My FIRST Multifamily Real Estate Investment | Buying Rental Property Out Of State

My First Multifamily Real Estate Investment | Buying Rental Property Out Of State
In this video I talk about my buying my first multifamily rental property. This investment property in particular was a Triplex. Now the beauty of owning rental property is you can make money in multiple ways including cash flow, principal pay down, appreciation, tax benefits, and value add. Multifamily Real Estate Investing can be a great way to go if you're looking to get good cash flow.
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When you buy an investment property, you want to make sure it will cash flow properly and even better if there is the opportunity for value add. Well this property had both. Now this property was just my 2nd investment property I ever purchased and my first ever rehab out of state so needless to say I made some major mistakes along the way. One thing I should have done was check that the contractor was licensed. My contractor told me he was and I never checked until a while later and it turns out he wasn't telling the truth the whole time. Another major mistake was not replacing the plumbing on this project while the rehab was in full effect. Regardless of these mistakes, it still turned out to be a pretty good investment over all. The cash flow I'm able to get on this property is a good reason why I'm such a fan of out of State investing.
Whenever you're attempting Long Distance Real Estate investing, it's important to mitigate as much risk as possible. So working with contractors who are both licensed and insured gives you the opportunity to hold them accountable should something go wrong.
#RealEstateInvesting #LongDistanceRealEstateInvesting #MultifamilyRealEstate

[@lailaatallah1857]

What a FANTASTIC video! I learned more from you here than almost any other video I have watched on the subject. Thank you for sharing SO many specifics, financially, and giving the blow by blow on how it all went down and EXACTLY what you would do differently in the future.

[@jamesallenrealestate]

Thank you so much, I'm glad you found it really helpful!

[@columbus400]

I have started my real estate adventure purchased a duplex that I'm house hacking now about to do a cash out refinance to get another multi family!

[@jamesallenrealestate]

That's awesome, congrats!!

[@nenita_360]

So happy I found your channel! After college my boyfriend and I want to buy a multihome, live in one unit and rent out the others. Watching your videos are so helpful and informative!

[@vanessamontenegro5838]

This was so insightful! Thank you for this amazing content!

[@dasaralibegu2670]

Great breakdown! Went through the black and white steps and hurdles, and made it feel practical and applicable. Thank you for the hard work put into this!

[@DubaiWithPete]

Beautifully explained! One of the best I've seen so far. Well done James. I'll be keen to have a chat or meet with you when I visit the US.

[@zaziz8]

This is a really great video well done. I like how you are keeping it real on all of the issues. I did a cash out on a rental property I have free and clear and was thinking of doing a 16 unit in Cleveland. And get property management etc very little info on out of state investing

[@jamesallenrealestate]

Thanks, I'm glad you enjoyed it!

[@wnee1]

Great video! I’ll probably not ever buy a rental, but much of this is useful info anyway.

[@jk54204]

Can you do a video where you go online and find a property and go through an analysis of it as an example? Showing us what kinds of things you look for and whether you think it’s a good or bad property. Great video by the way!

[@jamesallenrealestate]

Glad you enjoyed the video and thanks for the suggestion!

[@jk54204]

@@jamesallenrealestate Your videos are so helpful. I live in an expensive market. I bought a house for 300K+ and I'm currently living in it. I'm looking to getting into out of state investing because of the cost of where I live. Its more realistic and it makes more sense to use a strategy like the one you use.

[@jamesallenrealestate]

I agree! It’s a great way to get started when you live in an expensive market. I used to live in Los Angeles County when I first started investing so I know exactly what you mean.

[@passiveincomewithapartment2828]

Nicely done!

[@jamesallenrealestate]

Thank you!

[@BreatheMeditationChannel]

Thanks for the vid - can you make a video on how to handle contractors when you’re out of state ? I know contractors have a notorious rep and I’m not sure how to manage as a new investor with no contractor experience and all while being out of state with a 9-5

[@jamesallenrealestate]

You got it and thank you for the video suggestion! You're absolutely right, contractors can be very difficult to deal with, especially when out of state.

[@jefflee5980]

I love your videos!!! Any tips on how we can get local management properties and how much they would usually charge?

[@jamesallenrealestate]

Thank you! For property management, you can look on google or get referrals from other investors. Normal rates are 8-10% of rent but also most charge leasing fees and re-leasing fees. Some will also charge a sub-contracting fee for any maintenance.

[@vvv_06]

How did you find the property manager? Tennessee is a great market but to find a good agent and a good property manager is a task in itself. Please help? Ty

[@jamescc2010]

Probably looking for multi unit that doesn’t need a lot of work in my case. I love state renovation might be a little bit too much for me.

[@TheAceMoneyShow]

So much value in just 5 mins.

[@jamesallenrealestate]

Thank you!

[@jamescc2010]

Probably looking for multi unit that doesn’t need a lot of work in my case. Olive’s at renovation might be a little bit too much for me.

[@jamescc2010]

Good info on the tax , and security deposit and rent. We need to have the checklist before submitting an offer. Did the guy commit suicide in the unit or outside? Even if I was inside do you have to disclose that? Yeah that’s horrible thing to experience.

[@toanjohnlam1340]

Mrs Jane is legit and her method works like magic I keep on earning every single week with her new strategy.

[@patriciamia753]

Wow I' m just shock someone mentioned expert Mrs Jane I thought I' m the only one trading with her,

[@patriciamia753]

She helped me recover what I lost trying to trade my self,

[@mikegeorge5569]

I think I'm blessed because if not I wouldn't have met someone who is as spectacular as expert Mrs Jane

[@mikegeorge5569]

I think she is the best broker I ever seen

[@livingspring7276]

Thanks for introducing me to Mrs Jane,,

[@jalabi99]

Subscribed!

[@jamesallenrealestate]

Love it, welcome to the channel!

[@djgainsbond]

Where would I find that contractors contract?

[@haileynichelle8343]

How do you know if you're ready to buy your 1st multifamily property? I have some cash, not a lot, but I think I could get financing for a modest property. The commitment to a mortgage and overall real estate process is intimidating though...

[@jamesallenrealestate]

That's a good question! I would say you're not ready to buy until you know what a good deal looks like in your market and have a good grasp of the basic fundamentals of real estate investing. Anyone can buy real estate, but what makes a successful real estate investor is buying good deals. In the meantime, I recommend reaching out to a couple lenders to see what you qualify for or what you could do that would help you to qualify in the future.

[@michaelarmstrong734]

🥂

[@jamesallenrealestate]

Where are you at in your real estate journey? Have you learned any major lessons along the way?

[@nenita_360]

Just educating myself as I work on my degree and save money!

[@ChrisChaos]

Selling a house to net and beat cap gains. About a week away from listing. I plan to use my profit, plus sell off a few stocks and purchase a rental. Multi family would be amazing! Being a noob to real estate, how do you find multi family rental properties? Where are those good deals?!?! Haha

[@davisholman6518]

C’Mon Folks - SMASH THAT LIKE BUTTON👍

[@walkbyfaithandbudget5718]

Do you have a worksheet you can provide to run numbers on an investment?

[@jamesallenrealestate]

Yep, you can download the spreadsheet I made for cash on cash return right here: www.dropbox.com/scl/fi/ynp2anhhlleakke7mc5re/Cash-Flow-Spreadsheet.xlsx?dl=0&rlkey=vvn8o7wz8r7vrrh7f1yt2ov40

[@walkbyfaithandbudget5718]

@@jamesallenrealestate thank you so much

[@eddiegajdosik7349]

How did you pay for the 77k rehab? Cash? I don't see any financing costs included for it.

[@jamesallenrealestate]

I paid it with cash

[@FoougieTV]

Hard money lender is considered cash.

[@investorfinancingpodcast]

@The Out of State Investor, Hi. Would love to have you as a guest on my podcast - let me know. Thanks.

[@jamesallenrealestate]

Thanks for reaching out! Feel free to shoot me an email at [e-mail] and we can talk further.

[@PORTMIAMIMIKE]

How many open loans can u have at 1 time?

[@jamesallenrealestate]

For conventional style loans, the limit is 10 loans per person. But you can keep doing commercial style loans after that.

[@moefraz4216]

Should out of state property be put in LLC?

[@jamesallenrealestate]

It's a good question but hard to give a straight answer to because there's pros and cons both ways. There are some good alternatives to putting a property in an LLC like adding umbrella policies, etc that help with the liability side of things.