All Forum Posts by: Account Closed

@Doug Smith True! I definitely wouldn't take advice from people who are unrelated to real estate. The doctor seemed to know a little about real estate investing, and it got me worried a little because he told me houses don't sell in the suburbs. 

I'll definitely look into the Florida Suburbs. I'm in Fort Lauderdale currently, and people here seem to do be doing well in real estate. I've also heard people in Virginia doing real estate. One of my friend's parents does real estate there, but I didn't know anything about the Virginia Market, but it looks like they're doing extremely well!

@Mark F. I definitely agree with you that I see other successful people's advice a little more than my own. It's very important to form my own opinions by doing my part of learning about real estate and doing my due diligence. 

As for the doctor, he doesn't have experience in real estate that much but told me based on what he heard from his friends who work with real estate. I'm unsure if they're real estate investors. I'm really glad I stumbled across BiggerPockets. It's amazing how there are a whole lot of very experienced investors to learn from like you! 

Thanks for your insight! 

@Theresa Harris Yes! The doctor has lived in Texas for a little while he was probably in school, but mostly, when I talked to him, he was very enthusiastic about living in the middle of Manhattan with an amazing view as a doctor. 

He didn't seem to like the idea of living in the suburbs because it's not a mega-city and that he would rather live a luxury lifestyle in the middle of manhattan with a few condos driving a range rover. He said living in the suburbs is 'too much work and not a comfortable lifestyle'

I definitely agree with your DTI and mortgage limit. That is something I will also have to figure out in the future.

@Sarah Ware Thanks for the introduction to Tennessee real estate market! I hear a lot from other real estate investors that places like Texas, Tennessee, and other sunbelt states are growing and is a great places for real estate investors/landlords. 

It's also great to hear that there aren't a lot of natural disasters in Tennessee. Down here, we get hurricanes, so the insurance prices have skyrocketed and some homes I know had their roof blown off because of the hurricane. Yikes!

Cabin construction is something I haven't heard that much of, and I will definitely like to learn how that market works as well!

@Alicia Marks Thank you for your amazing insight into real estate for a dentist! I really like your straightforwardness about the doctor wanting "Sexy" properties to brag about! I didn't know that the suburbs were less likely to have a significant value swing versus downtown areas, and is definitely something I would look into when starting to invest in real estate. 

Hearing from active and experienced real estate investors saying that it doesn't take too long to sell a house(unless in a bad market) is very reassuring. I was worried especially about that because a lot of people I know who don't invest in real estate but own homes say that "They heard from friends who own homes in the US and it's not selling quickly." I will definitely have to do some due diligence.

I definitely agree with your views on exit door opportunities! I really love learning about real estate, whether through podcasts(your podcast on BiggerPockets Money was amazing!), books, or newspapers and would not want to work a 9-5. I see real estate as a more efficient way to build wealth than by being a dentist. 

Thank you for your insight! I will definitely love to reach out about my future career, either through being a dentist or real estate or both.

Hi Emily, here are some ways that might help you with down payments. 

First, there are government assistance programs where state or local governments may offer down payment assistance programs. This is if you're a first-time homebuyer, and will help you with purchasing your home. Be sure to check with your local housing authority or state housing agency to see if there are any programs available. There are also non-profit organizations that provide down payment assistance to homebuyers. These organizations provide grants or loans that can be used to cover the down payment and closing costs. An example of these organizations may be National Homebuyers Fund. Also, your employer(if you work for somebody) can offer you assistance as a part of the employee benefits package. They'll usually give you a loan or a grant that you can use for your purchase.

As always with real estate investing, having a fairly large enough cash reserve will help you a lot and will come in clutch when you decide to rent out your place to other people. It's very important because if your roof suddenly breaks, you will have to pay cash to fix the roof, and it's quite a big expense. These are called CapEx in Brandon Turner's books. They don't occur often, but if they break, you'll need a lot of cash.

Lastly, if you’re investing with low money, 'The Book on Investing in Real Estate with No (and Low) Money Down’ by Brandon Turner might be a great help to you!

I hope this helps! :)

@Luka Milicevic Definitely amazed by the speed that you can finish projects! Doing a full gut job in less than 3 months is absolutely spectacular! I'm getting a lot of insightful investors like you that selling homes doesn't take years in the suburbs. Perhaps the doctor only looked at homes that are overpriced. He told me that he heard it from his friends that own some real estate.

It's also great that you mention property prices prior to 2020 doubled in value. I think the doctor looked at bad markets or bad locations. I also heard that TN property taxes are low, and more affordable for renters and beginner landlords as well. TN is wonderful for real estate investors.

Thanks for your insight and rebuttal! I'll definitely do some more research into it! I as well think that a first-time investor going to Manhattan is a lot more difficult than going to places like TN where home prices are going up and are more affordable.

@Becca F. Thank you for your story! I love to hear stories like this. I definitely agree with the HOA fees with you a lot! I've seen investors lose cash flow because of the increasing HOA fees. They're lethal!

Installing LVP Floors and quartz countertops sounds wonderful too. Real estate gets easier to take care of in class-A neighborhoods with good schools nearby. I definitely am looking into the midwest to start, as Manhattan has extremely expensive real estate prices. I would have to save my whole life to afford the down payment😅. As a newbie investor, the midwest sounds like a great place.

I'm definitely thinking of starting out with some small multifamily houses like duplexes or triplexes. If I can qualify for an FHA Loan, that would work out. Also, the taxes are indeed high, and I would thus have to look for ways to reduce my tax, like a live&flip or the 1031 exchange, if possible. Lastly, short-term rentals and mid-term rentals also sound great! I know there's an AirbnBust situation going on, but I've been following experienced hosts like Sean Rakidzich from Airbnb Automated. I'm sure as the boom and bust cycle continues, things will get better.

Thank you so much for your insight! I will definitely do some research and due diligence. 

@Joe Funari Thank you for the insightful information! I will definitely take your advice! I'm very new to the world of real estate investing, and it does look like Texas is a good place to start. It sure is assuring since you said that homes will take an average of 30 days, and the 5% appreciation, plus the no-state income tax helps built wealth through real estate in Texas.

 I got a little worried because of the things the doctor mentioned, but it looks like you know a lot about real estate in Texas, especially being an experienced investor. Again, thank you for your help! It looks like I have a long journey ahead :)

I'm a 19-year-old college student in Fort Lauderdale, Florida. I recently talked to a doctor who is aspiring to live in Manhattan, New York about real estate.

When I asked him about how I wanted to start investing in real estate in places like Texas, Florida, or Tennessee, he told me that there are lots of problems with investing in these non-cities. Instead, I should strive to go to Manhattan after becoming a dentist. Here are some things he mentioned that make investing not possible in these non-city states:

1. Houses NEVER sell in the suburbs. You have to wait 2 years for houses to sell at the very least.

2. Houses don't appreciate. You will pay a lot of property tax, but your house won't appreciate that much.

3. It's better to invest in a condo in Manhattan, New York than get several houses in the non-cities. (Less work for good condos in Manhattan)

4. If the contractors and the workers get injured when renovating or flipping a house, I will be responsible for all their medical bills. Yikes!

5. It takes too long to renovate houses. (More than 1 year)

6. You won't get a lot of mortgages approved, and will hit your limit.

7. Stuff breaks too much in traditional houses, and the landlord usually pays for electricity, water, garden maintenance, etc. Condos in Manhattan sell like hotcakes.

In sum, he told me why on earth would I go to the suburbs for real estate when I can just buy a condo in New York, have it appreciate a whole lot, and sell it for a way higher price? Although I would be paying more tax in New York, houses appreciate a hell of a lot faster and sell faster. If I invest in the suburbs, I will end up with non-appreciating houses in Texas or Florida, have to fix things all the time, and never be able to sell a house quickly enough.

I read a few books by Brandon Turner, Josh Dorkin, David Greene, JL Collins, and other authors, and it seems like a lot of people I know make a lot of money by investing in the suburbs, but does anyone have the information they would like to share on his views?

Keep in mind that this person I talked to believes that the only 'city' in the US is Manhattan or perhaps Los Angels in California. He thinks that other states like Florida, Texas, and Virginia are all the countryside with not a lot of big buildings where things are very very far apart. He made me think a little hesitant about pursuing real estate investing in the Suburbs, and I would like to know more about this situation!

I'm open to any feedback or criticism!