All Forum Posts by: Jeff Parkin

One of the reasons I've looked at the Baltimore City area is exactly what you said, "high risk, high reward." That said, I don't currently have anyone on the ground there, but if I were to move forward I plan to spend some time there (maybe a month or more), learning the city, and establishing a team to be sure any move I make is prudent. I still have a lot of research and learning to do, but if that becomes the case I'd love to talk to you further! 

The 30k down on a 110k property sounds great in theory, but unfortunately due to my current employment (1099'd independent contractor) and poor credit (had to close a small business a few years ago as a result of the recession) I don't qualify for traditional financing at this time. So I either have to be a cash buyer or get creative with financing, but the later will drastically cut into cash flow! For this reason, I've gravitated toward the sub 30k market. If you were in my shoes, what would you do?  

Thanks, Gonz! Yeah I'm definitely trying to learn as much as I can before making my first move! The problem I'm having is that due to my credit and employment as a 1099'd independent contractor, I'm limited to the cash I have on hand if I want to begin my portfolio as a buy & hold investor. That is, unless I wait until I have more capital. As suggested by other members, I am researching notes and other avenues as well. Any suggestions?

Thank you, Kathy! I initially did some research in Austin because I have a friend there but I didn't see it as a viable option at my current price point. I'll admit that I don't know much about other markets in Texas but am not opposed to the idea of doing deals there. At this point I'm still in the learning phase, but I would like to talk to you in the near future. Thanks for reaching out, I'll be in touch!

@Mark Brogan Thanks, Mark! I'm loving this site as a resource! Finally got my shipment of books from Amazon and I'm almost done with Brandon's book and have several others I'm excited to read. And the podcasts have become my new favorite way to spend time in the car! Thanks for the vote of confidence, I really appreciate it!

@Anthony Davis Thanks for all the info, Anthony! I'm definitely in the learning phase and soaking up as much information as I can. Much appreciated! You mentioned North Carolina, and that's a market I haven't looked into too much but I do have some family there so I'll keep that in mind. Do you have any suggestions as to what cities would be good to look at there? Thanks again!

@Rhett Tullis Thanks for all your comments both to me as well as in response to others who have responded as well! I haven't been scared away from sub 30k properties just yet. I'd love to talk to you more regarding both property mgmt. as well as your insights for how someone like me could make the out of state REI business model work.

@Jay Hinrichs You bring up some very valid points, and I did do some reading up on non-performing notes today. I'm intrigued and will continue to do more research there. Regarding investing in rentals, in my particular situation, an "undercapitalized investor" as you put it (which i'm not disagreeing with. I wish I had more capital to get started with but I just don't), what would you suggest my best course of action to be? As a reminder, I have 28k, live in Orange County CA, have a low credit score (that I'm working to clean up), but even if it were higher I still don't qualify for traditional financing as I'm currently self-employed. After taxes my annual adj. gross income is next to nothing. I did manage to save that 28k in a little over a years time and will continue to save at a rate of approx. 1800/mo. 

@Account Closed I completely agree with regard to the importance of management! I'm wondering do you come across many out of state investors who currently have Baltimore properties in their portfolio? I'd love to get their perspective. 

Thanks for your comments, Jay! No, not relocating. But my current job does allow me the flexibility of being able to take spontaneous and/or longer planned trips. If I do go the sub 30k route, I wouldn't just be doing a couple properties. I'd be going all in and expanding my portfolio each year with as many properties as possible. Regarding note buying, I'll admit that I don't know a lot about that business model, but I'll definitely look into it as a possibility. At this point I'm not going to close my mind to the possibility of anything and after weighing all my options will make the choice that suits me best. Not to say that if I don't do something now, that I may not do it later. But I will try making the most informed decisions possible and appreciate your comments and concerns! Much appreciated!

Thanks Anthony! Being an out of state investor will definitely have its challenges I'm sure! Assembling a great team, including PM will be a must! I've been looking at Baltimore City a lot! I'm drawn to the row houses for some reason, haha! And from what I've heard, the payouts can be great if it's the right property. With the flexibility of my current job, I would try to time it right so i could be there during the rehab. 

The partner thing intrigues me as well as scares me a little, but I think thats because I'm still a newbie. To clarify, when you say that "credit isn't necessary" do you mean the potential partner bringing their good credit to the table? Or are the rehab loans you mention more forgiving when it comes to credit?