All Forum Posts by: Johnny Lynum

Hey Kyle! I totally get why real estate feels daunting compared to stocks. Here are some quick stats to consider:

1. Tangible Asset: Real estate is a physical asset you can see and touch, which can provide peace of mind.
2. Cash Flow: About 33% of homeowners rent out their properties, generating consistent income through rent.
3. Appreciation: Real estate appreciates by about 3-5% per year, while the stock market averages around 10% but with more volatility.
4. Tax Benefits: Investors enjoy deductions on mortgage interest, property taxes, and depreciation.
5. Control: You can actively manage and improve your property to increase its value.

Just take it step by step, and you might find real estate is less risky than it seems. Education first, then execution. 

Hey Lia! 

First off, kudos for diving into the real estate world while juggling college!  Very impressive! Here’s my two cents on your questions:

1. House Flipping vs. Multi-Family Properties: Starting with a turnkey multi-family property can be a smart move. It’s less risky, and you’ll get rental income right away. Flipping can be thrilling but comes with a steep learning curve.
2. Investment Strategies for Beginners: Look for markets with strong rental demand and low entry costs. Consider areas with job growth, as they usually lead to good returns.
3. Feeling Ready: Confidence comes from a mix of education and action. If you can analyze deals and understand your market, you’re on the right track. Start small, and trust your instincts.
4. Books and Mentors: "Rich Dad Poor Dad" is a classic. Also, consider reaching out to local real estate groups or meetups. Networking can lead to great mentorship opportunities!
5. Gaining Experience: Shadowing a seasoned investor is a fantastic idea! You could also consider internships or volunteering with property management companies. Don’t hesitate to ask around—most people love sharing their knowledge!

You're already ahead of the game by educating yourself, so keep that momentum going. You've got this! 🚀

Best of luck on your journey! If you have any other questions, feel free to reach out. 😊

Hey Juan!

Awesome! FL has many opportunities! I also have a couple of investment properties in Panama City! Doing your homework is key to making smart investment decisions. See if this helps...

1. Figure Out Your Goals: First things first—what’s your endgame? Are you aiming for steady rental income, long-term growth, or a bit of both? This will steer your research.
2. Get to Know the Market:
   • Check Property Values: See how property prices are moving in the areas you’re eyeing. Zillow and Redfin are great for this.
   • Look at Rental Rates: Compare current rents for similar places. Rentometer can be handy here.
   • Vacancy Rates: High vacancy can be a red flag. Look up local reports or chat with property managers to get the scoop.
3. Watch the Economy:
   • Job Growth: A booming job scene usually means more demand for rentals. Check out local job stats and major employers.
   • Population Trends: Areas with growing populations often see rising property values. Look at census data or local reports.
4. Explore the Neighborhoods:
   • Amenities: Properties close to schools, shops, and transit tend to attract more tenants. See what’s around.
   • Safety: Check out crime rates in the area using sites like NeighborhoodScout to ensure it's a safe spot.
5. Check Out Local Reports:
   • Market Reports: Read up on Florida market reports from local real estate groups. They’re packed with useful info.
   • Commercial Data: For multi-family insights, CoStar has detailed market data, though it might need a subscription. Also, check out Propstream, they have a 7-day free trial.
6. Connect with Locals:
   • Talk to Realtors: Local real estate agents can give you a good feel for the market.
   • Join Investment Groups: Look for local real estate meetups. Check events in your local area, check Meetup.com FL has some great groups where you can swap ideas with other investors.
7. Compare Properties:
   • Look at Comps: Check out recently sold properties similar to what you’re interested in to gauge value.
8. Understand Market Cycles:
   • Know the Trends: Real estate markets go through ups and downs. Understanding where the market is can help you make better decisions.
9. Use Helpful Tools:
   • Real Estate Apps: Apps like Redfin and Realtor.com offer a lot of info on property values and market trends.
   • Deal Analysis Tools: Consider tools Biggerpockets calculator, they offer a variety of calculators that are very easy to use! 
10. Get Expert Advice:
    • Consult Professionals: If you’re unsure, getting advice from a mentor or real estate coach can be a game-changer.

Hope these tips help! Sure, would love to connect! 

Best of luck!

Cheers,
Johnny

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $168,000
Cash invested: $40,261
Sale price: $340,000

Duplex flip in Mobile, AL

How did you find this deal and how did you negotiate it?

Cold Calling

How did you finance this deal?

Hard Money

How did you add value to the deal?

Renovated the damaged unit and painted throughout both units.

What was the outcome?

Sold for about $15k then my original ARV.

Lessons learned? Challenges?

This project still confirmed that it's hard to comp small multifamily when it comes to appraisals.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I leveraged Hornet Capital who lend exclusively to Veterans as my hard money lender.

Investment Info:

Townhouse fix & flip investment.

Purchase price: $290,000
Cash invested: $31,372
Sale price: $360,000

DC Townhouse Wholetail Deal

What made you interested in investing in this type of deal?

Referral

How did you find this deal and how did you negotiate it?

It was a refferral from a friend

How did you finance this deal?

Hard money

How did you add value to the deal?

We relisted on mls after closing.

What was the outcome?

It took about 5 months to close with a FHA/203K buyer.

Lessons learned? Challenges?

There are still deals to made even in a high interest rate environment.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked Hornet Capital which lends to Veterans.

@Sean Keebler welcome!

@Mark Davis hi Mark! I will take a look!

@James Hamilton congratulations for setting your goal to buy your first rental! Do you own your primary residence? If not, I would recommend you purchase a home with a VA or fha loan first. You want to make sure it will cashflow as a rental, so you can transition out of it after a year or when it makes sense. You can buy a foreclosure with these loan products which can provide a lot of instant equity. Additionally, you can buy up to a 4 unit which allows you to become an instant landlord with a low down payment.

If you are trying to find a rental with a low down payment, you may need to look at a value add project. This will allow you to use hard money to buy it, renovate it, rent it , and then refinance it. If you are short on capital, then partnering with someone is a possibility too. You can also negotiate a seller financing deal with a motivated seller. Congrats again!

@Doug Spence great advice!