All Forum Posts by: Mat Garcia

Quote from @James Wise:

Lol bro calm down. The global population rate is not going to make or break some dude on Bigger Pockets buying like 4 houses lol.

Like I said, I know this is a "big picture" question. I realize my own investments are a "tiny picture" issue. :-D

I appreciate all the feedback here from everyone who replied! I just realized there was a similar thread not long ago, so I guess I'm not the only one thinking about this! But certainly the shift in perspective into how more local issues such as local economy and jobs can have a greater effect on an area than a national or global issue is enlightening.

They say that all politics is local. Perhaps it would be true to say that all real estate investing is local, too!

I'm interested in hearing more...

What is the investment amount and time? How does this work?

Quote from @Drago Stanimirovic:

...Being a few hours away isn’t a deal-breaker, especially with a property manager in place.

Would it be possible/practical to manage remotely, being that it is just a few hours away?

Quote from @Robert B.:

Where exactly in central Florida are you seeing positive cash flow with “default down”? May want to check your numbers..

You may be right. I thought the "Monthly Cash Flow" amount from the rental income calculator took into account all other expenses, but I see now that it does not. Apparently I just have to subtract other expenses manually (at least without a Pro account).

I'm in! (Well, maybe not- I'm not a Pro member or interested in the trial just yet.)

Obviously, the global human population is still growing. But with people having fewer children these days, especially in developed countries, sometimes below the replacement rate and increasing issues in fertility, etc. possibly due to environmental contamination, etc... Doesn't this mean that eventually there will be fewer people, thus less demand, resulting in less property appreciation, or worse, a decline in property value?

I believe there was a podcast episode about the baby boomers aging and dying that touched on this and of course, we've all seen areas that have had local population shrinkage and real estate values have plummeted. But could this become a much more widespread phenomena in the next decades? And what could one do to mitigate any such effects?

I realize this is a very "big picture" question, but I do wonder if it could have a significant effect on one's portfolio (meriting a change in investment strategy) and real estate in general in the coming decades.

Quote from @Robert B.:

Where exactly in central Florida are you seeing positive cash flow with “default down”? May want to check your numbers..

I'm looking mostly in Polk county.

I bring up the rental property calculator, and as I’m in South Florida, it shows that nothing cash flows but incorrectly priced properties or unless I significantly increase the down payment to the likes of 80K or 100K. But bringing up Central Florida shows cash flow at the regular/default down payment amounts. I’ve asked before about buying in a different state and have gotten mixed responses. I am waiting for next month to see if a full time position opens up at my work, which would significantly broaden my mortgage/loan possibilities.

Some of my stock positions have gone down, so I consider those funds inaccessible for now. I’m not buying any more risky stocks and am trying to transition everything else I can in my stock portfolio into cash or equivalent. I figure that right now I have about $100K available if I were to liquidate what hasn’t gone down significantly.

If my job situation pans out, I am thinking about making a move to purchase a couple of properties in Central Florida rather than South Florida. I think even paying a property manager would allow for cashflow (obviously I would check before buying any specific property.) In South Florida, though I could self-manage, I would probably only be able to purchase one by using most of my accessible money. I figure that though far away, Central Florida is not another state, and I could be there in 3-4 hours if needed. We even have the Brightline train as an option here.

Could this work and what could I be missing?

Thanks @Aaron Ameen. What you say makes sense. I want to start, but I'm not sure where to. Perhaps its best for me to wait for the increase in income that's supposed to come this year. And I keep hearing property values will crash. But I've been hearing that for years and I am tired of waiting and I seeing the stock market go up and down with my fund money is causing me some stress (not that I'll lose it all, but that it might get locked up for months or even years). I want to start, but I don't want to be reckless.

@Drew Sygit: Thank you for the wisdom... As for the property and tenant classes... I even see spiritual parallels and intersections here... I normally don't think too much of the type of people in a property.... I guess I just use myself as a placeholder for the tenant. I've rented and have always given the place back in good shape and have gotten my deposit back. But I do know that some tenants are disastrous and really wear down or even destroy a place. And I guess one has to take that into account as an extra cost in maintenance or just steer clear of such people. I will reread your Investor Advice again.

@Ryan Irwin: My friend has no experience with managing rentals. I just figured I could do much of it remotely and he could be my eyes on the ground. But maybe you're right. I am a little hesitant to have a long-distance rental, but I don't know what to do with the market where I'm at. Perhaps I would be better off buying a very small/cheap apartment an hour or so from my area and manage it myself.