All Forum Posts by: Justin Brin

Quote from @Brandon Goldsmith:

I personally invest in Ohio, but it depends on what you are looking for inventory-wise. Value add turnkey, multifamily. Might be a good option to sort that too on what your strategy is and the type of available product. @Justin Brin

 I would say I would like to build equity. Not too much headaches (meaning fairly good tenants). Cashflow not negative.

Quote from @Robert Ellis:

Quote from @Justin Brin:

Quote from @Alfath Ahmed:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:

Which metro you recommend and which metro you don't recommend?

I know California is not so investor friendly due to high taxes and non landlord friendly regulation.

Florida has high insurance costs in some areas?!

What do you think?

I recommend the Columbus market is a great place for out-of-state investors to start their investing. It is a major tech hub in the midwest with large companies like Intel investing $20 billion, Amazon investing $3.5 billion, Google building 2 new data centers: one in downtown Columbus and the other in right outside of U.S. 33 in Lancaster.

Currently, there are only 3 C class areas in Columbus. They are Hilltop, Whitehall, and South Linden. BRRRR's and flips are only available in this area. The average home prices went up between 24-35% this past year in this area. These areas are projected to turn into C+/B- within the next 1.5-2 years.

How you think is Columbus vs Indianapolis?  Where there will higher quality tenants? 

 not even close. go to jobsohio.com and see why. Most new construction jobs after only New York and Dallas, fastest growing millennial population, more mega projects, on and on and on. ohio state university, state capital, larger population

 Interesting. I looked in Indeed.com and searched for jobs within 25 miles, full time and found that Columbus and Indianapolis had similar job count (Around 16k). Is there any other way to compare job counts?

@Ofir R. Real estate power is not really in cashflow. If you want lots of cashflow maybe open a casino or a gas station.

Real estate real power is in appreciation and building equity.  With Real Estate you can leverage your investment get tax benefits and over time build exponential growth in equity tax free. 

8k a month is like $1M in 10 years. Many investors reached much higher equity in 10 years with 500k investments.

For example lets assume you buy a property for $1.6M with 400k down (25% down) and keep 100k for backup for repairs, vacancy maintenance etc.

Lets assume the YoY appreciation in that area was 7% and your mortgage interest rate was 7%.

In 10 years from now the property will be worth: $3.1M and $1M debt this means you will have now equity of $2.1M. This is $17,500/month for 10 years.

On cashflow of 8K you will pay like 3k taxes so you will be left with 600k in 10 years while in the equity method you will have $2.1M

Quote from @Alfath Ahmed:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:

Which metro you recommend and which metro you don't recommend?

I know California is not so investor friendly due to high taxes and non landlord friendly regulation.

Florida has high insurance costs in some areas?!

What do you think?

I recommend the Columbus market is a great place for out-of-state investors to start their investing. It is a major tech hub in the midwest with large companies like Intel investing $20 billion, Amazon investing $3.5 billion, Google building 2 new data centers: one in downtown Columbus and the other in right outside of U.S. 33 in Lancaster.

Currently, there are only 3 C class areas in Columbus. They are Hilltop, Whitehall, and South Linden. BRRRR's and flips are only available in this area. The average home prices went up between 24-35% this past year in this area. These areas are projected to turn into C+/B- within the next 1.5-2 years.

How you think is Columbus vs Indianapolis?  Where there will higher quality tenants? 

What you ended up doing with SFH#2 is on the East side of Indy? You just rented it out?

I guess it makes sense that Multi family units will bring in less quality tenants but if you buy it in a better area and it's in better condition I guess you can still bring good enough tenants?

In LA you can add ADUs so many investors buy properties with alleys or on a corner lot and build an ADU with 2-3 bedrooms and rent it out for good rent but then I think you are subject to rent control since then your property turns into multi-family and in LA there is rent control on multi-family (It might be harder to get insurance now a days for the ADU because of the current insurance crisis in California).

Riverside, CA is cheaper than LA but even there I don't think you will cashflow. Unless you put a higher downpayment. 

I heard about Palmdale, Lancaster, CA. They are 1 hour drive from LA and newer houses and have good rents. There might be an option. Prices went up there a lot in recent years. They have a job market there and LA is only 1 hour away so defiantly tenants can find there a job. In rush hour it will take longer than 1 hour but still many drive to Santa Clarita or LA for jobs.

Quote from @Bob Stevens:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:

Which metro you recommend and which metro you don't recommend?

I know California is not so investor friendly due to high taxes and non landlord friendly regulation.

Florida has high insurance costs in some areas?!

What do you think?

 There is a reason investor from around the world have been buying for the last 10 years and still are buying in the Cleveland markets. If you got in , 7 8 years ago, you doubled tripled or more on top of the 20% net caps. I just locked up 7 more last week, all are under 90k, all have rents from 1100- 1400, all have values from 115k- 125k . MF, try finding one, there is simply no inventory. 

All the best 

I guess Cleveland might be a good option. 

I was wondering did Cleveland market crash really bad in the last Real estate crash in 2008-2011? 

Quote from @Marcus Auerbach:

Where did you pull that data? Milwaukee metro has 1.6M people and median is 225k.

 You are correct. 

There a few other metros that should be in the list. 

In the list above I mostly entered locations I hear a lot and seem to be more papular for investors but I might be wrong and there might be other locations that I missed. 

Quote from @Magnus Wikström:

$500k is not little money. It should give you purchase power of buying a property of $2m+. You'll certainly take on risk but not taking on debt will limit your returns. Even not taking on debt, you'd need to take on risk, either via a strategy such as @John Underwood - very impressive, or purchase in somewhat risky neighbourhoods.

Short answer - you could reach those goals but you'd need to be very aware of what you're doing. As an artist with no investment experience or background you likely won't reach those nr's.

I'm actually setting up a business where you'd reach far better numbers than that, but not via monthly cash flows, rather via semi-annual to annual. Partnering with GC's in their spec homes, passively. But it's another story.

He mentioned his income is not stable so most likely it will be hard for him to qualify for a $2M+ loan?!

Quote from @Ofir R.:

Quote from @Chris Seveney:

@Ofir R.

Not immediately. After 4-6 years of compounding maybe

Current cap rates are 3-9% in real estate and you are looking for near 20. The risk involved in going after something that high of a return could also cause you to lose a significant amount of money.

Of course there are people that will say yes but in reality it’s not likely

 Thank you! How about turning 500K to 4K monthly income? Would that be more possible to your opinion?

 Maybe if you buy a few houses in a lower cost area like OH and split it to smaller units and do short-term rentals on all the units.

It's going to be a full time job managing all the units but I guess it's possible to reach that return rate of 4K a month but with lots of work. Most likely not passive at all.

@Tolulope Adewole Option #1: You can install a temporary door between the two units for 1-2 months just to get the financing you want. Tell the tenants it's temporary and you will give them a 5-10% discount on their rent for those 2 months the door will be there. Leave the door locked and only open it when the appraiser is coming to inspect the property. Then it will be appraised as a SFH.

How much does the value of the house change if it's a multi-unit or a single family?

Option #2: As mentioned above look into the title insurance and the title records of the property to figure out if you can sue someone for your losses in case they didn't inform you upfront that it's an illegal multi-family.