All Forum Posts by: Ryan Spath

@Austin Fowler

Great conversation. I'm both an investor and an agent, and my passion lies in helping people enter the market through FHA financing—often by house hacking with a duplex to offset their mortgage. Beyond that, I love working with clients to scale strategically, with a goal of building 10 properties over 12–15 years and ultimately achieving financial independence.

This is the same strategy my wife and I have followed successfully. Over time, our target returns have become more conservative. Today, we look for a minimum 6% cash-on-cash returns, along with loan paydown and depreciation. We self-manage our portfolio and also guide our clients in doing the same. The approach is highly scalable, but ultimately depends on each person’s earnings, savings rate, goals, and timeline.

If we were fortunate enough to receive $1M tax-free, our plan would likely be to purchase three brand-new properties in Canyon County (Caldwell, specifically). Each could rent for roughly $2,000 per month, generating $6,000 in gross monthly income. After accounting for ~$3,500 in annual taxes and ~$900 in annual insurance per property, the net would be around $61K per year.

While that isn’t flashy, the benefit of new construction is minimal large capital expenditures for the next 8–10 years. From that $6K monthly income, we’d allocate 30% (~$1,800) to a capex reserve, leaving ~$4,200 in additional free cash flow for our family. On top of that, as active investors, we’d utilize depreciation to offset income—around $10,545 per home annually.

If additional tax sheltering were needed, we could explore leveraging two of the properties at 50%, buying four instead of three: two free and clear, and two with modest debt. That flexibility is the beauty of a conservative, scalable model.

Hi Dawson,

It sounds like you’re in a strong position and heading in the right direction. Based on what you’ve shared (and without knowing your full financial picture), option 2 looks like an excellent path forward.

If you're able to leverage an FHA loan to purchase a 2–4 unit property, you could get in with just 3.5% down plus closing costs. In many Florida markets, it's also possible to negotiate seller concessions to help cover those closing costs, making the entry point even more manageable.

Since your plan is on a two-year horizon, none of us can predict exactly what the market will look like then. However, the beauty of this strategy is its flexibility. As units turn, you can move into them, renovate, and steadily increase both the value of the property and the rents. Repeating this process—even just a few times to acquire three properties—can dramatically shift your financial trajectory over the next 10–15 years.

For context, my wife and I currently own properties on Florida’s Treasure Coast, while I live in Boise, Idaho, where I help clients execute this exact strategy. If you’d ever like to run the numbers together or, when the time comes, connect with an investor-friendly agent on the Treasure Coast, I’d be glad to help.

Best

@Ky Perry

Good to hear what’s happening in Utah. I’m right next door in Idaho, specifically in the Treasure Valley, and our market has shifted noticeably over the past several months. We’re no longer in a “highest and best” frenzy. Instead, conditions are leaning more toward a buyer’s market.

Since January, inventory has more than doubled. In Ada County alone, active listings have climbed from 588 in January to 1,372 in July, pushing months of supply from 1.2 to 2.8. Average days on market have held fairly steady, ticking up slightly from 34 to 35 days. (Note: these figures reflect existing homes only, not new construction.)

Of course, these are county-wide numbers — each city and price point tells its own story. But overall, sellers are becoming more realistic. Concessions are back on the table, and flexibility is often required to get deals done. Well-priced properties still move quickly, sometimes within just a few days, while overpriced listings sit longer.

For investors, this shift means more negotiation room, better terms, and opportunities to secure properties without bidding wars.

@Elias Saarela this is my specialty and I help people do this here locally in Boise. Not sure if your local but if you are we can grab coffee. If not Give me a call or shoot me a message and I'd love to connect with you and help provide value and insights. 

@Corey Goldstein

I couldn't agree more with your points here. This is a fantastic discussion on the nuances of property management, and it really hits on some of the most critical factors for a new investor to consider.

Having been in the business for over 12 years with assets in multiple states, I've experienced these issues firsthand.

• The Myth of the Midnight Toilet: Like many, we initially started with property managers, hoping to avoid the inevitable midnight phone calls. But the truth is, the trade-off for convenience can often be a lack of oversight. You, as the owner, must stay engaged and ready to take action on the reports provided.
• The Cost of Sloppy Screening: You're spot on. A missed red flag during tenant screening can lead to significant financial and emotional costs down the line. It's the most critical step in the entire process.
• Deferred Maintenance: A Financial Blind Spot: I've seen this countless times, especially here in Boise. It's truly amazing the level of distress a property can fall into. The temptation to "save money" by deferring maintenance ultimately costs owners much more in the long run, whether through lost rent, higher repair costs, or a lower valuation at the time of refinance or sale. A proactive approach is always a better investment.

This has been a great conversation, and I'm curious to hear from others with more experience on their thoughts and strategies. Thanks for bringing this up!

@William Dos Santos

Welcome to Idaho! It's fantastic to have you here in the Treasure Valley.

I'm curious, how much do you miss that ocean breeze? My family and I visited Mission Beach a few years back and absolutely loved it – walking the boardwalk and taking in all the views was a highlight!

I'm truly sorry to hear about your father's passing. That must have been an incredibly tough situation to navigate. I completely agree with your perspective that life is short, and focusing on setting your family up for long-term success is an admirable goal. Real estate definitely has the power to do just that!

As an agent and active investor here in the Treasure Valley, based in NW Boise, I'm passionate about helping people leverage real estate for their financial goals.

I'd love to connect over coffee sometime to hear more about your plans and discuss how real estate in our market could help you achieve them.

Let me know what your availability looks like.

 that seems to be the general consensus from the more experienced guys, thanks for sharing! I may have to shift how we personally store cash! for the relocation, the tenant stayed with a friend and we gave them a $500 discount on the rent, this was there request. We offered a free month but they thought that was to generous.

Hello Dallin,

Welcome to the BiggerPockets community! It's great to hear you're excited about real estate and taking steps to learn from books and videos. That's an excellent foundation.

It's completely understandable to feel a bit isolated in a smaller town when you're passionate about real estate and don't have many local connections who share that interest. You're absolutely right that making relationships with knowledgeable people is a huge step in this journey – that's what this community is all about!

It's fantastic that you're thinking about your family's future. Real estate can indeed be a powerful tool for building wealth and achieving financial security.

As you continue to learn and prepare for your first step, I'd encourage you to:

• Keep learning: Your dedication to books and videos is key.
• Focus on strategy: Think about what type of investing aligns best with your family's goals and risk tolerance (e.g., long-term rentals, house hacking).
• Leverage your local knowledge: Even in a smaller town, there might be unique opportunities if you understand the local market dynamics.

I'm an active real estate investor and Realtor here in Idaho's Treasure Valley, so I'm very familiar with the nuances of our state's market. If you ever want to discuss Idaho-specific strategies, market insights, or just have questions about getting started, feel free to ask here on the forum or connect directly.

What's one question you have right now about making that first move?

Best,

@Tulika Bose

Welcome to the exciting world of real estate investing! This is truly a powerful tool that can transform average people into financially free individuals and millionaires. It's fantastic that you and your son are embarking on this journey together.

Feeling overwhelmed and experiencing analysis paralysis is incredibly common, especially when you're starting with limited capital. You're not alone in that! The fact that you're consuming content and asking for advice shows you're committed to doing it right, which is the most important mindset.

Here are some thoughts based on your goals and challenges:

1. 1. Market Selection:
   • "Boots on the Ground" is King: I always advise new investors to start in an area they are intimately familiar with, or where they have reliable "boots on the ground" (a trusted team member, friend, or family member who can physically be there). This significantly reduces risk, especially for your first deal. Given your situation, Central Jersey or the Philadelphia region might offer this advantage.
2. Local Market Nuances: Each market has its own quirks. While Frisco, TX, is growing, understanding the local landlord-tenant laws, typical tenant profiles, and contractor networks from afar can be challenging for a first deal.
3. Focus on Cash Flow First: For a long-term rental portfolio, consistent cash flow is paramount. Ensure your target Class B properties can truly generate positive cash flow after all expenses (mortgage, taxes, insurance, vacancy, repairs, capital expenditures, management fees).
4. 2. Analyzing Deals in Your Markets (Step-by-Step):
   • Run the Numbers, Relentlessly: For Class B properties, make sure you are cash flow positive after all expenses.
5. Get Realistic Expenses: Don't just estimate mortgage. Include property taxes, insurance, a vacancy rate (e.g., 5-10%), a repair/maintenance budget (e.g., 5-10% of gross rent), and a capital expenditure (CapEx) fund (e.g., 5-10% of gross rent for big-ticket items like roofs, HVAC).
6. Know Your Rehab Budget: For your first one, keep the rehab simple: floors, paint, appliances, maybe a bathroom refresh. You do NOT want to overwhelm yourselves with a major renovation on your first deal.
7. Check Major Components: As you noted, verify the age and condition of the roof, HVAC, and water heater. These are big-ticket items that can quickly eat into profits.
8. 3. Red Flags for Beginners:
   • Emotional Buys: Stick to the numbers. If it doesn't cash flow, it's not a deal for your strategy.
9. Underestimating Expenses: This is the biggest pitfall. Always budget more for repairs and CapEx than you think you'll need.
10. Ignoring Local Laws: Especially landlord-tenant laws and any specific regulations for Class B properties or student rentals.
11. "Too Good to Be True" Deals: If it seems too easy, it probably is.
12. Lack of Team: Even if you're self-managing, have a reliable network of contractors, a good lender, and a knowledgeable agent (like yourselves!).
13. 4. Overcoming Analysis Paralysis: Just Do It (Smartly)!
    • You've consumed a lot of content – that's great! Now, it's about taking that educated leap. The first property is your best teacher. It will give you invaluable experience for the second, and so on.
14. Start Small, Learn Big: A light rehab Class B property is perfect for this.
15. Market Shifts as Opportunity: Here in Boise, Idaho, for example, we're currently seeing a slight shift where buyers are having to be more realistic with prices, and are often offering concessions to get deals done. Use these market shifts to your advantage in your target markets – look for motivated sellers!
16. 5. FHA financing
    • o You mentioned your adult son is investing alongside of you, if he doe not already have a residence you can leverage this by purchasing a small multifamily unit 2-4 units with as little as 3.5% down!

With the right mindset and a bit of financial discipline, you truly can achieve financial freedom through real estate, potentially in around 10 years. Bigger Pockets has some amazing free resources, this is one of my new favorites is the FI guide: Real Estate Investing Data and How-to Guides

Wishing you both the very best on your journey. Feel free to reach out if you have any specific questions or want to connect further, I’m located in Boise, Idaho so I cannot help you find deals but running numbers and different scenarios is something I love helping new investors do.

@Cade Carver

You’re in an incredible position at 21—deciding to invest this early already puts you years ahead of the curve.

If I could go back to that age knowing what I know now, I'd 100% house hack a 2–4 unit property using an FHA loan. The most important part? Underwriting the deal so that it still cash flows once you move out. And remember—location is everything. Choose the right area of town, even if it means going smaller or more modest on the property itself.

I love that you’re aiming to follow the BiggerPockets Stack method. It’s a powerful strategy. Even if you buy just one 4-unit building every other year, in 10 years you could own 5 properties and 20 doors. With rent growth and conservative management, netting just $400 per unit would give you $8,000/month—or $96,000/year—in passive income. That’s enough to cover your lifestyle and give you the freedom to work on your own terms.

A few quick lessons I wish I knew starting out:

• Always budget for repairs. ACs break, water heaters leak, and something will go wrong.
• Run your properties like a business. Stick to the numbers, build systems early, and avoid emotional decisions.
• Get comfortable being uncomfortable. Whether it’s living in one unit, handling repairs, or managing tenants—it’s temporary. The payoff is long-term comfort and financial freedom.

I’m based in Boise, Idaho, but the fundamentals apply in any market. If you ever want to talk strategy or have a deal you’d like another set of eyes on, don’t hesitate to reach out.

Keep stacking and keep us posted—excited to see where your journey takes you!