All Forum Posts by: Vincent Crane

You could put down 20k on a turnkey triplex that costs 100k and probably cashflow about $800 a month off of it in cheaper markets, you'd just have to study a certain area, like somewhere in tennessee, ohio, indiana, north carolina. Maybe consider reaching out to someone on BP who invests from coast to coast, there's many of them on here. But in your market it should be enough for a duplex downpayment if you can house hack, depending on prices. But if it's under 300k you'd probably be fine.

1. @Account Closed

 I agree completely Bob, but SF is unaffordable for most people and it's extremely difficult to predict what markets will have their rent double over the next 5 years. I did mention that looking for appreciation is important since the appreciation is what justifies the massive rent increase that SF has seen. I don't think someone should buy a cheap property in the middle of no where just because it meets the 2% rule. I definitely think the area is extremely important. For example, Houston saw massive appreciation last year, as did northern Atlanta, and much of the west coast. The only problem is that it's a double edge sword. Typically the areas that see that big appreciation are in expensive areas that most early investors can't afford, myself included.

Thoughts?

Fellipe,

Definitely choose a certain area based on price to rent ratios and a place you expect to see some appreciation as well. As said earlier, Hawaii, FL, VA, aren't known for cashflow. However there are a lot of markets that might be better, in texas, the southeast like memphis, certainly much better ratios that what you'll find on the west coast. Try and pick one specific area and become an expert in that area and speak with some BP members who live there to get an inside look into the quality of a specific area first. Your goals are attainable for sure, just has to be in the right market, there's a lot of research to be done. Rentometer.com should help you see what rental rates are going for anywhere you look so that should be useful.

Welcome James, Atlanta has a very big REI presence here on BP. I'd also recommend attending REIA events near you and there are BP meetups in Atl as well. Maybe @Azeez K.

 can fill you in on the next meet up?

@John Quebedeaux

Great post on ARV and rehab costs/profit. Definitely appreciate the deep insight and explanation. Thanks

This is awful. By paying cash on one property he's missing out on leverage on multiple properties he can have instead. It sounds like he doesn't know how to analyze a deal. 99% of properties don't cashflow and I don't think he understands how to look through everything on the market to really find the ones worth buying. I'd recommend he spend some time on BP learning about deal analysis and using a BP cashflow calculator to get a big picture of the cashflow and really account for the expenses associated with the purchases. There's no reason to buy a negative cashflow property and speculating on appreciation isn't a wise move. You should aim for around $200/mo in positive cashflow per door. If he has that much money he could've bought a $400k multi that cashflows over $1k per month pretty easily. If there aren't cashflowing deals in the area he lives, maybe he should consider investment in another market altogether. Hope this helps.

This is my favorite article I've seen on BP. It goes over all the basics in a way that anyone can understand. It's completely comprehensive and I've rarely seen so much tangible education that makes so much sense in such a small space. Absolute gold.

1. @Mindy Jensen and @J Scott

 That's a really good point, those are great points that it could end up costing more that you'd make in rent. Definitely some great advice.

@Account Closed

Thanks for the links Bob!