All Forum Posts by: Jack Medford

@Nick Pisano My suggestion, especially if you're attempting the BRRRR, is similar to what @Paul Stewart suggests. Pick somewhere within a 2 hour drive (or whatever distance you're willing to travel), so that you can spend some time actually in the market. 

I live in Madison, WI but primarily invest in Milwaukee and Racine because I am pursuing the cash flow opportunities out there. I am only 1.5 hours from Milwaukee and 2 from Racine, but the challenges mirror that of an out of state investor because I am visiting these markets no more than once every 2 months or so. My goal is to do long distance BRRRR investing, but I am establishing my base first.

If you have done no investing so far, it is going to be very difficult to pull off a long distance BRRRR (at least a successful one). I don't want to completely dissuade you from trying, but just understand that it is going to take a lot of work and a lot of learning as you go. No amount of reading can completely prepare you. That $40k is going to be used up a lot faster than you might think.

After all this, if you are still interested in pursuing out of state, and have any interest in the midwest, I can help point you in the direction of some contacts that can give you a bit more info. There are a few interesting markets here in Wisconsin that may work for you, depending what exactly you're looking for. 

@Andrew Neal Actually, no. One is in Racine, and two are in Milwaukee. 

@Andrew Neal I can sympathize with her desire to stay away from long, cold and grey winters. The Wisconsin climate is not something I have grown to enjoy. I recently went back to visit California and thoroughly enjoyed being at the beach in the middle of winter.  

I've heard great things about the Dallas area. It is actually a place my wife and I considered before settling on Wisconsin. Either way, best of luck in deciding on a location! (If you decide to make the leap, that is.)

@Andrew Neal You and your wife sound like a great team. Have you thought about where you might move to, or is this still just the beginning stage of an idea?

I did this about a year and a half ago. My wife and I were both born and raised outside of LA (Long Beach / Downey area). We moved to Wisconsin, mainly motivated by providing a better life for our 1 year old son. Madison is an amazing town for families, and comes with a lot less headache, especially in the living expenses department. I can work part time and be home with my son, while my wife works 3/4 time. Not very easy to do that living in California. Getting used to winter has been tough though. 

On the investing side, this has led me to owning 3 duplexes since moving here; something that would be unthinkable for my wife and I if we stayed back in California.

I'm attempting to BRRRR in the Milwaukee/Racine/Kenosha area. I say attempting because I'm going slow and making sure I'm learning lessons from each new property.

My first property was a duplex and more of a long term BRRRR. I bought with cash with tenants in place, and did rehab on one unit once the tenant left, and will rehab the other when the second tenant leaves in June.

My next property was bought with cash and needed a lot of work before renting. I got nearly all of my capital out after rehab, but had to leave a bit in. It gave me enough to have for another deal, which I am currently pursuing now. 

I've got a duplex in Racine, but primarily focus on Milwaukee for my investing. @Krisjan Olaf Aukland does a lot of investing in Racine, though. 

I actually found my first deal right here on the BP marketplace. I analyzed it using the Rental Property Calculator. I then presented it to my local meetup group which was formed by BP members. I then went on to buy that deal, partnering with one of the founding members of the meetup group. 

BP has been there every step of the way in my real estate journey. The tools, the podcast, and the website are great, but the biggest help has been the group of people it has brought together. I would not be nearly as far in my investing journey had I not had a local group of investors helping me along. Now I find myself in a position to help others along. 

The best part is, this is not unique. Anyone can do it. And it is all thanks to BP. 

I think what @Marisa R. said is perfect. Keep things nice and simple. Don't get over-leveraged, and know your local market.  

@Shanese Francis since you are looking to house hack, just make sure you are comfortable with the debt you put on whatever place you buy. Even with a down turn, it can still be ok to take out debt, especially a traditional 30-year mortgage. Just don't be overly aggressive.

You'll actually be in the best position come a down turn. You'll have little to no house payment (assuming you buy in an easily rent-able area) which will help you accumulate money faster to buy up the deals that will be hitting the market. 

The #1 advice I've found, and stuck to myself, is.... "Showing up is 80 percent of life. Sometimes it’s easier to hide home in bed. I’ve done both." 

Show up to meetups and then KEEP SHOWING UP. Participate on these forums, and the KEEP PARTICIPATING! As others have pointed out, anyone can say they want to get started in real estate. Anyone can ask for help from those who have done it before. The ones who actually get help are the ones who stick around and show other investors that they actually mean what they say. 

The Milwaukee REIA has a meeting January 8th. It will cost $30 for non-members, but is a chance to meet and greet with actual real estate professionals in your market. You can also look for BP meetups in your area. Here is a facebook group that also occasionally has meetups. We have a great one here in Madison that is completely free. You are welcome anytime. 

If you really want to show your initiative, start your own meetup. It is much harder, but certainly shows that you mean business. You'll also get a great education along the way.