All Forum Posts by: Nicholas L.

@Adan Caballero

start with a house hack

@Kira Ligon

echoing what others have already said - you shouldn't pick STRs because of "cash flow." they're completely different than an LTR - you're either interested in and willing to do what it takes to have a high performing STR, or you're not. in either case, I'd stay as close to where you live as possible - more than a couple hours is usually too far.

and, as you continue to read and research, i would also encourage you to set your expectations regarding "cash flow" conservatively.  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.  having the rent in a month occasionally exceed the expenses in that month is not actual net income.  the first few years of ownership will be INvesting - as in, you putting your 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.

the real benefits from LTRs are all of them together.  we see so many new investors wanting "cash flow" on day 1 and that's not actually how this works.

hope this helps - happy to answer any more questions you have

i say all this not to be discouraging but just to be realistic about what to expect.

@Marcus Auerbach

hello and welcome back to this thread!  agree with you.  it looks like we'll have fairly robust household formation for the next... 15ish years or so.  and then it gets more heavily dependent on immigration.  but in almost any event probably much lower than today.

this is one of the few things i've used ChatGPT for - asking it to make predictions on rental demand 10-20 years out from now.  does that inform my decision making now?  ...not really.  but it's interesting to get ranges of projections on appreciation, rental demand, and potential rents.

it probably continues to make the more desirable areas more desirable and the less desirable areas less desirable.

@Kyle Remick

welcome.  I think Hagerstown has a lot of potential.  can you start with a house hack?  that's the best way to get started.  happy to help you in any way i can.

@Jorge Caceres

hire a PM and have them lead

@Chris Seveney

thanks!  yes, there are a few threads going now where the OP is using AI, as are the responders.  is anyone getting anything out of it?  seems odd to me.

@Christopher Rubio

just like @Travis Timmons, i am going to chime in (since you have a bunch of overlapping threads going) and then i shall also go away.

out of state BRRRR is spectacularly high risk.  if you can fly to your chosen market every week and oversee your project in person in the city where your uncle lives and you went to college, that's one thing.  if you're going to try to Internet it... that's another. 

in Pittsburgh, for example, you can buy a $100K property in an OK area.  but, you need to know where to buy, and it's going to need a rehab.  how do i know this?  because i am working on one right now.  i go there every other day to check in on things and keep things moving.

Travis and I are trying to cut through the cheerleading and actually help you.  the market is terrible right now - this cannot be overstated.  there is so much demand that returns have been compressed.  this is the cold truth: unless you have all of the pieces in place to be successful, you're probably better off just putting your money into a savings account.

hope this helps.  good luck.

@Jordan Epping

here are my two reactions - just going to be candid since you're asking...

1. you're asking very basic questions - you need local professionals to help you.  answers on an internet forum are not something you'll be able to rely on if something goes sideways.

2. that's a tremendous amount of cash to put down.  setting aside the risk of sub to for a second, what is your plan?  i don't see how the return could possibly be worth it unless i am missing something. you could put that in a savings account and make a much lower risk, higher return.

hope this helps

@Corby Goade

...provided they're in a position to do so.  if you have $40K to your name and that first property is going to cost you $40K then you're not well capitalized enough.  i know you know this, just throwing it out as a reminder to OP =)

@Don Konipol

@Jay Hinrichs

fewer market crash related threads now - am I right?

and I remain at least somewhat sympathetic to new investors who started with old content and are getting smacked in the face when 2016 content meets 2025 market conditions.

somewhat =)