined BP, it's a great resource. I would suggest doing some basic research on your own about each city you are looking at such as market rents, average property price and taxes, insurance for those areas, population currently and potential, and job market. From there contact a realtor or two in your top pick(s) and try to gain some insight from them on the market and your options as an investor in those cities. Best of luck! 

 Thanks Mollie! 

Quote from @Joshua Messinger:

Hey @Helen Lin! 

I use the website AIRDNA currently to see an area's occupation rates and the average revenue that they generate. I will also search to see if an area is experiencing a large amount of economic growth, whether the job growth rate is increasing, there is commercial expansion, or big companies are moving in. You should also check to see if there are attractions/monuments that would pull people towards the area. 

That's a good start looking towards student housing! Especially in areas where there are larger schools there are students always looking for housing. As of right now, I'm actually trying to find a student tenant for a rental near Temple College, in Philadelphia. 

Feel free to reach out! I'd love to connect more, and help with anything you need! 

Best of wishes,

Josh

Hi Josh!

I will def check out the website! And thanks for the helpful advice.  So do you always work with one specific agent in regards to your investment properties?  How do most investors deal with agents in regards to places outside of your home area? 

Quote from @Anthony Thompson:

@Helen Lin congratulations on finding BP and taking the next step in your investing. I can only speak to Rhode Island but I’ve been successful investing in Providence.

Like anywhere, you have to be careful about the area/neighborhood and do your analysis/numbers; I’m sure that’s just as true in Manchester as it is in Providence.

While I’ve personally only bought in RI, I do know a few local investors here in RI who have recently bought places in NH to do AirBNB with, citing the much lower cost of purchase/entry as a primary reason. I can connect you with one of them if you like.

 Thank you so much! Connecting me with the local investors would be great! Thanks. 

Hi there,

Just discovered the Biggest Pockets podcast and forum.  Looking to learn how to become a first time investor. I currently own two homes- the one I live in and another condo I’ve been renting out for 4 years.  I am looking into investing my first property that I have never lived in.  I have about 50-60K for down payment.  Thoughts?

I am in the Greater Boston area and it’s out of my price range, so was looking at at NH and RI.  Any suggestions for areas? Is there a website or resource or who do I speak with to find out what’s a good rental property area? My first thought are places where colleges are but not sure if that’s just rookie thinking.

What do people think of Manchester, NH and Providence, RI? Also I read on the forums from a few years ago people mentioned Rochester, NH.  

Looking for any advice for a newbie! Still trying to figure out what the heck I’m doing.  Feel free to direct me to any episodes that I should listen to.

Thanks,

-Helen