All Forum Posts by: Tony Akhigbe

@Amit Kumar, Yes I understand, that's what I had to do for my comfort level at this point. But for future markets where I don't know anyone, such as Dallas/Fort Worth (my ideal market right now),  I'll have to expand my comfort zone to trust people, put the work into networking & visiting to find local partners, contractors, etc. Then testing them out (and they test me) to see what long term relationships we can form. 

Hi @Amit Kumar

I got stuck on this a few years back, pulling what little I had of my hair out trying to find great markets (was looking for a home run since it would be my 1st long distance project). Finally I just picked markets where I had REI friends, the idea being someone local with RE knowledge could check in if something went wrong and I couldn't be there. That's how I ended up doing a flip in Lafayette last year (never went there, saw it only through pictures) and now looking at Memphis.

I'm now at the point where I need an on-the-ground and network (since I want to build a long term portfolio so I need PMs/contractors/etc). It looks like that's where you are too? I'm just going to use BP and go from there. I will fly out at some point.

Hope this helps. All the best

Tony

What I mean is prices have not come down below (or even near) the elevated levels seen in 2008 (prices rose like crazy from 2006-08). This even though Calgary has been through 2 oil price crashes and 2 recessions in the last 10 years. 1 SFR I bought for around $335k in 2010, sold for $462k in 2015, all the while barely making anything in rents. Stuff like this got me frustrated (the cash flow part) and now looking down south, maybe I'm doing it wrong.

I typically look for properties in older established neighbourhoods in southwest/east Calgary. Communities like southwood, Braeside, Acadia, etc. These have wider lots, more amenities, established schools, etc.

@Neil Da Silva

Buying for cash flow in Calgary/Edmonton depends on finding good to great deals. I would say Alberta is more of an appreciation than a cash flow market, I (and others I know) have done way better on appreciation than on my cash flows. Its not impossible to get cash flow, but one might need to get creative to secure a good one (example, putting in basement suites).

I agree with the Calgary folks here, I think we're seeing the bottom of the market(s) - real estate, oil, unemployment. My realtor friends say various metrics have been rising this year (sales, listings, prices, etc). Oil has stabilized (relative to free fall of past years) and the unemployment rate is coming down. However there has been almost change in O&G employment, although there's optimism. I did a research project early this year, the data (especially H2 2016) showed O&G total employment figures were flat (negligible changes in hiring/firing) while other industries were growing & adding employees. When this industry starts growing again, then we'll know Alberta/Calgary has firmly turned the corner.

So this does look like a good time to buy and settle in for the long haul. However turning up from the bottom depends on the price of oil stabilizing and then rising (even if gradually).

Congratulations @Kyle R. very well done. I too hope to be doing deals like this in the near future, I currently only have single family rentals. 

Hi @Gord Stevenson, Ahh sorry about that, my bad.

Hi @Cody Hill

Like @Gord Stevenson  and @Brett Snodgrass, I don't want to sway you from your plan. In fact I'll encourage you to pursue your vision because I'd love to hear your success story.

I haven't been able to find any deal in Calgary that BRRRR would have worked. The closest I came, I found a trashed house & fixed it up to flip. If I'd tried BRRRR I estimated that I'd only have gotten about 55% of my money back.

So I tried the US and was able to find several properties way below market. Bought one for $36k, fixed it up & flipped (beginner's luck? hope not!). My problem was getting financing in US but BRRR would have been no issue there.

So now I'm split as to where to focus. US appears more profitable but more complex especially with remotely managing the projects. So I'd love to see someone succeed here with your plan.

Tony

@Gord Stevenson

Thanks for the tag Cal , I should be there. 

Tony

Hi @Taylor Brown welcome to Biggerpockets, you're definitely in the right place to find investors with similar interests. There's a lot to learn in real estate and so much information here. The Calgary BP meetup group is starting to pick up steam so you've joined at the right time.

Tony

This sounds great, I just started investing in the US (and a few challenges have already popped up), so would love to meet and hear from you @Marco Santarelli and @Cal Ewing and others who are already active in that market. Unfortunately 24/25th are booked for me, unless I start now working on how to get myself out of it. 23rd works better for me, then the week's craziness is done and I take my mind off that. But whatever date the majority settles on, I'll go with it and see how I can make it.

Thanks

Tony