All Forum Posts by: Justin R.

On this site you will get investors that have Rockstar realties 5 states away, and realtors themselves.

Do yourself a favor and get your boots on the ground, meet some locals, and get references. A realtor that you are wanting needs to be new and fresh enough to the have energy and willpower to work their a#$ off, but also have some experience and education to bring to the party. 

On the other side of the spectrum, communicate your intent, and most importantly you must respect their time.

Cheers!

Great question, and even better position to be in!

I was in a similar position a few years ago. I decided I was going to trade in (sell off) many of my SFDs and reinvest into MFDs. My position was based upon my previous experience, and the time needed to manage those single assets. The amount of rooms, heating systems, separate property tax bills, insurance premiums, etc, etc. 

I understand you are not necessarily wanting to sell, but perhaps tap into the equity (refinance, portfolio loan, partnership) and parlay the equity into fewer, larger properties. 

Take a peak into portfolio or blanket loans. Some regional banks and credit unions will do them. They will group all of your properties into one asset, and give you one large loan. Much more simple (one monthly mortgage payment, and one 1098 each year!) The drawback is the challenge of selling a single property out of that grouping.

Last note, I don't like fully paid off properties. If you ever get sued, and a contingency based attorney looks at your property, and doesn't see a note attached, that is a low hanging, ripe fruit. Even a real small note offers some level of liability diversion in my opinion.

Cheers!

I can let you know with 100% certainty, whether this is a good time to buy, in two years.

@Jay Hinrichs So true!

I’m in CA and love the state, but not the politics, and policies.

Anyone in tech that is doing a startup knows the smartest tech minds are in the Bay Area, so for at least the near future it will remain the hub.

Did someone say Nvidia? Perlexity? Flutterflow? WriteSonic?

Regardless, CA needs to clean up its act or else tech (and film) will eventually get fed up. Hopefully the voters and politicians will get the point 🤞

@Mark S. I’ll check it out!

@Drew Sygit Thanks! What one do you use if any?

I just looked into some asset management software now that youyou brought it up.

There is one called “RealPage” designed just for real estate.

I love to hear some feedback on any of these.

Thanks!

 Thanks for the advice! 

I’m curious as to why you chose the south east.

Also, would you consider growing your portfolio OOS? Or is that not viable ?

I chose the Southeast due to the growing population, growing job market, better price/rent ratio, and more landlord friendly laws.

I still invest OOS. But, due to the higher interest rates I have definitely slowed down the velocity of acquisitions though. Still viable, but you have to BUY RIGHT in this market. There is less room for error. When we had an appreciating market, high inflation, low unemployment, extremely low interest rates, obvious relocation patterns (especially during covid), there was so much room for error. In today's market with interest rates as high as they are, coupled with the fact appreciation and rent growth may not grow for some time, you have to be more careful. 

I personally like House-hacking as primary choice in this market, followed by a light rehab BRRR, lastly would be flip or long term hold (unless you got a smoking deal!)

I was living in the Los Angeles area as well when I started my "Out of State" investment journey. I was buying properties in Texas (DFW area) that cash flowed from day 1 (back in 2009.) Texas is difficult as a Californian due to the extremely high Texas property tax, coupled by the CA state income tax. It's a deadly duo.

I continue to invest in out of state rentals but predominantly in the South East. The friendly landlord laws, typically lower tax burden, and population/job growth have made the SE a great place to park assets. 

In general, your most important ally in OOS investing in your property manager. They are your "Hub" and your point of contact/reference for other team members. Agents can be important, but there are too many out there focused in the transaction. A property manager is relationship based, not transactional based. If they tell you property "A" can rent for $2500, then they are the ones who have to put their money where their mouth is. A good manager can make or break you while investing OOS. 

Side tip, if you decide to close without using a agent (not usually a good idea in a new market) then you need to 100% get an inspection (using your own inspector, not the listing agents) and be there during the inspection, title insurance (as always), and have a pre-existing relationship with a property manager. Get their opinion on the property (while respecting their time.)

Best of luck!

Quote from @Drew Sygit:

What different info would an investor want vs PMC?

 Lots of things. Most notable cost basis, debt service, cap ex schedule, accounting, checking account oversight for ease of transactions, property tax tracking and trends, custom KPIs and modeling. 

Plus a RE investor that uses a property management company doesn't need, or want to deal with a system that caters to a manager. Things like vendors, tenant info, billing, maintenance orders, tenant communications, etc.

Quote from @Drew Sygit:

Look into Buildium to start.

 Buildium is made for property managers, NOT investors. Per my post, Im saying there is a need for a software for real estate investors.