All Forum Posts by: Kenneth Burdick

@Shawn McCormick Thanks for your response and comments on the Orlando market. I'd definitely be open to a short conversation (being mindful of your time) about what you're seeing in that part of the country if you have time. Let me know when would work for you. Appreciate your thoughts!

Hello BP community,

Aspiring real estate investor here from California with the goal to make my first rental property purchase in the next few months. Right now I'm at the point where I'm trying to home in on a good out-of-state market. Some of the areas I've been taking a look at include Charlotte, Orlando and Memphis. I'm hoping to find places that still have positive cash flow potential, long-term appreciation but also somewhere the BRRRR strategy works well. Any other areas that you all have found success that I should be taking a look at? Doing my own research but I want to build my network as well. Thanks in advance guys!

Ken

@Michael Borger That's kind of what I've been sensing, but helpful to hear someone say it out loud who is closer to the market than I am. Thank you!

@Julio Garcia Very helpful. So it's not so much that you can't get approval to do it as much as it's just costly? Do you recall a ballpark cost figure?

Sounds great, @Brant Jones. If my schedule cooperates, I would love to come check it out.

It all depends on the rate of return you believe you could generate on your own with the $1M. In the retirement investing world (mutual funds and stocks - the dark side, I know...), they often talk about the 4% rule. This is a rule of thumb to help you figure out how big of a nestegg you need before you're ready to retire. The idea is once you can live off 4% of your nestegg, you're set since you'd be living off a conservative rate of return and wouldn't be cutting into the principal.

So 4% of $1M would be $40k/yr or $3,333/mo. So if your belief is 4% is the best ROR you could generate, then you might take the $10k/mo. But if you are more confident and believe you could get a 15% ROR, then you'd take the lump sum.

Out-of-state investor that has been following the market in Oahu for a few months now. Been looking into possibly purchasing a small multi-family (duplex/triplex/fourplex) as a long-term rental. I'm seeing quite a few of these types of properties for sale, but mostly they seem to be the type of property where the units are not separately metered and I'm not even sure if they're technically legal. The issue that I see here is that could mean that I end up having to cover many of the utilities myself. So my question is this - does anyone know how difficult it is to get the city/county to approve converting these types of properties into "legal" duplexes, triplexes, etc. with separate meters, etc. If this is a routine process, it could be a game changer with some of the projections I'm running. Would love to hear from any of you who have experience on this front.

Thanks!

Ken

@Abigail Veit I'm a newbie like you, but I don't see a downsize to house hacking now as you likely could find a situation where you're still paying little to no rent if you do it right. Plus, then you're in the game and have an asset that is appreciating and a loan being paid down. You can still swing by your parents place for the occasional free dinner :) Kudos to you for starting so young.

One thing to keep an eye on is how many companies loosen telecommuting policies post-COVID. I live in CA and am looking to leave hopefully once a daughter finishes high school. I have many, many coworkers who are waiting to hopefully hear that our company will shift to 100% telecommuting, in which case they all plan to leave the state. I'm sure there are many others like this.

Thanks, Phil. I'll give them a call and see if I can get a quote.