This is part 2 of my Real Estate Adventure series:
Part 1 – We’re buying a new property
The current situation
In my first update, I talked about my goal of finding a “good enough” deal in the Midwest. I planned on going with a turnkey provider who would also match me up with a lender and using the $15K from my car accident as the 20% downpayment.
Well, forget all that. There’s a new plan!
Here’s what’s happened:
- At Camp Mustache this year, all I heard was avoid turnkey. I couldn’t find anyone who recommended the turnkey strategy.
- I also kept hearing Boise. Three separate people recommended Boise to me as a great city to invest in. This was music to my ears because A. Boise is only 6 hours away from Portland and B. My dad grew up there and is pretty familiar with the area.
- I got hooked on the idea that I could pull equity out of my Portland SFR. That meant that I could purchase my next properties with cash and with a lower interest rate.
What I’ve learned
- Don’t reinvent the wheel. Instead of looking all over the country for a city to invest in, I decided to start simple and ask people I trust where they’ve invested.
- I only need a hot city if you want a hot deal. If I only want a “good enough” deal, I only need a “good enough” city.
- Invest in the area, not the city. If I can’t afford the city itself, I still might be able to afford the suburbs or nearby smaller cities.
- Just pick a place already! There’s nothing to replace hands-on experience, and every minute I wasted agonizing over which city to invest in was a minute that I could have spent getting real life knowledge.
At this point, I’ve settled on Boise and found the two markets I’m interested in: Nampa and Caldwell. They’re smaller, blue-collar cities 15-20 miles outside of Boise. While I haven’t given up entirely on Boise as a city to invest in, I just can’t seem to make the numbers work.
So what’s next?
- I need a realtor.
- I need a property manager.
- And finally, I need a deal!
Want to know what happens next? Read Part 3.