Real Estate Agent · Cypress, CA · Member since 2018 · 88 posts · 41 votes
Hi BP family!
My name is Jason, I am 25 years old, and I currently live in Orange County, California. I am looking to invest! Okay, more specifically I feel like my FIRST purchase should be a Duplex or a Condo/Townhome. My plan is to go with a FHA Loan, if possible, because I will Owner Occupy the property and rent out the remaining rooms. 3 Bed/2 bath would be ideal.
The issues I am having is:
- Cost of Real Estate in Orange County.
- Are we due for a Economy Fix (Is it the right time to buy/invest?)
- How do I know I am getting a "Deal"?
- I have yet to speak to a Real Estate Agent or Lender because I just started a job so I am assuming my Pre Approval will be a low amount.
- I have too many questions to list for my first post.
Bakersfield, CA · Member since 2016 · 378 posts · 307 votes
8y
You haven't spoke to a lender yet? How do you know if you qualify for a loan at all? Whether a duplex or townhome is better for you means nothing if you can't qualify for the financing anyway. If you just started a job, you may not qualify for a loan for quite a long time depending on your college/work/life situation.
I suggest completing step 1 (getting prequalified) before spending time an energy on everything else that follows.
Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
8y
Jason Martinez welcome to BP. Let’s see if we can answer some of your questions. First of all congrats about thinking about your future at such an early age. I purchased my first home at 20 years old.
- Cost of Real Estate in Orange County.
We are back at top of the market. I do NOT recommend any buy and holds right now. If you are going to purchase as a principal residence then you are looking at an appreciation play.
- Are we due for a Economy Fix (Is it the right time to buy/invest?
My opinion above.
- How do I know I am getting a "Deal"?
Work with an experienced investor/agent who can advise you properly. I buy flips at 80% of ARV in Orange County.
- I have yet to speak to a Real Estate Agent or Lender because I just started a job so I am assuming my Pre Approval will be a low amount.
If you really want to know what you can buy then start with a pre approval. I can recommend both a lender and agent.
Good investing
In light of the fact that you are newly employed you are better off waiting till you have two years in the same job before beginning. The time will allow you to educate yourself on finances, real estate and investing in general. Additionally you can use the time to maximise your savings. You need cash to invest, the more the better.
Additionally, due to your age, you may wish to investigate investing out of state and take advantage of your situation to relocate perminantly to that area. Now would be a good time in your life to make the move.
Real Estate Agent · Cypress, CA · Member since 2018 · 88 posts · 41 votes
8y
First off, thank you all for taking the time to share your advice.
@Joe Homs - I was hesitant due to the market being so high. I just don't know any real estate investors to personally talk to.
I certainly did not want to impulse buy, but living at home still annoys me. In contrast I am not looking to waste money renting either.
I will definitely consider your recommendation for a lender/agent. It would be probably be a good idea to see what I can qualify for now. That way when I am really looking to buy the loan amount will obviously go up due to savings and job reliability.
Real Estate Agent · Cypress, CA · Member since 2018 · 88 posts · 41 votes
8y
@Thomas S. - Would you say investing out of state would be a good idea for my first purchase? I may know basic expenses, but haven't been able to personally manage my own property.
I have fathomed the idea to purchase in an inexpensive state and have a Property Management Company take care of tenants, the property, and vacancies.