All Forum Posts by: Nicholas L.

@Devin Nellany

hello.  i don't think there's a single answer to this.  you should invest where you personally can be successful, and that does not mean automatically buying where the market is "cheaper."  a lot of new investors have picked a market they know nothing about solely because of price, and then totally and spectacularly failed.  

so, should you start with a random property in a random state, in a market you don't know, and with a team you've never met, and buy a random property there that someone else recommends to you, where everyone else (agent, lender, title company, PM, etc.) gets paid by you on the transaction, and you then lose money?  no.

i think starting with a house hack is the best way to begin investing, period.  and nothing says you can't house hack AND look into another market while you do so.

hope this helps - happy to dialogue further / answer any questions you have

@Alex Koester

hmm - i don't recall a lot of posts that talk both about buying a primary residence, and asking about CRMs.  interesting!

i would be careful about buying an investment property first.  while it's certainly an option, sometimes we see new investors think that they'll buy an investment property, and then use the cash flow / proceeds from that property to help bolster their ability to buy a primary residence.  this will not work.  

new investors consistently underestimate how expensive investment properties are in the first few years.  no cash flow or income will be generated for years - and so this could potentially set you back in terms of being able to afford a primary.

as for what features you want in a primary - that's all up to you. just don't buy the hype about investment properties.

CRM - since you have 0 properties, i wouldn't worry about this yet.

hope this helps.  happy to dialogue further or answer any questions you have.

@Jay Hinrichs

totally - was just picking a random example from the thread. i invest in Pittsburgh and if you call me, I'll try to talk you out of it.

@Christopher Arana

blunt answer - 100% no.  way too much risk for a new investor.  full stop.

just save up enough until you can house hack.

then house hack several times in a row.

by the time you're 30 you could own a sizable portfolio if you're willing to put up with the inconvenience of moving every 2 years.

there's no easy right now in RE.

hope this helps.

@Jonathan Greene

I'm still on here to help new investors not lose 100K in Memphis.

Invest in Tampa or out of state

@Alec Strahl

you seem to be asking about buying a primary residence in Florida, versus buying an investment property out of state.  it's hard to compare those two things, since they're so different.

with that said, a lot of new investors have overly optimistic expectations both about how their first property is going to perform, and about the ease of buying in a far-away market that they don't know anything about.  it's not clear to me how spending your hard-earned down payment money on a random out of state property will benefit you.  you will not make any money in the early years of ownership - none.  5-7 years would be a stabilization period and it's only after that that you might start replenishing those funds.

for example, here are some cautionary tales from other folks who rushed into a "better investment" out of state:

https://www.biggerpockets.com/forums/48/topics/1242392-rough...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

https://www.biggerpockets.com/forums/432/topics/1231840-sell...

https://www.biggerpockets.com/forums/311/topics/840134-memph...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

finally, buying a primary residence and looking into an out of state market aren't mutually exclusive.  there should be lower down payment options available to you for a primary while you continue to explore other markets.  i'd pick one that's as close to you as possible, whether that's an hour away or a few hours away, and really get to know it first.  patience is key here.  if you rush into dropping that 100K on something just to "do a deal," everyone else involved will make money on the transaction and be fine no matter what, and you won't.

hope this helps - happy to dialogue further

i'm on here not to cheerlead, but to help new investors protect their savings

@Nicholas Vialpando

if not in your immediate area then within 1-2 hours

@Kenadi Defio

hello and welcome.  yes, that's typical, but i think you're right to point out that that is a major outlay and a lot of capital.  and with prices and rates high there is effectively no cash flow right now on small residential so the return is typically very low and in my opinion, does not justify the purchase.

i will only buy on BRRRR or seller finance, as I can't leave that much capital just sitting in a property. BRRRR is very challenging right now but still a possibility.

hope this helps.  happy to dialogue further / answer any questions you have.  i'm based in Pittsburgh.

@Jayson Magee

not sure what your question is exactly but, you should not buy a primary from a wholesaler.

@Alex Johnson

Hi Alex - I know this doesn't answer your question, but if creative finance is an area of interest for you, I'd focus on seller financed deals and not sub-to.  Similar structure to sub-to as you probably know but significantly lower risk.  I've done a couple and am looking for more.