All Forum Posts by: Lisa Phillips

Great info guys!

Columbus is a great area. I have a property there, its very stable with a higher end tenant pool (jobs are plentiful). I don't get as high rents, but its stable so I am okay with the 150/mo cash flow.

@Jean Bolger was right in saying you really need to do some research on appreciation, and know "WHY" a neighborhood will appreciate. I don't want to be troll here, but why does everyone assume they will have appreciation in 20 years? I see a bias in thinking that in 20 years for now properties have to be higher if you pay more now...but really, with lending standards tightening by law, and wages remaining largely stagnant, what indicates higher prices 20 years from now? If we dont have more people qualified for obtaining a mortgage, I see the opposite. My 2 cents: research this appreciation game before you make the move, especially since its out of state.

We're in the big leagues now!

Lisa

@Joe Fairless I REALLY have to second Joe. If you have decent properties in the 30k-50k range, and rents are $800 and up, I would put the money in putting in a new roof, updating the plumbing, and putting on some paint, and have a nice cash flowing property you can own free and clear in 5-6 years. Just saying, buy and hold is great for long term wealth and leverage. I am biased, since thats my strategy.

Do it on your own. Now that I am working on my fourth property, people want to join me now, but I just think to myself,"When I make a decision on how the money is spent, or who will do the work, I REALLY don't want to argue with someone about whats best." Its like a marriage, so you need to be really compatible.

@John Adamkewitz I have to second that, great advice John!

Lisa

Good comments from the board!

I have to agree with @Mike D'Arrigo - it depends on what the "not so good area" is. Are you talking 2 for 10k and 1 for 25k, or are you talking 2 for 30k and 1 for 60k? A 10k neighborhood can have more issues than a 25k-30k neighborhood. For the first scenario, I would go with a solid 25k house. For the second scenario, I have found 30k neighborhoods to be perfectly fine investments and I would go that route than 60k. So, depending on the scales of the differences in price, that's how I would go. The lower end you go, the more selective you should be to make sure it doesn't turn into a painful experience. However, just because it is cheap doesn't mean that it has to be a headache - that depends on how good you are at selecting a property, tenants, and a property manager (if need be).

Thank you Jason! You have a lot of options, sometimes thats the hardest part.

So, from baltimore being tenant friendly, and richmond being landlord friendly: 1) Lead paint - in one city its the end all, be all, and a lot of money has to get paid to different people in order for you to do your business, in richmond I just have to give a disclosure and educational pamphlet 2) In baltimore, as opposed to richmond, there are so many govt agencies who feel justified in putting their hands in your honey jar ($30 annual fee here, $60 annual fee there), where as in other cities you dont have to keep a check list of govt agency mouths to feed. Ive invested in 3 cities, so I learned the complete differences, and now its hard for me to keep investing in tenant friendly cities when i KNOW how much less of a headache in a landlord friendly municipality.

@Jon Holdman has a ton of great insights, so following and answering his questions for yourself will show you the right way.

The bay area isn't one I would like to "start" investing in, i think its a place for more experienced investors since the price points are so high. However, if you're open to investing outside the city, especially in mobile homes or other lower priced areas, you can get a start there as well. Otherwise, you may have to wait the 2 years to acquire more capital and credit seasoning, but you have choices.