All Forum Posts by: Jeff Roth

Hi Shawn-

Congratulations on starting out on your real estate investing career.

You have a question about whether it is good to have your real estate license or not as an investor and you are leaning toward multifamily investing.

I personally think having your real estate license is helpful as an investor.

Having your real estate license allows you to work with other investors to help them build their portfolios which helps expand your network while being productive, you can research market value more effectively, find out about deals before they are listed, and of course it allows you to collect the commission on purchasing any listed property.

To Your Success!

Hi Anthony-

You currently live in NJ and are looking for out-of-state locations that are affordable with strong rental potential.

I would look at a market like Lansing, MI. You can get a duplex for around $150,000 or less. It is the State capital so there is always economic development happening which drives job growth and demand for housing. There are section 8 opportunities if you are interested in part of the rent being guaranteed by the government. Finally, the cost of living is relatively low which makes maintenance costs lower for the labor.

To Your Success!

Hi Lauren-

You have a fully occupied duplex in Dallas, Texas with solid revenue and have moved across the country and would like to find a Realtor that can connect you with other investors to sell the property quietly to avoid disturbing the tenants.

Here are some thoughts:

1. Look at listed investment property and if you see the name of a listing agent more than once reach out to them.

2. Contact the local real estate investor group in your area and ask for a referral.

3. Local property managers are another great way to find buyers for your investment property as they know investors looking to acquire more property and investor friendly Realtors to help you find buyers.

To Your Success!

Hi Lolo in California.

Great questions. You have $400K to invest and are thinking about duplexes out-of-state and Columbus, OH has been tough to find cashflowing deals.

I think you are wise to be thinking about duplexes as they are more affordable and you should always, hopefully, have at least one tenant paying. Section 8 tenants are another way to secure rent payment with government backing.

The Midwest is a solid market for rent growth, cashflow, and decent appreciation.

Look at a market like Lansing, MI. You can get a duplex for around $150K or less. It is the state capital with lots of economic development driving job growth and demand for housing with a lower cost of living to keep maintenance costs down.

To Your Success!

Hi Mike-

Congratulations on being a first time investor and you are wondering when to start using a property manager.

The property manager is probably the most important person on you team. They should be found early on by talking to other investors or your investor friendly Realtor.

It is through effective property management that your money is made besides buying well initially. The property manager should be involved before you buy any property to give input on due diligence, how to increase income and reduce expenses, and to make repairs or improvements to maximize occupancy.

Excellent property management is critical to your success before, during, and when planning to sell or refinance.

To your success!

Hi Radhika-

Congratulations on being a homemaker with young kids and looking to do more for the family financially now that the kids are older.

You have 50K to get started but are having difficulty choosing markets and deciding where to begin and you are thinking about single-family long-term rentals out of state because you live in California.

I would encourage you to start with duplexes, preferably with 2 bedrooms in each unit for tenant longevity, and ideally with separate utilities. This way you always should have cashflow coming in and consider renting to section 8 for a government backed rent check. 

In a market like Lansing, Michigan, you can get a duplex for $150K or under. There is strong economic development because it is the state capital which drives demand for housing. Cost of living is also lower in Lansing so repair costs are lower.

You will want an excellent, locally property manager that handles management and repairs, along with an investor friendly Realtor, CPA, lender, insurance agent, and attorney.

To Your Success!

Hi Guenevere-

You have $23K liquid and wonder if that is enough to start investing in OH with section 8 rentals and you are a full time property manager out of State.

I would recommend having twice your downpayment in cash or equivalents, like a line of credit, for repairs and unforeseen expenses as a minimum.

You want to have as much reserves as possible and agree with your focus on Section 8.

To Your Success!

Hi Steven-

Great questions and congratulations on having $100K cash to invest in real estate.

Your goals are cash flow, appreciation, and long-term holds.

You asked about strategies and suggestions for locations.

I would invest in two duplexes so you always have income coming in, in Lansing, MI for about $140,000 each. Buy them well so you can refinance out the downpayment with a Home Equity Line of Credit with lenders that will do that for you and go shopping again. Look for section 8 tenants. Use an excellent property manager. Infinite system and money created.

Keep some dry powder for the emergencies.

To Your Success!

Hi Patrick-

Great question.

Congratulations! You have saved enough cash to purchase a small 2 bed, 1 bath single-family rental that already has a tenant. 

Your question is should you pay cash or get a mortgage.

The investment calculators will say you will have a higher return on investment using as little of your own money as possible.

Depending on your goals, like if you want to buy more rentals, this may be a wise strategy to put as little down as possible.

However, if you are strictly looking to maximize your cashflow, having a paid off house is great.

Honestly, I have a bit of both but like having the house paid off. If you have a monthly cashflow goal, you can get there with 10 paid off doors or 50 leveraged doors or properties. Defends on your goals.

To Your Success!

Hi Alyssa-

Great question! You live in California and are networking with investors there who prefer to invest in places other than California because the prices are so high and a challenging environment for landlords in many places. You are asking about out-of-state investing in general. This is a common problem for other places besides California.

Most of my clients are out-of-state investors-California being one of the most common places for investors I work with.

I would say, in general, it is very similar to in-state investing in that your investment is as good as the team you use. If you have a good team with a solid reputation for being a fiduciary for their client you will rarely need to visit your properties. In fact, most of my investors don't see their property in person until they have owned it for a while without issue. This is accomplished with an excellent team around you including an investor friendly Realtor who ideally is an investor themselves, property inspector, property manager, insurance agent, and asset protection and business attorney. I use the same team I recommend to my investors and rarely need to visit my own properties in-state.

To your success!