All Forum Posts by: Nicholas L.

@Lucas Dickow

no offense but it sounds like you need personal and local expertise for this, like an agent and/or attorney - not random Internet responses.  i'd try to get that ASAP.

good luck.

@James Hamling

agree with you 100%.  i think i've said this in other threads, but the problem in most cases is that new investors are undercapitalized, and so they need that illusory "$200 a month" in cash flow, or they won't be able to support a portfolio, and they end up having to sell.  you've seen the posts just like i have - new investor buys a property, which may even be in a great area, and they need to replace the furnace in year 2, and somehow that ruins everything for them.

if I can BRRRR something and get all my capital back, then exactly to your point, i'm not particularly worried about whether my monthly "cash flow" is -$118, or $0, or +$72. i get all the other benefits of ownership. i'm focused now on minimizing my net outlay into each property rather than "cash flow."

@Sushil Gupta

should you invest in a market you know nothing about and have no network in?  no.

@John Nocera

Hi.  Still around?  I'm happy to try to talk you out of this if you are =)

@Justin Smith

if you can afford to house hack, house hack.  beyond that, i don't think you're well capitalized enough so i'd continue to learn and save.

@Jacob Bremer

you got a bunch of AI responses.  i'm a real person, with real questions.

you mentioned 70K for down payment and reno. would you then refinance - making it a BRRRR - or does your 70K just sit there?

if the question is "should I shell out 70K to be negative every month forever" then i'd say - no, i don't see how that advances you financially.  but if i am missing something let me know.

my goal is to break even with as little net outlay into every deal as possible.  if i have to put 20+% down and then just have that stuck in a property i won't do it - the returns don't justify it and i don't have the capital for that.

hope this helps.  happy to dialogue further.  

@Benjamin Dolly

hello.  I have good news and bad news for you.  The bad news is that the market is genuinely terrible for new investors right now.  That doesn't mean you should give up, it just means you should be cautious.

and the good news is that you don't have 'analysis paralysis.' that's a made up condition by the people selling the things to get you to buy the things.  because they make money even if you buy a bad deal.  and so, there's no reason to buy before you're ready.

(can you house hack?  if you already have a primary residence, or your lifestyle doesn't permit it, that's fine.  but i always have to ask because house hacking is such a great way to get started.)

OK.  on to out of state.  if you have limited capital, should you buy a random property thousands of miles away, just because you found BP and now have to do a deal?  nope, nope, nope.  again, the market is tough right now for just about every strategy, with prices and interest rates high. and for LTRs - there isn't any cash flow initially. none. 

the first few years of ownership of an LTR will be INvesting - as in, you putting your hard-earned money into the property. you may know this from having a primary residence, but even purchasing itself is expensive as you have to pay a bunch of closing costs out of your own pocket.

so, i vote for building initial capital and also trying to stay closer to home even if it's a couple hours away.

how out of state investing can go if not done properly:

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...

hope this helps.  i'm happy to dialogue further / answer any questions you have.  i've done a bit of everything at this point and i'm on here to help new investors not lose money.

@Erica Davis

Hi Erica.  I'd go meet with anyone you're considering in person.  It has to be worth the trip if you're going to spend hundreds of thousands of dollars on a property.

Hope this helps

@Benjamin Nitz

I'd hire an attorney

Worth the money to do it right

Good luck

@Carlos Velazquez

I would not try to wholesale on-market properties.  High difficulty / high risk / makes no sense

Good luck