All Forum Posts by: Jeff Brys

Thanks everyone for your responses.

@Ali BooneIn regards to out of state investing, how do you even begin researching other markets for this? I mentioned Vegas because I know people there that are having success and it's a city I visit all the time. But these other markets in the South and Midwest I know literally nothing about. Would they not be the first to go belly up if we have another recession? This is what worries me the most.

@Sean Autry I feel like the only areas that do cash-flow are these C-class 'hoods you mention. I don't like the idea of sub-par tenants, especially with my first property. I was thinking maybe Riverside or Redlands near the Universities. With some nice upgrades, I would hope to target staff, grad students, or even the more responsible undergrads.

I also understand the STRs are more work intensive but the returns can be much higher. The other bonus is low cost vacation options for the fam. I considered local destinations like Big Bear and Mammoth, but it seems too seasonal and I feel like I'd probably have to pay the mortgage out of pocket for half the year.

Hi BP!

I started listening to the podcast a few weeks ago and I have to say I'm hooked. The more I'm learning about REI, the more I think it's a good idea. But, I'm having trouble developing a strategy that makes the most sense to me. I think I'm interested in MFR as the rate of return seems much better. But, the MFR I can afford in LA are either in a warzone, or will require me to dump all my cash into it just to close the deal.

Here's some strategies I'm considering:

House hack a MFR in an up and coming neighborhood in NELA (Glassell Park, Highland Park, Cypress, Echo Park, etc) at a negative cash-flow (but still cost less than equivalent rent). Appreciation has been going bananas here the last few years, plus I've lived in these neighborhoods before and I like the vibe.

Invest in STR or Vacation Rentals. I was looking into Las Vegas as I have a friend who moved to LA and is successfully renting his 4bd home there. He has all kinds of contacts I could lean on to get me started and we could help each other out w/ management. However, new regulations look like a headache and it could be sitting vacant while I wait for approval from the city. I could possibly buy a condo all cash here so that may minimize vacancy expenses.

Purchase a MFR somewhere in the Inland Empire (looking at Corona or Riverside) or maybe even SFR or two to rent out. Only an hour and change drive to check on the place but may be too remote to manage ourselves. Paying a management company may eat up too much of the cash flow to make it worthwhile.

Invest out state. Maybe somewhere in the South or Midwest? Numbers seem attractive, but I've lived in So-cal all of my life so I really know nothing of other markets. Would definitely need a great remote ground team. Upside is I could likely afford several cash-flowing properties with the right financing. 

Looking for any and all input about the above. Also open to hearing about anything else I haven't yet considered.