Wanting to start investing in real estate. BUT where to start?!

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Wanting to start investing in real estate. BUT where to start?!

Hansel Gunawan
Member since 2023 · 25 posts · 22 votes

Hey, I'm Hansel. I'm a software engineer that wants to start investing in real estate for my future.

Right now I live in Chino, CA. Property price in this area is around $700K-1M, which I don't think I can afford the monthly mortgage.

Should I start consider looking in other state? Also, which state is currently developing?

Also, what strategy is the best for first timer like me? 

I really need guidance.

Thanks!

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Randall AlanPro Member
Investor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
3y
Quote from @Hansel Gunawan:

Hey, I'm Hansel. I'm a software engineer that wants to start investing in real estate for my future.

Right now I live in Chino, CA. Property price in this area is around $700K-1M, which I don't think I can afford the monthly mortgage.

Should I start consider looking in other state? Also, which state is currently developing?

Also, what strategy is the best for first timer like me? 

I really need guidance.

Thanks!

 @Hansel Gunawan

Hi Hansel,

Your question is asked daily on the forums.  You can search previous answers using the magnifying glass on the top menu bar… just enter “getting started” or “newbie”, or any other question you have and you will likely instantly find your answer. (There are over 6 million forum posts you will be searching… lots of great info in there!)

In the meantime, see this thread where I linked sone great beginner guides offered on Bigger Pockets that will give you some really good advice on how to start:

https://www.biggerpockets.com/...

All the best!

Randy 

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  • Randall AlanPro Member
    Investor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Hansel Gunawan:

    Hey, I'm Hansel. I'm a software engineer that wants to start investing in real estate for my future.

    Right now I live in Chino, CA. Property price in this area is around $700K-1M, which I don't think I can afford the monthly mortgage.

    Should I start consider looking in other state? Also, which state is currently developing?

    Also, what strategy is the best for first timer like me? 

    I really need guidance.

    Thanks!

     @Hansel Gunawan

    Hi Hansel,

    Your question is asked daily on the forums.  You can search previous answers using the magnifying glass on the top menu bar… just enter “getting started” or “newbie”, or any other question you have and you will likely instantly find your answer. (There are over 6 million forum posts you will be searching… lots of great info in there!)

    In the meantime, see this thread where I linked sone great beginner guides offered on Bigger Pockets that will give you some really good advice on how to start:

    https://www.biggerpockets.com/...

    All the best!

    Randy 

    2Reply
  • Hansel Gunawan
    OP
    Member since 2023 · 25 posts · 22 votes
    3y

    Thanks @Randall Alan for replying my question. I have tons of question in my head right now. I'm very very new in this field and really want to get serious in the business! 

    0Reply
  • Lara Pfeffer
    Member since 2023 · 29 posts · 13 votes
    3y
    Quote from @Hansel Gunawan:

    Thanks @Randall Alan for replying my question. I have tons of question in my head right now. I'm very very new in this field and really want to get serious in the business! 


     Hi! I'm very new also, but before I went "pro" here, I spent many hours listening to BP podcasts & you tubes. In search box of the Bigger Pockets channel, enter "new investor" or subject you specifically want to learn, on your podcast or you tube platform (I have Spotify & have a FREE You Tube account). Good luck (we make our own luck, go for it!!)

    1Reply
  • Hamp Lee IIIPro Member
    Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
    3y

    If you don’t purchase an owner-occupied property, I recommend starting with cities in California like Fresno, Modesto, or Bakersfield.

    0Reply
  • Stephanie Walker
    Realtor · Charlotte, NC · Member since 2023 · 245 posts · 231 votes
    3y

    Do you have family or friends in other states? A lot of our investor clients choose Charlotte partly because they have some "boots on the ground". That might be a good place to start!

    2Reply
  • Bryce JamisonPro Member
    Rental Property Investor · Mebane, NC · Member since 2015 · 494 posts · 439 votes
    3y

    If you're new to investing I recommend starting with something "easy". I would define easy as something that you're comfortable with, have some knowledge about, is relatively close to you, and is at a price point that allows you to float the mortgage for a few months in case of trouble. Having a large emergency found also makes things easier / less stressful. I like the idea of investing locally to start simply because you'll be able to get there faster and easier for things like inspections, showings, repairs, and everything else. Plus you already know the area and the places people want to live.

    If you're struggling with finding a niche that you want to get into start listening to the family of BP podcast to get some inspiration. If Chino properties are too expensive try looking at areas within an hour or two drive from you before looking states away.

    1Reply
  • Yue Lehman
    Realtor · Fresno, CA · Member since 2020 · 87 posts · 41 votes
    3y

    Hi Hansel, 

    My opinion might be different from many on BP. If the price in Chino is very expensive already, do you think it'll get even more expensive in 5 to 10 years? If so, you might want to consider getting into the market (or nearby but a little cheaper market) by purchasing a primary residence that you can afford, and get a few roommates to pay down your mortgage and potentially reduce your cost of living. Most primary residence purchase loans require as little as 3 to 5% down, and you would need to qualify for the monthly payment on the remaining amount, as well as property taxes, insurance, etc. The best way would be to talk to a mortgage lender to see if you qualify. 

    By starting in your local area, you learn how to take care of a property in person, how to be a landlord, and can put 5% down on a 700k property instead of 20% to 25% down on a $400k property (cheaper areas in CA like Fresno County). Within 2 to 5 years, you'll probably learn a lot about real estate investing and landlording, and hopefully save up more money along the way, and maybe harvest the appreciation on your primary residence to invest on a second property. 

    People call this strategy "house hacking", and if you search the term on BP, you'll find a ton more articles and posts on the subject. 

    0Reply
  • Jimmy Bostic
    Investor · Columbus, OH · Member since 2023 · 73 posts · 82 votes
    3y

    @Hansel Gunawan I think you have a couple of options. If you want to stay local, I'd advise househacking, multifamily if you could. But, given California's prices, I think investing oos would allow your money to work harder. 

    You should consider the midwest to invest in, specifically Ohio. The Columbus market is a great consideration.

    1Reply
  • Kyle Oyer
    Specialist · Phoenix, AZ · Member since 2023 · 33 posts · 20 votes
    3y

    @Hansel Gunawan I would love to connect with you to see if I can help. My business partners and I have investment properties all around the country. 

    0Reply
  • Nader Shariff
    Detroit, MI · Member since 2020 · 150 posts · 68 votes
    3y

    I would strongly suggest looking out of state. 

    I am originally from NYC and the price points are very high as well. 

    I actually ended up investing in the mid-west where the price points where much lower and the returns where much higher - specifically in Detroit, MI, where I've found a lot of success.

    Happy to connect and share my experiences with you - should you ever want to chat !

    0Reply
  • Julien J.
    Investor · CO · Member since 2016 · 757 posts · 1k+ votes
    3y

    I'd suggest looking into househacking. A duplex preferably.

    0Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
    3y
    Quote from @Hansel Gunawan:

    Hey, I'm Hansel. I'm a software engineer that wants to start investing in real estate for my future.

    Right now I live in Chino, CA. Property price in this area is around $700K-1M, which I don't think I can afford the monthly mortgage.

    Should I start consider looking in other state? Also, which state is currently developing?

    Also, what strategy is the best for first timer like me? 

    I really need guidance.

    Thanks!


    Pick any strategy, then invest in the wonderful town of Columbus, OH. Home to The Ohio State University with nearly 60,000 students, 5 Fortune 500 companies, over +25% population change since 2000, and the 2016 smart city challenge award winner (https://www.columbus.gov/smartcity/). Furthermore, Intel is spending 20 Billion dollars to build two semiconductor plants, and many more great things presently and coming in the future. Needless to say, Columbus will remain a strong real estate
    market for the foreseeable future.





    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Hansel Gunawan:

    Hey, I'm Hansel. I'm a software engineer that wants to start investing in real estate for my future.

    Right now I live in Chino, CA. Property price in this area is around $700K-1M, which I don't think I can afford the monthly mortgage.

    Should I start consider looking in other state? Also, which state is currently developing?

    Also, what strategy is the best for first timer like me? 

    I really need guidance.

    Thanks!

    Hey Hansel, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out! 

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9122 Reviews
    WebsiteView Page
    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Hansel Gunawan
    If you're not able to invest locally, you should invest out of state. I would recommend looking in the Midwest. Columbus, OH is a great place to start looking in the Midwest. It's a nice balance of cash flow and appreciation. Also, it has lots of job opportunities and population growth. I also live and invest locally here in Columbus.

    [email protected]614-412-4565
    Reafco-556 Reviews
    View Page
    0Reply
  • Brad S.
    Investor · Pasadena, CA · Member since 2017 · 613 posts · 523 votes
    3y

    @Hansel Gunawan

    Hey Hansel, the first step, as always, is not to look for specific properties, areas, or anything else, until you look "inside" and get clearer as to your goals and your "whys" of wanting to invest. For example, you may come to the conclusion that "In 10 years I want to have enough passive income to blah, blah, blah." Or "I want to have $10k/mth in net rental income to replace my job in 10 years." Or, " I want to have a net worth of 2 million in 10 years." etc, etc, etc. Then you'd have a reference to help you clarify those goals and that will help lead you to specifics -property types, investment options, areas, etc

    But, just "investing in real estate for my future." is not enough. It's a start, but you may want to clarify that more. Then you'd get into other questions: Do you like your job? How secure is it in the longterm? How much income potential is there? What are my current expenses? etc. 

    All this info will help guide you to what type of investing and areas to search for, etc.

    I am sure there are guides in how to do this, but I am not sure exactly where. I have seen some long posts about clarifying your goals in the past. You may have to search for them. 

    0Reply
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