All Forum Posts by: Nicholas L.

@Greg R.

Serious question for you - what is your definition of "crash"?  Is it... the overall median US home price going down 10%, or 20%, or 50%?  Or... 20% or 50% declines in one or more large markets?  Or.... something else?

I certainly don't think a correction is impossible... nor do I think that prices will only increase... but, I'm personally a little confused about the whole market and honestly, not sure what to expect =-) prices are now SO MUCH HIGHER than they were even 5 years ago that a major "correction" would still leave them above that high watermark.

What do you think?

@Eric W.

I'd find a market in Texas that you can drive to - 2-4 hours

Easier to build your team there

Go to REIAs, network, meet agents, look at properties, talk to everyone

@Chris Seveney I'm not saying syndications aren't a great option, I'm just saying they're generally not a good option for first time investors.  Or at least, it's probably difficult for a first time investor with no experience and no contacts and no network to find a reputable one.  Thoughts on that?

I totally agree with you that many people lose money in RE.  That's why I think first time investors should house hack, and generally not do anything else.  

@Leonard Qendro

why not just each purchase your own house hack separately?

@Chris Seveney

Your posts are usually great, and your advice is usually awesome!  But why would a new investor want to put their life savings into a syndication?  And how in the world would they find a reputable one without a network?

@Randy Griffin

House hack!

OP seems long gone... wonder if he got anything out of this =)

@Jared C. do you have the funds for a down payment on an investment property?

@Stefanie Bergmann

And... on top of your cash flow... that $353 in equity that you just got was paid by your tenant.

@Elizabeth LeBlanc

I always recommend that if at all possible, new investors start local, not because there is anything intrinsically different about the real estate in other states, but because it's easier to build a team / network / go to REIAs / meet agents / talk to PMs / go visit properties in your own neighborhood than 2000 miles away.

And, if what you're saying is "any random property listed on the MLS doesn't work as a rental when I run the numbers conservatively" - yep, that's the case in many, many markets right now due to low inventory, increasing interest rates, investors willing to accept lower yields, etc. You might have to change strategies, look for off-market or value add deals, look in different sub-markets 2 hours away, wait for that occasional gem to hit the MLS and move on it immediately, etc.

Hope this helps!

@Micah Lundstrom

I don't know the market at all... but I suspect it would be better than trying a monster BRRRR as your first deal