All Forum Posts by: Shone Freeman

I live and have invested in San Jose, Ca. I have a number of properties (SFHs, duplexes, condos, and a commercial property) here which have appreciated nicely and now cash flow well after many years. I also have a SFH in Bakersfield which has not appreciated and is under water on paper-but does cash flow for me so I just keep hanging on. My goal was to add a property to my portfolio every other year, which I have been able to do.

Investing for appreciation has always been my strategy due to where I live. I didn't really need the cash flow due to my occupation and didn't mind a break even or slight negative in order to achieve the appreciation. I have been doing this for a long time, in one way or another since I am a construction contractor.

I still don't need cash flow to live on, but since it takes so much money to jump into another property here, and I think the market here is closer to the top than the bottom, I am looking at other areas. Also, I am reconsidering my strategy going forward.

I have been checking out Indianapolis, Texas, Cleveland, Kansas City among others. There are pros and cons to going out of state.  Turnkey investing may solve much of the cons. But, it seems like by buying a turnkey, you run a good chance of buying a property at retail market price or higher, which means it may not appreciate for a long time, and unloading it could be painful.

I have about 150k saved up to invest at the moment and am looking for a good balance of CoC return and equity appreciation.

I would not plan to live off of cash flow from my investments for 10 or more years. So, what areas do you see that have good appreciation mixed with decent cash flows?

Are turnkey investments a good solution?

Would you recommend turnkey multi family, 4 plex or more?

Should I cash out refi some property here to leverage into another bigger deal?

I'm sort of stuck...

Roger,  I have heard of people investing in areas like that, but I don't want to deal with section 8 tenants.  And from my limited understanding of those areas, I wonder how they will hold up if the market softens.

That's why I consider going out of state.  I am checking out turnkey deals.  They have advantages, but I don't like that they are sold at close to retail prices and there is not much appreciation to be had from what I can tell so far.

I've noticed that there are some good deals in the Midwest.  I am not a Midwest resident, and finding the specific properties, fixing them, and renting them requires you to be there, or have a great team in the area.  I wouldn't mind the Midwest, or any other area where I can get properties to pencil out.  But it seems prohibitive to put all that together from my my location, as I run businesses here and have a family.  Anyone been able to solve similar equation?

hi guys, 

 i have been investing for some time, purchasing a property every couple of years.  But near where I live, the market is mostly cost prohibitive and deals do not pencil out.  How have some of you guys chosen your areas to invest in?  How do you find your team on the ground?  Any shared experiences would be a great help...

Shone