All Forum Posts by: Quentin Jivery

I meant 'heck of a time' as in hard time

@Zach Wagner

I think all-in at 100K is going to be tough. If it were easy to push the button to do a BRRRR in Ohio or Indy with 100k we'd all do it. I'm trying to do LOCAL BRRRRs in PA and having a heck of a time! =)

Where are you located in CA?  Are there any markets within driving distance you can start in instead of rolling the dice thousands of miles away?

My biggest mistake - overthinking! I still do it! Fear will try to stop you! DO NOT LISTEN! 

Budget a boatload for capital expenses in the beginning and budget less per month in repairs and capex. I did the opposite, I was so conservative with my rents and monthly expenses but I was super aggressive with how much I would have to pay up front in fixing the property. If you buy a nice property you shouldn't have to spend too much per month... and it should rent for the market rate.

Hey there everyone! I'm a newbie to real estate investing and I have been stuck in analysis paralysis. I've been trying to gain as much knowledge as I can before pulling the trigger on a property. I live in CA and I'm looking to invest out of state. I was wondering if anyone knows of good cities to BRRRR in this current market. I'm looking for properties in the B or C class neighborhoods. Primarily single family homes (all in purchase + rehab around $100k). My main focus is cash flow but I would love for the property to appreciate over time as well. Thanks in advance, any advice or insight helps.

Almost every new investor (and many seasoned investors) don't budget enough for repairs. They often skimp on due diligence (don't look for wood rot, don't scope the sewer line, etc.) but almost always just budget not enough. We always include a 20% contingency for unforeseen items and that has served us well. I would recommend the same.

Networking with other likeminded people can be a really good source of properties, in addition to cozying up to a few realtors. Some brokerages will have distressed housing lists that they can opt to share with investors if they work with REO companies. Driving for dollars with targeted direct mail campaigns is great for starting out.

 I echo the other contributors to this thread. Underestimating time invested, costs of rehab, and level of personal involvement are my three key takeaways from my first. It's set me back about two years, but not for nothing.

MLS is great if you're looking to pay retail rates. Right now is not a bad time to pick up listings that have sat for 1-2 months as sellers had made the attempt at projecting pricing 2-6 months out when listing and are finding the market cooling. Driving for dollars is something I am looking at for my next purchase, building a database of properties I'd purchase and peppering them with marketing materials. It's cost effective, but time intensive.

The farthest I've ever invested was a 25 minute drive away from where I live, and after that deal I decided that was too far for me. Nowadays everything I buy, rent, sell is within 15 minutes from where I live.

I know others who have success investing out of state. I have a friend who is buying rentals in St Louis and he's doing really well. It's just not for me. I prefer to buy where I intimately understand every single variable of the market. Buying out of state you need to be extra careful not to accidentally buy "on the wrong side of the tracks"

If you are going to pick any of those markets you've listed, the only input I can provide is that you should book a flight out there and spend a few days with your own 2 feet on the ground prior to investing your hard earned money in the market.

Jessie,

Getting started in the real estate world can be extremely daunting at first, but it takes time and the willingness to jump in. I think it would be worth your time to look for successful wholesaler groups in your area first and ask to work for them. Learning a strong system that is successful has it's benefits! Also, you could get your real estate license and jump in looking for deals. That's what I did, and it's led me into the commercial space. 

Feel free to message me directly with more questions. If you already have a license and just simply need a brokerage that offers tons of training and a mentor for a new agent, you should look at eXp Realty. Here's a link to join. Cheers!

1. Underestimated rehab costs

2. Underestimated how long it would take to rehab

3. Overestimated the ARV

(still ended up ok in the end, and learned a ton)