All Forum Posts by: Moe Sidd

Welcome back! With your experience, you’re in a great spot to take real estate full-time. If you want income you can manage from anywhere, look at turnkey rentals in strong Midwest markets, ones that are already renovated, rented, and managed. It’s an easy way to start building cash flow while scaling without getting stuck in day-to-day management.

Happy to share some examples or run through how out-of-state investing works for me and my investors if you’re interested.

I'm super familiar with the Dallas and Houston markets, given that I live here, but due to rising property costs, property taxes, and crazy insurance costs, I chose to go out of state. 

In the Midwest, you can buy a rent-ready, in fact, even tenanted property, for 100k that can pass the 1% rule, or at least get very close to it. I'm talking states like Ohio, Michigan, or Indiana.

Happy to dive deeper if this is something you're considering, as much as I love Texas, the numbers just don't seem to work anymore, unfortunately. 

Have you considered investing in long-term SFH rentals out of state? You might be surprised they often provide better ROI than STRs on the coasts, with a lot less hassle. I'd recommend looking for a reliable turnkey provider that offers rent-ready homes with solid returns and hands-off management. Happy to share more if you want to explore this approach. Best of luck!

@Jordan Swift  Being in Indiana is actually a big advantage as you're close to solid rental markets with strong cash flow potential.

If you want to start local, those college areas can be great for mid-term rentals. Just make sure you’re running the numbers carefully since turnover and furnishing costs can eat into profits.

For longer-term cash flow (and eventually more passive income), you might also look into turnkey rentals. Ideally a smaller SFH that's renovated, rented, and managed, so you can focus on scaling without getting bogged down in the dirty work.

Happy to share more details on what that looks like for out-of-state investors.

@Rick Ellsberry Given how expensive California has become, looking out of state is definitely the right way to go.

If you're interested in the BRRRR strategy but don't want to deal with managing rehabs and tenants from afar, consider turnkey rentals in Midwest markets like Ohio, Michigan, and Indiana. Look for properties that are already renovated, rented, and managed, so you can start collecting cash flow right away.

I’d target homes around the $100K range that meet or come close to the 1% rule. Happy to share some examples or walk you through what long-distance investing can look like.

@Jerry Shank, Congrats on being in that position, $500K gives you a lot of flexibility. If you want solid cash flow and scale fast, I'd look into turnkey long-term SFH rentals in Midwest markets such as Ohio, Michigan, and Indiana, as they have lower prices, strong rents, and landlord-friendly laws. You'd make more doing long-term SFH rentals out-of-state than STR in most other markets on the East and West Coasts!

I'd target rent-ready (or better yet already tenanted properties) around the 100k mark, that are pretty close to the 1% rule if possible. Happy to share some example deals or returns if you'd like to see what that looks like.

Hi @Christopher Rubio, welcome to your real estate journey. Once you get started you wont be able to stop!

I started with SFH and still exclusively deal with SFH. Often, the numbers are better in SFH deals than in Multi-Family. For example, I often see duplexes listed for more than 2 SFH! But this may be just in the markets I deal with, so your mileage may vary based on which states/cities you're looking into? I have heard many apartment complex owners liquidate and go all in SFH because the numbers were better. Many people get caught up in the notion that more is better when it comes to multi-family housing, as it sounds so appealing.

Looking back, I think I'd do it the same way, especially starting out.  Even with several years under my belt, I feel multi-family can make things more complicated, and I like keeping things simple and less risky.  Having your wealth spread across multiple properties is a form of diversification.

For someone just starting out, I think the class of property or market is less important than the people you will be involved with (tenants, contractors, property managers).  They can either make or break your journey, so look for great people to work with first, and then the rest will follow! My suggestion is doing what's less popular might actually win the race over time, so don't fall into hyped strategies.

Welcome @Pynne Mitsch. I do like the idea of house hacking especially if you can get one or more tenants to cover most, if not all, of the mortgage! I would also suggest looking out-of-state for rentals if your current plan falls through, since I know Oregan can be very expensive to get started in. Best of luck!

@Benjamin Dolly, I say continue to save up and have as little leverage as possible.  The thing is, with that much leverage, you'll barely see any cash flow, even if you scale to a bunch of properties.  If you look at out-of-state investment properties, specifically in the Midwest or the South, you can still achieve solid returns with less capital to start.  I'm talking smaller properties around 100k that pass the 1% rule, or at least get close to it!

This is a common phenomenon in many older cities, particularly on the East Coast and the Midwest. As long as it's inspected and updated, I wouldn't let that deter me from making a purchase. I have several myself that are over 100 years old!  The way I look at it is that it must be built exceptionally well to last 100 years. I often trust them more than brand-new builds nowadays, given that they are usually constructed so poorly.