All Forum Posts by: Arman Ahmed

@Christopher Costea
Consider exploring out-of-state real estate for your Self-Directed IRA. It offers diversification, access to new markets with potentially lower property prices, and opportunities for higher returns. Be sure to research market trends, local regulations, and property management options, potentially hiring a local professional to manage your out-of-state investments.

@Boddupalli Sai Praneeth

You've got some potentially underestimated renovation costs.
Boiler: $5,000 might be low. Average replacement cost is around $5,900 but can be higher depending on the type and installation complexity.
Roof: $10,000 for roof shingles seems plausible, as typical ranges are $6,000-$9,000 for standard roofs.
Forced Air (Central Heating & Cooling with new ductwork): Your $18,000 estimate might be insufficient. Installing central AC typically costs $4,000-$12,000, and adding new ductwork can cost between $2,100 and $4,000 extra. In older homes requiring significant demo and repair for duct installation, costs could be even higher.
Basement Suite Conversion: $10,000 for a new kitchen and bedroom is likely an underestimate, with basic kitchenette installation averaging $15,750, and adding a bedroom can add significantly more.
Appliances: $7,000 might be acceptable for basic appliances, but higher-end options will push the cost up.
Important Considerations:
Higher Down Payment & Interest: Be aware that investment properties typically require a higher down payment (e.g., 20-25%), and interest rates are often higher than for primary residences.
Cash Flow vs. Opportunity Cost: While saving rent is a bonus, focus on the overall profitability of the basement suite (income minus expenses).
Market Fluctuations: Research local rental rates thoroughly to ensure the estimated $2,400/month is realistic for a basement suite in that location. Consider the potential for cost overruns during renovations and delays in finding tenants.
Seasoning Period: You'll likely need to wait at least six months after the purchase before refinancing the property.
Given the potential cost increases, get detailed quotes from contractors and consider a larger contingency fund. Consulting with a seasoned real estate investor or financial advisor specializing in investment properties can be valuable before committing

@Joshua Piche

Negotiating with current tenants paying below market rent involves several strategies:

1. Direct Negotiation: Discuss potential rent increases with the tenants, considering their long tenancy and the month-to-month lease status.
2. Cash for Keys: Offer a financial incentive for the tenants to vacate voluntarily. This can be a quicker and less confrontational approach than initiating an eviction.
3. Gradual Increase: Consider a phased rent increase to market rates over a period, acknowledging the tenants' long occupancy.
4. Assistance with Relocation: Offer resources or help with finding new housing, including a positive reference or referrals, to ease their transition.

@David Fals

Here's how to maximize your chances:

• Dive Deep into Neighborhood Data: Go beyond city-level data. Research specific neighborhoods for rental demand, vacancy rates, and rent trends using tools like Zillow, Rentometer, and local MLS data [1].
• Target Off-Market Deals: Network with local real estate investors and build strong relationships with local brokers to uncover properties not yet publicly listed [1].
• Thorough Financial Analysis: For any potential property, meticulously calculate potential cash flow, capitalization rate (cap rate), and return on investment (ROI) [1].
• Plan for Remote Management: Identify local property managers, handymen, and contractors, and leverage technology for efficient tenant management and maintenance if you'll be managing remotely

@Paul Richardson

Welcome to the forum, Paul! Great to have you joining our community as you venture into real estate investing. Smart move expanding your focus beyond Phoenix to find the best opportunities.For your market research, dig into local job and population growth, as well as rental demand and affordability in any potential investment area. When building your team (contractors, lenders, property managers), start by networking at local Real Estate Investor Association (REIA) meetings and by asking other investors and agents for referrals. Vetting is key: verify licenses, insurance, and references for any professionals you consider adding to your team.Good luck with your learning journey! Feel free to ask specific questions as they arise

That's a strong portfolio, but the cash flow gap is a common challenge. To address this:

• Audit Expenses: Drill down into each expense category per property. Can you negotiate with property managers or vendors? Implement preventative maintenance?
• Maximize Revenue & Reduce Turnover: Ensure competitive pricing and efficient rent collection. Strong tenant screening and lease renewal incentives are key to retention.
• Evaluate Property by Property: Don't just look at averages. Analyze individual unit performance to identify specific issues impacting your bottom line.
• Consider Repositioning: With your low LTV, selling underperforming assets and reinvesting in properties with more predictable cash flow might be a viable strategy to fund early retirement

@Joseph Jolley

You've got a fantastic portfolio! To maximize your results and ease management, focus on these key aspects:

• Build a strong local team: Reliable property management and trusted contractors are crucial for remote success.
• Leverage technology: Automate tasks like rent collection and communication. Use tools for virtual tours and remote property monitoring to streamline operations.
• Deep market research: Even from afar, understand the specific market dynamics, rental demand, and potential for appreciation in each area you invest in.

By focusing on these areas, you can continue to grow your investments effectively, even at a distance.

@Mateo Duba

Starting at 23 with agent/wholesaling experience is great! Consider:

1. High-Cost Areas: House hacking (e.g., buying a multi-family and renting out units) can be effective in areas like Miami Beach. This allows for equity building while rental income offsets costs.
2. 
   
   Considering different markets: Don't rule out areas that might have good potential for appreciation
   
   

@James McGovern

As an out-of-state investor, some key things I’ve learned to look for before jumping into any market:

• Local property management you trust — they’re your boots on the ground.
• Neighborhood class and street-by-street variability (photos and Google Maps can only show so much).
• Exit strategy clarity — whether it's BRRRR, flip, or buy-and-hold, your numbers need to work with conservative assumptions.
• Reliable contractor network if there’s any rehab involved — this can make or break deals from afar.
• And finally, verify rent comps and rehab costs with locals — online estimates often miss the mark.

@Johnny Silverio

Appreciate the thoughtful post, Johnny — and respect for thinking long-term from the start. Turnkey and Section 8 can be a solid entry point, especially if you’re focused on systems and consistency while abroad. Key will be building a trusted local team (PM, contractor, agent, etc.) who can operate independently. I’d also look into areas with strong rent-to-price ratios, landlord-friendly laws, and economic stability. Happy to share how others are doing it virtually if that’s helpful — you’re on the right track!