All Forum Posts by: Vijay Sid

I am researching on investing in single family home in Pittsboro, IN. I have done some research on the area. Does anyone from biggerpockets invested in Single family homes in Pittsboro. Is this a good market to invest? How does the area did during 2008 recession. I am thinking of buying a turnkey property as a starter.

I am looking at the following investments

Asking price: 170K

Sqft: 1200

Average Rent: $1300

Built on 2010

Schools are 9+ Rating

Any suggestions on the invest property? Is this a good one. In other words, how does sucessful biggerpocket investers evaulate a home. Can you please post your suggestions for the benifit of me and other on how to evaluate a good deal.

I live in Atlanta area, here we have pockets of areas (East Cobb County, Forsyth County etc) where all the public schools are top ranked ones (Elementary, Middle and High School - 9+ Rating). I was looking for single family homes where I could get 1% rent. However there are none or  hard to get. The available homes with a minimum price range of 300K (Require some renovation). In summary this market is way saturated.

Having said that, I heard there are markets out there which meet both the criteria of good schools and great neighborhoods or locations and still meet the criteria of 1% (Close to). Does anybody in biggerpockets community have any experience investing in these areas? if so, what kind of locations or areas I should be looking. I am thinking of these areas where the market is slowly moving from B+ to A+ or growing areas where millennials are moving.

Can you post some success stories or provide recommendations which could be beneficial for beginners likes me. Thanks.

I am researching on investing in single family home in Alabama. I have done some research on the area. Does anyone from biggerpockets invested in Single family homes in Florence. Is this a good market to invest? How does the area did during 2008 recession. Being a university near by does it make sense to invest on single family home vs multifamily home or a town home? I am thinking of buying a turnkey property as a starter.

Lots of questions, any investment advise is welcome.

@Chad Seay did you find a property. I am also looking in to Summerville, Moncks Corner. How did it work out. Thanks 

@Ian Ippolito thanks for the insight 

In regards to your following comment, are you referring to crowdfunding? And what do you mean by low average, can you please provide more details 

“I'm personally invested in a fund with hundreds of NNNleases, where the sponsor has full real estate cycle experience, has low leverage (typically around 40”

@Ronald Rohde thanks for the insights . Yes, I will open an LLC before I start investing

FYI, I had some sort of experience in short term rental. The challenge there was finding good property management local company and it took a while to find one after changing couple of them who is not only good at marketing and good at managing

That’s the reason I wanted to start small, understand the waters and get some good experience 

@Joel Owens yes it make sense and some of these tenants are mom and pop or some sort of medical offices.

you have mentioned doing a syndicated NNN and doing so will the investor gets charged with hefty commissions and fees. What's the industry average and your advise on that. Some of them I have seen a down payment of 500K to start with

Looks like it’s very hard to get an initial breakthrough with out having large cash funds. I am sure most of them may have started small and eventually made their way so that they can invest with that kind of cash down payments. Do you have any advise for starters like me to reach that kind of a goal

Adding to that I was looking in to REIT crowd funding groups that will average out 6 to 8 % return. The fund managers manage large portfolio of NNN leases? Why is this different than syndicate NNN. What are the pros and cons

Thanks,

Vijay

@Robert Harpster hi, I am planning to go down in the same path and I was looking at a 600K single tenant property which is a national restaurant chain with about 3 years left in the lease.

Did you end up purchasing the property, if so,do you mind sharing your experience. Good things, things to watch out for the benefit of  newbie investers like me. Thanks

@Greg Dickerson thanks for your input on mortgages, that helps .

@Azeez K. many thanks for your insights. Do we run in to the maintenance issues including roof, structure even for absolute NNN leases. I was under the impression that absolute NNN leases have zero owner responsibilities. The roof, structure and external maintenance are Double or NN leases

It’s interesting to know that the average turn around period could be 12- 18 months in case of tenant going dark. In others words, one must be prepared to take that calculated risk of managing the mortgage payment till the new tenant signs a lease or there may be costs involved modifying the structure or inside to suit the needs of new tenant and costs could be higher. In other words it may be good to go for longer term leased tenant than the expiring soon kind of deals. This risk could go bigger as the dollar value of the investment grows

In regards to Maintenance, for primary or investment homes I can go for home warranty companies or home insurance that would cover most of the maintenance work. I am not sure if there are companies that do warranty for commercial properties 

Appears like if I go out of metro area like tier 2 cities I am finding national chains under 700 or 600K , do you forsee any issues there . In regards to investment do you suggest opening an LLC.

Thanks in advance,

Vijay