All Forum Posts by: Lee Ripma

I would think about good airports to be by. I also love outdoor recreation but I invest in KC because I like the numbers. SLC might be a good location for the outdoors and the airport.

@Dong Yan

If a turnkey company is operating in a market, that is usually a good sign that the area is good for cash flow. Lookup the top 10 markets for cash-flow and think about areas you might have trusted friends or family. If you don't have any ties to any of them just pick one you'd like to get to know. The top 10 markets for cash flow will return larger markets. Cash flow is certainly possible in smaller markets BUT you need to get to know the areas and make sure the market is sound. As long as you pick a place where you can build a local team you should do well. 

I've been trying to do this in Kansas City, MO but haven't had much luck with who I'm working with. Let me know if you find anyone good!

@Peter Talbot

I enjoyed the book as well! The catch with what @Kevin Fox is saying is: what you can actually qualify for on a loan? With an income of 75k and a 25k downpayment you're not going to be able to get anywhere near the purchase price of 700k! You'll probably be able to get 400k with FHA. You know where you can get a duplex in SD for 400k? That's right, it doesn't exist! You can't even get a SFH for that. I was interested to know how the book would address those of us living in high-priced markets. I think the take home was, move to an area where you can house hack. The other option would be to buy rentals out of state, which is what I'm doing. Since you can work remotely you could be at your rentals to over see their renovations. You could also just move to a lower priced market but you likely have reasons that you don't want to do so. If you don't, it's a consideration. I am investing in Kansas City and I LOVE it here! It's not crowded, it's so cheap, and it's charming!

There is an article on BP that goes through valuing commercial RE (the math). Get the value based on current rents and projected (pro-forma) rents. Then think about your goals and also about the area. Then post again with your analysis in relation to your goals and people will be able to give you feedback.

@Teddy T.

Sounds like you've got a cash-flow goal, which is a great start. There might be markets near to Las Vegas that are good for cash flow, you can do some research and see. 

My thoughts on a TK SFH with such huge goals, why bother? If you've got a lot of capital and you want to be passive you can make good returns providing capital to others. Many apartment syndicators will offer 10-15% returns over 5 years. You can also partner with others to provide capital for their flip and development projects. If you want to acquire your own properties I'd just go bigger with commercial right away.

Best of luck!

Lee

@Jason Fike

I have nothing but problems with Shelter, I'd try RE guard. 

Hi Alex, I know if you're in CA and you have out of state properties you still need to have your LLC in CA. However, I'm not sure if this is true for where you are. I'd ask an attorney not a CPA. Best of luck! Lee

Nick Gupta I'm also just getting started but have done my first deal (6 units-duplex and fourplex) and am looking to my next. I have similar cash flow goals and am looking for a 6-20 unit apartment in Kansas City as my next deal. Once I did the first one I realized how much sense it makes to do value add commercial multifamily (5 + units) so am focused on that. I think you can reach your goal w the capital you have but you might need to do a few deals. I'm happy to talk over what I would do to achieve your goals (since mine are similar). I'm only offering to help, I don't have anything to sell! So PM me if you'd like to chat. Best of luck!

Good luck! I think it's awesome that you're jumping in. I've been hiring out 100% of the work but I was just thinking today that I should go work alongside the guys I have working. They will probably hate it, but I'm signing the checks so they'll have to put up with it. I think it would be beneficial for me to know what it takes to do the work so that I better understand costs for different tasks. I want to move on to value-add apartment investing so would like to know costs for install on the final apartment trims. Anyway, best of luck to you!