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3 Comments

Validation: buying a property in public

Hi Everyone,

I've been lurking for a while. I'm exploring a few options, and this is one of them. Here's the pitch:

There are plenty of real estate blogs / newsletters / etc. They all give this great advice, but it's rarely relatable.

My background is in managing data for one of the largest cities in the country. I understand how cities work, where to find hidden data (such as where cities plan to invest), and how to evaluate the performance of an area.

I am starting the process of buying a first home/investment property. My strategy is a "house hack" where I use a loan to buy a multi-unit property and rent out the second unit.

I am pretty flexible and looking at multiple places across the United States. As a first time home buyer / investor, I'm trying to understand:

  • How mortgage and financing works
  • How to estimate rate of return on an investment
  • Estimating costs vs Costs / Cost of living

My experience becomes really handy when I'm looking at a local market.

  • Rent to Income ratios (drive tenant stability)
  • Government assistance programs (Section 8, landscaping, solar, etc)
  • Ease of permitting / building additions
  • Local market forecasts and performance
  • Estimating current and future amenities and how they influence price / rent growth or decline
  • Understanding population/crime rates of an area
  • Finding up and coming neighborhood

The audience here would be tech / data savvy people who are interested in buying an investment property and want to follow along on a journey.

This follows the notion of building in public, but not necessarily the tech perspective.

I would love to know what you think of the idea and whether it's worth pursuing!

on October 30, 2020
  1. 1

    Up until 2 years ago, I owned 5 apartments. I always tell people they should get that mortgage and let a tenant pay it (along with your groceries). Convinced one of my longest residing tenants to purchase a multi-family when he told me he was house searching.

    People are always perplexed and extremely interested in the idea. If you pull off the wow-factor and excitement of the process, I can surely see this working out.

  2. 1

    (1) I think this idea is intriguing. But don't take my word seriously, because I'm not in-market to buy a home.

    (2) If your plan is to buy the house anyway, it seems like documenting it along the way isn't THAT much extra work. Might as well try.

    (3) Getting traffic will be tough. Any plan on that front?

    (4) What is your plan to monetize? A natural one is some kind of info product (e.g. course/tool) or leadgen for local agents