All Forum Posts by: Sam Smith

@Dylan Strain

If you're getting your degree paid for check out finance, economics, general business, accounting, or another similar degree that will teach you about money. I majored in economics, and I sincerely feel it gave me a leg up and more confidence when it comes to running numbers and investing. 

@Mystica Maxie, you're boyfriend's lucky that you care about him enough to learn about his interests! 

House hacking is an excellent way to start. Just run the numbers and look at a lot of deals. Duplexes are hard to come by since everyone sees how good of a deal they can be, but don't get discouraged. Usually what you are looking for with duplexes is for the rental income to cover the mortgage. Keep that in mind as you search and be patient. Encourage each other and assure one another that you are in it for the long game, not so that you can brag to your friends that you are investors. You're building this for yourselves, not anyone else.

And good luck!!

Hey @Matthew Truncale, congrats on getting out there and doing your research!

You definitely need to have a solid savings account for your first deal. Things break, and as the property owner you'll be responsible for fixing them. 

Can I ask, how have you calculated that buying a house would use all your savings? In which market and how much of a down payment are we talking? 

Hey Terry,

Good job on making moves, but I'd pause for a second. Your loan officer and agent are going to push you forward because they get a big commission if you go through with the deal.

As an outside observer, I wouldn't do the deal based on the numbers you gave. You're going to be left with $200/month for repairs and vacancy on each side and it sounds like you'll be renting to college students. College students aren't great tenants. Plus, what happens if they drop out or move in the middle of summer or the middle of the semester? It could take a long time to find a new tenant, but you're still paying the mortgage during that time. 

I know it can be frustrating to walk away and to keep looking, especially with a duplex since everyone always talks about "how great duplexes are". But that's only the case when the money makes sense.

Just take a beat and consider whether this deal is really right for you.

Good luck either way!

@David Taylor can I ask about why you'd like to start with a vacation rental as your first investment? 

I'm not saying you shouldn't do it, I'm just kind of curious. Is the idea that you would be able to use it as a vacation home for you and your wife as well as an investment? Or do you see this as the best ROI?

@Patrick Messenger  

 Congrats on making some moves! 

I'm kind of curious about the details of the Scottsdale town homes. Are you saying they would only cashflow a bit as airbnb/vrbo rentals? Do you like Scottsdale a lot and plan on using it as a vacation home for yourself and then rent it out when you aren't there? No experience with STR, so would be interested in knowing what drew you to that opportunity!

I like the Cleveland duplex idea A LOT. As long as the numbers work, investing out of state where you have family is excellent. It'll make some of those trips to visit tax deductible and you already have a network there!

Lawn care is the only thing I can think to add to your list.

For tax purposes you'll have depreciation over the holding period as well, but that's not really a "cost", more of a "consideration" as you run your numbers.

Good luck!

@Brenda Akinyi, congrats on getting started in your research! I have a few tips that were helpful for me when I got started.

1. Be patient. With yourself and the process of learning. Nothing great happens overnight. It takes most people 3 years to get their first deal (unless they settle for a bad one and lose money).

2. Keep focused. Your goal is to learn and find excellent deals, not to brag to people about being a landlord.

3. As you learn, start making list of all the possible strategies you could use. There are a ton, so it's helpful to have a list to refer to.

Good luck! 

PS, I live in DFW, but invest out of state to get better cash flow. My friend invests here and likes it for the appreciation. All depends on what you're looking for!

I’m sure you’re looking at it right. It all comes down to numbers, after all! I think investing out of state makes sense for cash flow (I do it). It’s just the cold and macro trends that give me a little caution. But I’ve heard of a lot of people having good experiences investing in Ohio!

If it works out please let me know! Like I said, I’d be open to looking at investments up north if they appreciate and cash flow without a ton of maintenance 

Good luck!

Yeah, that’s ideal. Once you find your location, definitely depend on your property manager. They’re the expert!

I like the idea of having a dataset like that too. Really smart!