All Forum Posts by: Jeff Roth

Hi Stanley-

Great question! You are a broker and have clients with $10-15K to invest feeling stuck and wondering the best way to get started with real estate investing without having 50-100K saved.

I would look at house hacking a house they bought as a primary residence and rented rooms or buying a duplex as a primary residence with low money down and having the other unit help with the expenses.

Then, they can refinance after the property appreciates, pull out equity, and move to the next duplex and stack that way.

To Your Success!

Hi Benjamin from Philadelphia, Pennsylvania-

Great Question! You are a new investor and a high-earning W2 professional. 

You are looking to get started with long-term rentals out-of-state. You are just starting out so don't have a great deal to put down and wonder how best to begin.

I would look at a market like Lansing, Michigan where you can get a duplex for about $150,000 plus or minus. This gives you at least one rent check coming in, hopefully, if you have a vacancy. If you bought a value-add property, you could fix it up when the units become vacant-increasing the rents and the property value. Then, you can refinance out your downpayment and go shop again in a short period of time.

Consider looking into short-term rentals at some point because if you spend 500 hours materially participating in the management of the property you may be able to significantly reduce your W-2 or active income.

To Your Success!

Hi Doug-

Great post! I worry about this as well. Investors trying to do too much themselves--especially outside their area of expertise or experience.

Mostly to avoid costly mistakes and to borrow someone else's 10,000 hours.

Agree, find yourself an investor friendly Realtor with a teacher's heart in the area you are interested in investing and let them help you avoid costly mistakes and add value to you and your return on investment.

To Your Success!

Hi Michael from Grand Rapids, MI-

You are brand new to the idea of real estate investing and asked about must learn topics to choose the best path.

There are many books, videos, and courses one could take and study-most of which are free through YouTube and the Library.

If I were starting over and when I advise new investors, I would consider the following:

1. Start with duplexes. Single-family houses are alligators when not rented.

2. Buy one well that needs some work but is rentable so you can fix up the units when they become vacant, increase rents, and then refinance out your downpayment.

3. Take the refinanced downpayment and go buy another.

There are several markets in Michigan where you can do this. An investor friendly Realtor in the market you are interested in can help you find properties and provide the rest of the team you need.

To Your Success!

Hi Christopher-

Great question! 

You are a newer out-of-state investor looking to Buy Rehab Rent Refinance and Repeat with small multi-family properties $80-$125,000 in a landlord-friendly market with steady job growth.

You also asked the #1 action step that was taken early on that moved the needle with investing.

First, there are several markets in Michigan that match your buy criteria.

Second, the number #1 action step I took was getting some self-eduction on investing from books and trainings. However, I would limit the amount of time you spend on that to knowing just enough to begin (no more than 6 months) then find an investor friendly Realtor with a teacher's heart in the area you want to invest. They can introduce you to the best property inspector, lender, insurance agent, asset protection attorney, contractors, and property manager. 

To Your Success!

 Hi Karan-

Sure. Very few markets like what you describe and all State's have them. I am not describing those markets.

To Your Success!

Hi Karan from Connecticut-

Great question! You asked where you can purchase 2-4 unit properties for under $250,000.

There are several markets in Michigan that would offer properties in that price range with attractive places to visit with tenant demand and property appreciation.

We have excellent, local property manager partners, inspectors, and local lenders.

To Your Success!

Hi Vincent from south Florida-

Great Question! You asked about investing in properties that are older than 100 years old.

You see a few opportunities where the numbers work in the Midwest and wonder if it is a good idea to invest in properties that old.

Obviously, you would want to have them thoroughly inspected and see if there are environmental or electrical/mechanical issues. However, many of these houses were built well and if you budget in your offer for things like upgrading the electrical, it could be a very productive and profitable house for you as an investor.

One other consideration is insurance costs which may be higher due to the age of the house so get an estimate on that and factor that into your offer.

To Your Success!

Hi Samuel-

Great question! You are asking how to analyze a Buy Rehab Rent Refinance and Repeat (BRRRR) deal. First off, this is a great we to build your portfolio. Secondly, not all markets will allow you to do this. Third, you need to have a solid local team that acts as your fiduciary.

As far as calculating a BRRRR, I recommend you work with an investor friendly Realtor in the area you are interested. They should be able to help you identify markets and properties to use the BRRRR buying method. Recommend you look at duplexes as you should always have some rent coming in. Once a property is identified, the property manager and contractor should be involved in the due diligence to give you accurate estimates for work and weigh in on how to add the most value. Then, you can do the work immediately, if vacant, or as the units become available. The positive cashflow can help prepare for these improvements. After improvements are made, work with your investor friendly lender to refinance, pull money out, and go shopping again.

There are several markets in Michigan to BRRRR.

To Your Success!

Hi Colby from Charlotte, North Carolina-

You are a senior in college studying biomedical engineering but caught the real estate investing bug this year and asked about property management as a career and using the profits to fund your own real estate portfolio and finding good deals.

Congratulations and great question! I think having an interest in real estate investing at any age is wise and you can always fall back on your degree should you choose.

First, can you make a career and future out of property management? Absolutely! There will always be a need for property managers and real estate. You might think about going to work for a property manager while you build your own property management business. You can learn a lot this way from a good property manager and may even find out about off-market deals from some of the owners you work with. Look for a property manager with a teacher's heart and a good reputation.

Short-term and mid-term cohosting can also be profitable forms of property management.

If you cannot find cash flowing good deals by you, there are several markets in Michigan where you still can. Happy to help.

To Your Success!