Becoming a Sponge

[Ben Hofstra]

Hello all, I am about half way through The Book on Rental Property Investing. As of right now I am just getting started and am welcoming any and all information that might be helpful. The one clear goal I have is to buy a property in September 2025, so that gives me about a year and a half to prepare. I am thinking that house hacking is the best fit for me, since I am currently renting with my girlfriend. I have done some conservative calculations based on my current cashflow and I can be confident that I will have at least $46,000 by that September 2025 milestone. My girlfriend will have between $20-30k. We are open to moving to any location within the United States. I'd love for y'all to soak this sponge! Book recommendations, financing recommendations, location spotlights and more are all welcome. Thank you!

[Min Zhang]

Hey Ben! Welcome to BiggerPockets! If you're planning to invest out-of-state, I recommend reading “Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties” - I found it to be very helpful when I got started investing 2.5 years ago.

Here is a summary of the book.

https://www.nateliason.com/notes/long-distance-real-estate-investing-david-greene

In terms of location, I like starting in the Midwest because it's affordable and offers good cash flow. Following David Green's Core 4 strategy (realtor, contractor, property manager, and lender) gives confidence to invest anywhere. I would say, the Ohio market in general is a very beginner friendly state to get started with your real estate journey. I have seen so much growth in Columbus when it comes to appreciation and job opportunities which I have experienced. On average, 80 people move into Columbus weekly. It has seen significant growth, especially with tech giants like Intel, Meta, Amazon, and Google setting up operations, driving up property prices and job opportunities. On the other hand, if you have a lower budget, let’s say $100-$150k. Cleveland would be a great market for you. I have experienced cash flow anywhere from 10-18% with so much more to offer. As a real estate agent and an investor, I am on the market daily and explore opportunities for myself and my clients. Let me know if you need assistance!

[Michael Smythe]

Look at buying a 2-4 unit, live in one unit, rent the rest.

You'll get an unbelievable education!

[Samuel Diouf]

Columbus, Ohio is a great market to consider if you're leaning towards appreciation. Multiple, billion dollar companies are investing heavy in our area, such as Intel, Google, and Amazon. Which will bring plenty of other investors and general business to the area. I moved here from Florida after seeing the projected growth.

[Ben Hofstra]

I'll definitely look into Columbus. That news is doubly good for me since I am an engineer/project manager. If the real estate and job markets are a good fit for me, it will be hard to say no. Does anyone have advice for the process of looking at an area and determining whether it is the right fit for them?

Thanks guys!

[Julio Gonzalez]

Welcome to BiggerPockets, Ben! 

I'd recommend these books: 
1. How to Win Friends and Influence Others
2. The Book on Tax Strategies
3. Tax-Free Wealth

I hope you find these valuable! 
-Julio

[Ben Hofstra]

Thank you Julio! I actually just finished reading the first book you recommended, and I can attest it is a fantastic read. I’ll make sure to add the other two to my list.

[Alfath Ahmed]

Quote from @Ben Hofstra:

Hello all, I am about half way through The Book on Rental Property Investing. As of right now I am just getting started and am welcoming any and all information that might be helpful. The one clear goal I have is to buy a property in September 2025, so that gives me about a year and a half to prepare. I am thinking that house hacking is the best fit for me, since I am currently renting with my girlfriend. I have done some conservative calculations based on my current cashflow and I can be confident that I will have at least $46,000 by that September 2025 milestone. My girlfriend will have between $20-30k. We are open to moving to any location within the United States. I'd love for y'all to soak this sponge! Book recommendations, financing recommendations, location spotlights and more are all welcome. Thank you!

Hey Ben, I personally invest in the Columbus market and have been doing it for the past couple years. I own several properties here in Columbus and it has been very nice considering Ohio is a landlord friendly state.

I also work with a ton of out-of-state investors who love investing here in the Columbus market. Most of my clientele are based in the west coast in California and Seattle. They have been investing in Columbus for the strong appreciation and cash flow.

[Wale Lawal]

@Ben Hofstra

To be ready for the purchase of property that you plan to undertake as from September 2025, read more about investing in real estate, set your standards and financial readiness in place. You could start saving and cutting your expenses aiming at arriving at that specific amount for a down payment on the day of purchase. Look out for probable markets taking into account issues revolving around employment opportunities, population shifts, tendencies in renting out homes coupled with economic stability. Think of home ownership without mortgage burdens as a way of making extra money through rent payments every month. In addition, get in touch with any real estate expert or anyone you trust willing to help in the process.

To keep abreast of market conversations, you can make use of such tools as MLS Listings, Zillow, and Redfin. Consider going through all available information concerning a property under consideration and establish much detailed financial plan. This will entail collaborating with a real estate team in order to take steps such as inspecting property or negotiating offers. Consequently it requires self-restraint, persistence, and being always ready to take initiative as you proceeds with your investment journey in housing business.

Good luck!

[Ben Hofstra]

Is Reafco a turnkey company? I am curious about whether or not working with one would be a good fit if I decide not to move.

[Ben Hofstra]

Quote from @Wale Lawal:

@Ben Hofstra

To be ready for the purchase of property that you plan to undertake as from September 2025, read more about investing in real estate, set your standards and financial readiness in place. You could start saving and cutting your expenses aiming at arriving at that specific amount for a down payment on the day of purchase. Look out for probable markets taking into account issues revolving around employment opportunities, population shifts, tendencies in renting out homes coupled with economic stability. Think of home ownership without mortgage burdens as a way of making extra money through rent payments every month. In addition, get in touch with any real estate expert or anyone you trust willing to help in the process.

To keep abreast of market conversations, you can make use of such tools as MLS Listings, Zillow, and Redfin. Consider going through all available information concerning a property under consideration and establish much detailed financial plan. This will entail collaborating with a real estate team in order to take steps such as inspecting property or negotiating offers. Consequently it requires self-restraint, persistence, and being always ready to take initiative as you proceeds with your investment journey in housing business.

Good luck!

 Thank you Wale, this is great holistic advice!

[Wale Lawal]

Quote from @Ben Hofstra:

Quote from @Wale Lawal:

@Ben Hofstra

To be ready for the purchase of property that you plan to undertake as from September 2025, read more about investing in real estate, set your standards and financial readiness in place. You could start saving and cutting your expenses aiming at arriving at that specific amount for a down payment on the day of purchase. Look out for probable markets taking into account issues revolving around employment opportunities, population shifts, tendencies in renting out homes coupled with economic stability. Think of home ownership without mortgage burdens as a way of making extra money through rent payments every month. In addition, get in touch with any real estate expert or anyone you trust willing to help in the process.

To keep abreast of market conversations, you can make use of such tools as MLS Listings, Zillow, and Redfin. Consider going through all available information concerning a property under consideration and establish much detailed financial plan. This will entail collaborating with a real estate team in order to take steps such as inspecting property or negotiating offers. Consequently it requires self-restraint, persistence, and being always ready to take initiative as you proceeds with your investment journey in housing business.

Good luck!

 Thank you Wale, this is great holistic advice!

 My pleasure!

Keep learning and growing.

[Remington Lyman]

Quote from @Ben Hofstra:

Is Reafco a turnkey company? I am curious about whether or not working with one would be a good fit if I decide not to move.

 No. It is a real estate brokerage