All Forum Posts by: Layne T.

@Sean Lindbloom

This map is a great starting point of desirability in neighborhoods:

Also recommend you reach out to Peter Stewart - he was awesome for me to deal with as an investor (and he invests himself as well): 

https://www.peterstewartrealty.com/

Good luck!

@Jeffrey Waldron
As you have the house paid off, you likely won't struggle for cash flow vs. someone buying something brand new in LA today as a rental.

At your price point, you likely won't have people 'trashing' the place either. 

As far as 'landlord issues,' because you live local and can always verify anything/repair-wise, also not a huge issue. Worst case, if you don't want to deal with a tenant at all you can find a good property management company for 8-10% of monthly rent, but probably not necessary.

Go for it, and keep the house for future appreciation. 

@Jeremy Davis - where can you + wife earn the most money and save the most money over the next 6-12 months. That's the # 1 question. If it is LA, then stick it out while continuing your research and learning. Get an amazing real estate broker and property manager setup in Vegas (hint, search these forums for the top recurring 2-3  names in each category, call them, chat with them, build a relationship). You're getting yourself 'ready to pounce.' Get a pre-approval letter going from your lender. No lender yet? More research/relationship building to do.

It is possible that you do the 'buy as a rental before you move' first as Bill mentioned. And that's ok. Because in 3-6 months, you may see a good (even if not great) discount on the properties you're looking at now.

The hardest thing to do is often wait...but if you save even $10k on a purchase price and a few thousand more by staying here vs. there, seems well worth it.

Good luck and congrats on taking the steps you've taken - 

@Kaitlyn Nesbitt
One other thing to keep in mind - there's no one 'golden' market you have to invest in, and often people pick different ones for various reasons. All the good markets 'should' usually give $200-300 per door on a basic deal at or above the 1% rent-price ratio.

I chose mine (Indiana) because I knew the agent - friend moved from LA to Indiana and pushed me to buy something. 

Others choose a market they may one day see themselves living in/retiring in, close to family, etc. All the research will keep popping out the usual suspects, but part of it is also going to be based on your team there. Interview agents and property managers, see if they educate you vs. sell you, see how comfortable you'd be with them. 

A lot of people like to stay in the same market, economies of scale with the team on the ground. Others like to diversify sooner than later. No right answer, it's what works for you.

If you want a referral for a great podcast, Norada Real Estate / Passive Real Estate Investing is awesome for beginners. They do turnkey which I didn't do, but educational nonetheless.

Good luck!

For something like this, I'd also recommend paying for a 2nd company (minimum) to do another camera scope.

Once upon a time, a company did a scope on my first rental (pre-purchase) and asked for $6k to fix what they said were tree branches stuck in there. I paid for a 2nd opinion, turns out it was just hair and there was no issue. There are some crooks out there.

I see this all the time, people pay out of pocket for a home inspection and think it's enough, and try to not do the $150-200 camera scope on the sewer line. $10k later, you'll wish you would have done it. That could be 3-4 years cash flow!

3/2 Rental in Indiana a few years ago. Still have it, and one important lesson that may not be emphasized enough in this thread is a great property manager will make or break you, especially with an out-of-state rental. 

My mistake - went for the cheapest monthly rate for property mgmt company. What you think you'll save, you'll end up paying in excess repairs/maintenance, especially if they charge mark-ups and you have no transparency on actual cost to handle the repairs. Communication will seem like a chore.

After a year, I went to another prop mgmt company that charges a higher rate (it's minimally higher), and couldn't be happier.