All Forum Posts by: Matt J.

@Sam Torvinen thanks Sam! We gotta catch up again soon, maybe a Zoom call?

Don't buy into the hype on TikTok or Instagram. I've heard stories on a few different podcasts of these "influencers" renting Lamborghinis and Private Jets for an hour to take their pictures and videos, post it to their page and act like they own the stuff when they don't. Dropshipping is a viable business (tons of competition though) if you have the right business plan and everything, but it doesn't build you wealth. 

Real estate can build you wealth over time so while it isn't a get rich quick scheme like dropshipping, it's got more upside long-term. I would recommend you work for another investor or property management firm to learn the industry and take that information to help you build your own business. On top of that, figure out a real estate investing niche you want to focus on, and learn as much as you can about it through podcasts, books, webinars, etc. Define your goals, work backwards from there and work your plan. 

Best of luck!

Welcome Jeff! I invest in Duluth as well. I live down in Hugo, near White Bear Lake and utilize Heirloom Property Management to manage my properties for me. They do a great job. I can DM you some recommendations around your team you're looking to build; BP doesn't seem to like when you post referrals in the forums. 

BiggerPockets has been a huge asset for me. Go for the pro version, it's totally worth it. Have you thought about which areas of Duluth you want to target? Lincoln Park, Central Hillside, Gary/New Duluth, Morgan Park are all cheap to get into, but not without their headaches. College rentals are what I'm focusing on more after starting in Lincoln Park/Hillside. But single family in nice neighborhoods like Lakeside or Chester Park could be solid too. It's important to pick a strategy, neighborhood, and property type, develop criteria around that and stay focused on that until you get a few deals. 

Let me know if you want to connect and talk Duluth. I went to college there and was in the 148th Fighter Wing, so all told spent around 6 years total and have a pretty solid network up there. 

Hey BP, I've posted on here before a bit about my journey. So far we have 4 properties in a market a couple of hours away and to scale, we need to pivot from regular buy and hold (20% down payment, not a ton of value add) to BRRRR with hard or private money.

I know there's a lot of people out there who grew their portfolio to the point of financial independence using the BRRRR method and I think it would be fun to hear people's stories about how they did it. Both for my own encouragement and the encouragement of others.

I'm not a tax expert, but even without loan interest write-offs, you can still depreciate the home and see tax benefits there. Talk to a CPA about the income taxes. 

So far I don't see anything wrong. You're bringing in over $600 a month in cashflow on a property you own free and clear. 

The biggest questions I have, are do you have a strong property management company in place who you've vetted with multiple people, and are you setting aside enough in expenses? 

@Jean-Luc Lacosse

Duluth has been getting a bad rap for stagnant growth and their economy a long time, and rightfully so. That being said, look at this article. https://m.startribune.com/sold-twin-cities-homebuyers-spurring-a-run-on-homes-in-duluth/572536741/

With more and more people working remote, I think there could be even a little more demand for housing long term.

Are you set on flipping? Or have you thought about buy and hold?

Nice work Jean! So if you do include maintenance and other expenses, what would it cashflow? I would guess you'll want to use the cash flow at some point, right? That is a great goal! Are you buying in the NYC area or where do you invest? 

Such simple advice but so stinkin' true. Thanks a lot for the reminder and tips @Cassidy Burns! Re-writing that goal definitely has helped me in the past. 

@Bill Goodland thank you sir. Building systems is the biggest hurdle for me as I'm a pretty unorganized, fly-by-the-seat-of-my pants person by nature. But I've recently read the E-Myth and am currently reading the Checklist Manifesto, and both of those books have given me some good frameworks to work with and I'm implementing those ideas into my existing portfolio and will translate that to scaling, like you said. BRRRR definitely seems the best way to scale to me.

Thanks for your input! 

Hmmm that sounds like a good spot to invest. Makes sense about the flow of people from SF with all the COVID stuff. Looks like rents in Marin County are around $5,000 a month for a 3-bedroom house, are there places that rent for higher than that to get to the $5,000 in cashflow you mentioned? Yeah the caliber of tenants in the area seems to be stellar. 

Thanks for the input.