All Forum Posts by: Noah Fele

Wow I am incredibly grateful for this community! Many of you shared your ideas and advice here and some of you reached out directly to me. I have since been talking to members in different markets and feel supported and encourage. I also have been reading a ton and learning a lot.

I have been between interest and analysis paralysis for the last 3 years but now that I've engaged the community I finally feel ready to take the plunge and as Terra said I'll make mistakes along the way, learn and refine my approach.

Having said all of that, I have since adjusted my strategy to go from turnkey cash flow to BRRRR so I can increase the velocity of my cash. I'm now getting my finances ready and starting to connect with folks on the ground to start to find my first deal!

I will certainly be reaching out many times going forward and hopefully with tactical questions as I start to get going.

This is my long winded way of saying thank you all!!!

Thank you all in helping me continue to refine my strategy! Given that I'm giving myself up to 6 months, I will certainly keep looking in the DMV area to stay as local as possible.

I'll talk to several agents to better understand their approach to deal sourcing (handpicked vs auto filter) and whether working with them is likely to yield a deal. I'm ok starting with MLS and getting an "ok" and not "amazing" deal for my first investment. Once I get my feet under me I'll start exploring these other deal sources you're recommending.

For the calculator, I came across DealCheck last night and I can certainly build one in Excel myself (I'm pretty decent with Excel).

On the criteria being at odds, I haven't thought about it this way but now that you mentioned it yes it makes 100% sense. I suppose high growth and low unemployment go together and opposite to median price. Given that the general guidance seems to be pick a good location, I suppose I will have to see where the median price is for such locations and use that to come up with a different upfront cash target even if it means take a bit more time to save up some more cash. It's hard for me to go to another city for a few days but what I can do is pick cities where I have close friends so I can rely on them to get insights into what neighborhoods are really like.

Lastly, totally agree that this is not truly passive investing. My investment strategy today and prior getting into real estate is truly passive. This will certainly be a lot more work than what I do today. Perhaps I should refer to it as investing for cash flow as opposed to passive investing.

Your feedback and input is gold so please keep them coming.

Much appreciated Jeremy for the thoughtful response. Unfortunately, I’ve never seen anything workable within a 2 hour drive. Once Inget outside that 1.5-2 hour drive those markets are unfamiliar to me. Even those markets, there’s nothing that comes close to the 1% rule. Best I’ve seen is 0.6%. 

I love the example questions to ask potential property managers. Will sure to ask those and add a few more like them. 

for deals, I’m hoping I can get RE agents to send me a flow of deals and I can run the numbers on the BP calculator. Would love any tips and guidance to do this part more efficiently. 

Hello BiggerPockets community,

I'm thrilled to join this forum and seek advice from experienced real estate investors. Here's what I've considered so far:

1. Markets:

Local Market: I live in the DMV area (DC/MD/VA) which primarily experiences appreciation, making it challenging to find cash flow properties.

Out-of-State Priorities:

       - Price Below National Average: I'm prioritizing markets where property prices are below the national average.

       - Positive Population Growth: Markets with growing populations tend to have increased demand for housing.

       - Low Unemployment Rate: A stable job market is crucial for tenant stability.

       - Rent-to-Price Ratio: I'm looking for areas where rental income justifies the property price.

2. Potential Markets:

 I'm currently researching the following markets:

       - Huntsville, AL: Low unemployment rate and steady growth driven by large aerospace and defense industry.

       - Columbia/Greenwood, SC: Affordable properties and potential for cash flow.

       - Cheyenne, WY: Small market with stable economy.

       - Syracuse, NY: Decent A education and growing tech industry.

      - Open to other markets that I should be researching       

3. Property Types:

I'm considering mainly 3bd/2ba in the following property types:

       - Single-Family Homes

       - Townhouses

       - Small Multi-Family (1-4 Units)

4. Starting Small:

   - I've been interested in real estate for years but lacked the courage to take the plunge.

   - My strategy is to begin with an easy deal, even if the numbers aren't optimal.

   - Goal: Gain confidence, understand the process, and get my feet under me before scaling up.

5. Financing and Budget:

   - I’m thinking of starting with no more $50k out of pocket for all upfront costs including the down payment to keep with my “start small” strategy.

   - Considering a conventional loan with 20-25% down 

   - I'm open to exploring other investor-friendly financing options that allow for a lower out-of-pocket down payment but I’m not familiar with what’s available to me 

6. Property Management:

   - Given my W2 job and the out-of-state nature of the investment, I'll have to work with a property manager.

7. Networking and Education:

   - As a beginner, I started to reach out to real estate agents here hoping to find a good match and hoping to expand my network from there

   - Connecting with experienced investors will provide valuable insights.

8. Timeline:

   - I’m thinking 2-6 months will give me ample time for learning and evaluating deals but open to other suggestions 

I appreciate your warm welcome and look forward to learning from your insights. Thank you for being part of this supportive community!

@Russell Brazil are HOA fees as outrageous in Frederick as they are in DC? What kind of monthly cashflow would you get for these condos if you're mortgaging them? I'll browse that market to get a better idea as well

@Cassidy Burns I will definitely be mortgaging the property so the $150k is driven by the 25% savings. Is it correct to assume that folks who are buying in cash are either flipping or targeting appreciation? 

@Russell Brazil I definitely want to stay away from risky properties. From what I read, I think I'll be comfortable with B properties. I was disappointed to see that DC and surrounding neighborhoods are too expensive so I was curious to see how far people go to find cashflowing properties in the $100-150k range. Any experience with going further out than the neighborhoods you mentioned?

@David Fernandez I don't think I'm comfortable with Baltimore given that this is my first property. My sense (I might be wrong) is that you have to know bmore really well and have a bit of experience in RE. Hopefully as I gain more experience I'll feel more comfortable with it.

I live in DC and I’ve been saving up to invest in my first property in the next couple of months. Would love to hear about neighborhoods where people have had luck finding cashflowing properties under $150k. My initial sense is to stay within VA or MD but open to consider further away.