All Forum Posts by: Jeff Roth

Hi Zach in Newark, New Jersey-

You are 21 and saving $2,000 a month and still live with your parents and in no rush to move out and ask what would be the smartest, first real estate move to build long-term wealth.

Great question and congratulations on starting your real estate investing journey.

First, let me say, I would stay at home as long as possible as long as everyone is good with the arrangement. (1) It helps you stack cash. (2) Hopefully it adds value to your family being there and helping out. (3) You want to launch into the world in as strong a position as possible and low overhead helps you do that.

That being said, I would invest in a cash flowing duplex, possibly in an area you could see yourself living, that way you always have a rent check coming in and the option to live in one part of the duplex and have a tenant help pay the expenses in the other unit. If you bought it to live in one side from the beginning, you could buy it with less down, refinance cash out, and go shopping for the next one the same way in a year or two and stack duplexes that way.

There are markets here in Michigan where you can do that and we partner with the best property managers locally and recommend you use a property manager.

To Your Success!

Hi Jackie from New York, New York.

You are starting out in real estate investing and looking to invest out-of-state.

Your investment criteria includes (1) Buy and hold property (2) Long term tenants (3) Single-family homes (4) Class B to A areas (5) Opportunity to add value (6) Cash flow as primary focus (7) Low risk of natural disaster and (8) Population growth and less than average crime.

I like your criteria but would encourage you to consider starting with duplexes as you should always have a rent check coming in and Class C areas for better cash flow if that is your primary focus.

Two areas I would encourage you to look is Lansing and Grand Rapids, MI.

We have excellent property manager partners in both locations that handle all maintenance, keep tenants happy which reduces turnover, and work to add value to the property and rents.

To Your Success!

Hi Damani in Metro Detroit-

You have single-family and small multifamily properties and have self-managed but wonder if technology or a property manager can help you manage your property.

Great question!

I started out self-managing but learned pretty quickly that was not a part of the business I enjoyed and my time could be spent doing other things.

A good property manager will not only manage and maintain your property well; they should also increase the value of the property with their management and maximizing ROI.

A quality property manager is probably one of the most important members of your real estate investment team.

Always recommend my clients use a property manager and factor that into their deal analysis and involve the property manager before buying the property and when analyzing the deal and how to increase property value and rents.

To Your Success!

Hi Ben from San Diego California-

You are a corporate and real estate lawyer and looking to get started in real estate investing but feel priced out of your local market with few cashflowing opportunities nearby.

There are many people living in high priced areas looking to invest in more reasonably priced out-of-state areas with cashflow, rent growth, and appreciation.

The most important person to add to your team out-of-state is an investor friendly Realtor. You find that person on Facebook groups for real estate investing in the areas you are interested in or forums like this.

We help many out-of-state investors build their portfolios with still relatively affordable Michigan real estate.

The best way to scale efficiently is to buy value-add duplexes, improve the property, increase rents, refinance, and go shopping again or the BRRRR Method which still works in Michigan.

You get market rents from your investor friendly Realtor who can pull that information and involve their preferred local property manger to analyze rents and the property before purchasing.

To Your Success!

Hi Anthony in El Cajon, CA-

Congratulations on being an agent and already investing in San Diego.

You like cash flow and wonder where to invest out-of-state.

There are many markets in Michigan that offer both cash flow and appreciation.

We partner with the best property managers in each of these areas to provide the best ownership and tenant experience, as well as, managing for strong ROI with in house maintenance teams.

To Your Success!

Hi Antonio-

Great question! You ask if you should buy "turnkey" investment properties as a new investor?

You say you have gotten mixed reviews on this idea up to this point.

I agree some investors like "turnkey" properties to invest in.

Personally, I think you should develop the team and basics to be able to find and create your own versions of "turnkey" properties in areas you are interested in. That way, If you know how to develop the team locally and have basic deal analysis understanding you can replicate the model where there are opportunities and not just where someone decided to offer "turnkey" properties.

To Your Success!

Hi Steven in Calgary, Alberta-

Great question! You are a new investor and will be investing out-of-state.

You are looking at "turnkey" properties in B and C class areas and light value-add in C class areas. You say you will be using a property manager.

To do this well, you really need to have an excellent team that you trust on the ground. Additionally I would also recommend you start with a duplex so you always have a rent check coming in hopefully. I like the light value-add option to increase the property value and rents.

One market in Michigan that is ideal for this is Lansing, MI but there are others here and we have excellent property manger partners in each of those markets.

To Your Success!

Hi Luca in Costa Mesa, CA-

You have an investment property with equity in Michigan and wonder the best way to finance 20K in renovations to improve property value and cashflow.

I would look at a Home Equity Line of Credit and the University of Michigan Credit Union did offer this on a single investment property.

The next best option is a cash-out refinance and you can do this with a DSCR (Debt Service Coverage Ratio) loan using the income from the property to qualify. There is a local lender I can refer you to.

Both options are fairly quick with reasonable terms.

To Your Success!

Hi Debra in Bronxville, NY

Great question! You ask if the window to invest in real estate has passed or closed for good because of potentially declining population, weather related disasters, and the cost of borrowing/maintenance and ownership?

There will always be bad news and there always was bad news when making an investment decision throughout time.

As long as the property cashflows when you buy it, inflation will make sure it cashflows in the future if your debt is fixed.

There are still cash flowing markets in the country like where I serve in Michigan.

The best time to buy was yesterday. The second best time is today.

Top Your Success!

Hi Joe in San Antonio-

Great question. Is networking the best use of a real estate investors time?

I do believe networking can be beneficial. However, like you, I find other things to be more productive to generating a network that supports lead generation and deal flow.

1. Sharing content that attracts people interested in the real estate investing and working with me.

2. While actively working with the people that want to work with me, I am staying current with the market conditions and connecting with the other professionals I need to do more deals which organically builds my network.

3. I send business to these other professionals and as result they send business to me.

This creates a virtuous cycle and more deals get done and more people added to the network.

This is what I have found to be the most productive way to network-but that is me personally.

To Your Success!