All Forum Posts by: Jeff Roth

Hi Janet from Raleigh, North Carolina-

You are 54 and love your work at a non-profit and are ready to start investing in real estate.

Your husband is risk-averse and looking to retire in 5 years.

He's good with investing as long as your assets are protected from lawsuits and the investing is done thoughtfully and he is not involved in the property management.

Recommend you look in an area that cashflows well at a reasonable price ($135,000 plus/minus) ideally starting with a duplex so you always have a rent check coming in and some work that could be done when the units become vacant to add value and increase rents. Then, plan to refinance in a year or two and use the equity to go buy the next one.

You certainly want to have an excellent property manager to make your investment as passive as possible, investor insurance coverage from a knowledgable agent, and asset protection in place with an LLC and asset protection attorney.

This is all doable in many markets in Michigan.

To Your Success!

Hi Calvin from Hammond, Indiana-

You are 17 and will be 18 in 40 days. Love it! You asked what is the best way to get started and build wealth with real estate investing.

You asked about house hacking where you buy a primary residence up to a 4-unit and rent out parts of the house or other units and using creative financing and/or the BRRR strategy or Buy, Rehab, Rent, Refinance, and Repeat to scale your portfolio efficiently.

Great question!

House hacking a property you can live in while renting out other rooms and even the garage for storage is a great way to get started with minimum down. If you find a motivated seller, you may be able to negotiate some seller financing or lease with the option to buy. Additionally, you can work with a landlord to rent a house with the ability to sublease the house and then lease the house out as a short-term rental (make sure you understand the STR rules for the area) or just rent out the rooms to other people for positive cashflow (make sure you know the rental rules for the area).

To Your Success!

Hi Shyla from Los Angeles, California.

Congratulations on being ready to start investing in real estate. Like many others, the numbers just don't make sense locally for you so you are looking out-of-state.

However, you realize the need to have an excellent team in place to own an income property out-of-state and ask where and how to begin and avoiding costly mistakes.

This is a wise question.

There are people who can help you implement out-of-state ownership at a high level without having to put all the pieces together yourself.

One of these people is an investor friendly Realtor or Broker in the area you are interested in investing. You can find them in investor forums like this, Facebook groups for real estate investors in the area you are interested in, or local real estate investor organizations.

One area to consider is Michigan with its still relatively affordable real estate, demand for housing, and reasonable climate. We have helped many investors from California and nationally invest successfully in Michigan.

To Your Success!

Hi Michael from New York-

You are interested in investing in short-term rentals and are looking for advice on how to get started.

We help investors, especially high-income investors, buy short-term rentals in Michigan which are popular along the coasts and in many inland communities. Real estate is still relatively affordable and the climate is favorable.

Short-term rentals are popular because it is one of the highest and best uses for an income property and you can reduce your W-2 and active income if you spend enough hours a year helping manage the property.

We partner with a state-wide short-term rental property management company that helps us and our investors know what the trajectory of regulations are in each community and they use their tools and experience to tell us average daily rates, average monthly and annual revenue, and if the market is saturated with short-term rental properties.

To Your Success!

Hi Rohan from northern Virginia-

Congratulations on getting started in real estate investing and you wonder if you should buy a house as a primary residence with low down and rent out parts of the house or buy small multifamily out-of-state where it is more affordable.

If you can find a duplex near you where you can live in one unit and rent out the other, this is a great way to get started and you can wait a year or so and go buy the next one the same way.

If you cannot do that and have it make financial sense where you are at, then looking at markets in Michigan where you can get a duplex for around $130K with rents of $1,000 plus per unit depending on bed/bath count, condition, and area is also a solid choice. Buying one that has value-add opportunities would also allow you to pull cash out and go buy the next one in a year or so.

To Your Success!

Hi Valerie from Gilbert, Arizona-

Congratulations on getting ready to invest in single and multifamily properties.

You would like to work with a Realtor and wonder what the best questions to ask are.

Great question! Here is what I recommend:

1. Have they worked with investors before and their experience doing that?

2. Have they worked with commercial properties greater than 4 units?

3. Are they an investor themselves or have personal experience?

4. What is their process working with investors?

5. Do they have experienced referral partners like lenders for investors, property inspectors, property managers, insurance providers, and asset protection attorneys?

To Your Success!

Hi Maria from El Paso, TX-

Congratulations on reading eye-opening books on real estate investing and being eager to learn more and get started.

You asked about best ways to get started and creatively.

If you can buy a property near where you live as a primary residence and rent out rooms or buy a duplex up to a 4-plex and rent out the other units, this is a good way to buy a property with little down and have others help pay for it. 

If that is not an option, look to do the same in a market you can afford to live in not far from you.

If you are priced out of the local markets, then consider moving or investing where the price points are favorable putting as little down as possible. 

Many markets in Michigan can get you a duplex for around $130K with rents of $1,000 per unit plus or minus depending on bed/bath count, condition, and area.

To Your Success!

Hi Juan from Miami, Florida-

Congratulations on your interest in real estate investing.

You recently moved back home, are single, and have a steady job.

Based on the expensive real estate market in your area, you are looking into Buying, Rehabbing, Renting, Refinancing, and Repeating or the BRRRR Method out-of-state.

I think this is an excellent idea and you can get a value add duplex in a market like Lansing, Michigan for around $135,000, have about $2,000 a month plus/minus depending on bed/bath count and condition/area in rent a month, and rehab the units to increase rents and value when they become vacant then refinance to pull cash out for the next one. We also have an excellent local property manager to help you reduce tenant turnover, maintain the property, and increase your ROI.

To Your Success!

Hi Andrew in San Antonio, Texas-

Congratulations! You would like to house hack a property, up to a 4-unit, by living in it as your primary residence and putting as little down as possible.

This is a great way to buy investment property but you worry about trying to do it, self-managing, and having tensions with a tenant if you get into a conflict over rent or the lease and wonder if it would be better to plan on having the expense of a property manager to avoid this.

Always advise my clients, who do this, to use a property manager to make their investment as passive as possible and avoid conflicts with people living in the same property as them.

To Your Success! 

Hi Patrick-

Congratulations on being new to real estate investing.

You asked if it is worth it to have your real estate license as an investor.

While not necessary, I do think there are several advantages to having your license as an investor. 

1. Ability to help others invest and make money doing that.

2. Ability to use the tools available to you to as a Realtor to find comparable value and market rents.

3. Being notified about deals coming to the market.

4. Making a commission on the properties you purchase.

5. Staying compliant for your license with continuing education keeps you updated on laws affecting real estate and fair housing.

So, I believe there is an advantage to having your license as an investor but it is not necessary.

To Your Success!