All Forum Posts by: Thomas O'Donnell

Good morning everyone at BP! I know we have all seen multiple ways to analyze a deal and run numbers to determine what is a good/bad deal. But what are some of the BEST ways to analyze a deal? I currently use the BiggerPockets rental property tool, but I feel like there has to be more that goes into it. I really want to get good at analyzing properties so that I can make the best decisions for my investing future. I am currently looking to buy my first rental property via house-hacking, and although it doesn't need to be a home run, I would at least like to get a nice base hit to get the ball rolling.

Quote from @James Hamling:

There is always going to be something @Thomas O'Donnell, some fear of now vs later because for every player out on the field making the actions to score the TD's, there is 10,000 sitting in the stands watching yelling out what those players "should" be doing, and guess how many points they score from those seats.... 

Everything in REI boiled down to the simplest possible explanation is *"Don't try to put square pegs in round holes". A deal is a deal, you'll know it when you see it. Ignore the market, ignore the times, tune it all out, turn it all off, and just simply do the analysis of that deal and answer the question, is it or isn't it a deal.

When it comes to timing the market, have you ever heard the sorties of all the people who jumped in buying properties in '09', because they had been waiting knowing the price drop was coming? No, because there isn't any. Or how about all the people who went hog-wild buying everything in '12-18' because they "knew" values were going to take massive jumps up????? No, again.    If you can time the market for these kinds of moves, it's a league of you and you alone, think about that, are you better then literally every human alive to peg such a thing?     So right there we know "timing the market" is a complete mirage, it does not exist, it's what people riding the bench say to make an excuse for why they are not doing anything vs the truth of admitting they don't know what to do, or are letting fear win over work. 

Don't force it, run the numbers, act like an investor and not a gambler. 

 Love this!

Hello all!

I am a new investor looking to move to Columbus, OH soon and purchase my first property via house-hacking. However, I am not sure what to expect with this market as in waiting for prices to drop or buying asap. Interest rates are rising ans I feel like the RE market has some uncertainty surrounding it at the moment. I want to be smart with the minimal cash that I have and make sure that I am buying a great deal to protect myself. I don’t want to dive in head first and then watch the market crash. What are some ways that I can enter this market and when should I enter the market? All advice is greatly appreciated!

Hello all!

I am a new investor looking to move to Columbus, OH soon and purchase my first property via house-hacking. However, I am not sure what to expect with this market as in waiting for prices to drop or buying asap. Interest rates are rising ans I feel like the RE market has some uncertainty surrounding it at the moment. I want to be smart with the minimal cash that I have and make sure that I am buying a great deal to protect myself. I don’t want to dive in head first and then watch the market crash. What are some ways that I can enter this market and when should I enter the market? All advice is greatly appreciated! 

Although I lack any experience, I am about to go through with purchasing my first property via house-hacking. I would definitely recommend looking into hard money loans (HML) in order to finance the whole purchase. However, some HML require you to have a certain amount of money in reserves

Quote from @Alicia Prokos:

I think David Greene of the Bigger Pockets Podcast might be a good one to ask this question. He lives in the Bay Area and also had to start in real estate dealing with the challenge of an extremely expensive market. He currently buys rental property in the Bay Area and long distance, so he might have some insights for you. He takes questions on his show, and I think you can write in your question on YouTube, where they post a video version of the podcast. Myself, I live in Columbus OH and run a land development company. I would be more than happy to help you in any way that I can, and it is true that living here is significantly less costly than CA. What is your line of work? Perhaps I could help with the names of potential employers.

I currently work in security, but I’m not looking to continue this type of work unless it pays well. There’s many issues in this field that I do not want to deal with anymore. I’ve had employers reach back out but they are unwilling to offer anything due to me not living in Columbus yet. 

Quote from @Andy Rousch:

It wouldn't be a bad experience to move for a little bit to get into cheaper properties with low money down. Keep in mind though if you move to another location, a lender is going to want to see a job offer and a first paystub before moving in, OR if you are able to work remote they will just need a letter showing that you are allowed to work remote. 

13K will be touch to get into the CA market of course, try to think of maybe a family member who would help out,if you have funds in a IRA/401k, or any other types of money you may have that you may need to get creative to get. Refinancing a car that doesn't have a car loan, etc. while of course watching your debt to income limits

Yeah I’m currently struggling trying to get a job offer over there before moving. I’d really prefer to buy a property before moving instead of having to rent month to month when I get there, and then take up employment and find a house/duplex.

Quote from @Noah Yoder:

The way I see it, (at least in Columbus) is that the longer you wait, the more you will be kicking yourself for not buying here.

However, it sounds like there are some decisions you will have to make on your own in order to take the calculated risk you are comfortable with. Obtaining a buy-and-hold duplex while you have no living expenses and then moving into one side when you decide to come to Ohio might be an option to consider. That way, you have passive income and a place to live/house hack when you get here.

You sound motivated and eager to start your portfolio! Best of luck!!

Thanks for the reply! Also, I don’t think I have enough for 20% on a property in Columbus. I could only afford to house-hack. It’s been super hard trying to get a job out there for me not already living in the state. 

So I'm currently in a dilemma. I have about $13,000 that I can use for my first rental property. I have been strongly considering moving to a cheaper more affordable market and house-hacking (I currently live in the CA Bay Area and do not work in tech). I had previously chose Columbus, OH and was planning to move and use a FHA to get into a duplex or a SFH. However, moving expenses would be about $3,000-$4,000 which would cut into the cash that I have, and I would be making less income after the move. I wish I could house-hack in my own market but it is way too expensive.

Very recently I have been considering the idea of staying here, where I currently live with my parents rent free, and getting a new higher paying job (if I can). Then, using my cash I have saved and new income to put 20% down on investment properties in cheaper markets that might need to be fix and flips or fix and holds. If I was to do this, I would probably need to invest where properties are below $75k and I am able to add value through a rehab (with possible use of a HML).

So I guess the question is, should I move now, eat the moving costs, make less money and house-hack whatever I can…. Or should I stay here, up my income, and try to invest long distance with flips or fix and holds (will be a lot more difficult to do).

After a flip or 2, I feel I could potentially have enough to move to a market that I would want to stay in with more money. I really want to get my first property and never look back as I start my REI career. I am just curious if any of you can share some insight on a similar dilemma or maybe have some advice. Thank you all!

Hello all! I am looking to invest in Columbus, Ohio within the next month or so, and I was wondering if there are any other investors or property managers that can give me some pointers on where I should invest and where I should definitely avoid. I am not from Columbus so it hasn't been the easiest to determine this, but I know there are some really bad parts spread across the city. I am looking to either BRRRR or house-hack in C to B areas. I would love to connect with some of you who are already there. Please reach out I would love to talk!