First time investor in Long Beach California and need help!

Rental Property Investor · Long Beach, CA · Member since 2018 · 28 posts · 6 votes

Hi, I am a first time investor. I make roughly 65k a year and have been saving for 2 years with about 20k to my name and am tired of living mediocre and want to invest into rental properties but am a total rookie and I will not pretend otherwise. I live in Long Beach, Ca and my goal is to do the ole house hack trick with 3.5% down and and live “for free” for a year and save all the money I have and put a hefty down payment next year on a property out of state. The problem is I LIVE IN CALIFORNIA which is a horrible place to start (from what I hear) but my job is here so I have no choice. What are your thoughts on this and If you have suggestions I would love to hear them! I am a sponge to any good ideas! Thank you so much. Signed, Brandon

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Corby GoadeBusiness Member

Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes

Of course you can move, that's silly to think otherwise. The longer you wait, the less possible it will be for you to move and invest elsewhere. If you want to create a better life, then do what you need to do to create a better life. When I was working an office job, I don't think I ever made more than you make and I bought properties on a regular basis- not in California. People are leaving California in droves, especially investors, because of taxation and over regulation. You can work, live and invest anywhere, people are doing it every day. You can come visit me in Idaho and I'll show you exactly how you can do it here, or anywhere else, for that matter.

Don't think anything is impossible, it's not, just difficult, but you have to make sacrifices to get what you want. Best of luck!

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William B.
Contractor · PNW · Member since 2017 · 58 posts · 48 votes
8y
@Brandon McLendon Good work saving. You need to read/listen to the book: Long-Distance Real estate investing by David Greene Also check out this guys notes on that book: https://www.biggerpockets.com/forums/79/topics/524858-david-greene-long-distance-rei-book-notes Be advised this advice is given from the fully reclined position of the most comfortable chair in my house on Saturday night, use at your own risk.
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Dylan VargasPro Member
Rental Property Investor · Chico, CA · Member since 2016 · 625 posts · 336 votes
8y
@Brandon McLendon Welcome! Good job on saving some money. I would start in your own backyard. Learn your local market (this is free/minimal cost to do) and find a deal. You will be able to make money and see first hand what you are investing in. If and when you find a deal you can always reach out to a partner with more resources but will probably be able to do this on your own. Do some practice deals and follow the market. I was and am on Zillow, Realtor.com , Craigslist etc every day. You can follow other deals people have performed. This is invaluable and FREE! You have an income and are able to house hack so you are in a perfect position to be honest. Not to mention market shifting a touch so a good time to learn. Good luck and keep us posted.
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Brandon McLendon
OP
Rental Property Investor · Long Beach, CA · Member since 2018 · 28 posts · 6 votes
8y
Thank you so much this helps a lot! I do take this advice and have already started researching in my area.. and I will continue to so for the next year while I save more and become more and more familiar with this system! Thanks again!
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Bryan ZuetelPro Member
Attorney · Orange County, CA · Member since 2017 · 242 posts · 99 votes
8y
@Brandon McLendon, in Long Beach, you have some great options to buy with an FHA 3.5% down program. There are many singles and 2-4 units that could use some work in Long Beach and surrounding areas. Stay close to Long Beach for your property, if you have that luxury.
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Brandon McLendon
OP
Rental Property Investor · Long Beach, CA · Member since 2018 · 28 posts · 6 votes
8y
@Bryan Zuetel thank you very much, I will keep my eye to the streets for a while and see what I come up with! This is helpful thanks. If you have any other info that you think would be helpful I’m all ears.. but i will stay in Long Beach and look around for a 3-4 unit place
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Brandon McLendon
OP
Rental Property Investor · Long Beach, CA · Member since 2018 · 28 posts · 6 votes
8y
@Dylan Vargas @William B.
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Christian BachelderBusiness Member
Real Estate Broker · Marina del Rey, CA · Member since 2018 · 105 posts · 25 votes
8y
Hey Brandon and welcome to BP! It is such a great resource for those starting out on their path to a better life of financial independence!
I would love to connect sometime. I run a real estate and mortgage brokerage out of Los Angeles and am very familiar with the Long Beach market. If you ever have any questions about loan options, and how they may fit your needs with a specific property, I would love to get in touch. Always happy to help out even if it just leads to a word of advice. I'll drop you a message as well with my contact info.
Good Luck!
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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
8y
Of course you can move, that's silly to think otherwise. The longer you wait, the less possible it will be for you to move and invest elsewhere. If you want to create a better life, then do what you need to do to create a better life. When I was working an office job, I don't think I ever made more than you make and I bought properties on a regular basis- not in California. People are leaving California in droves, especially investors, because of taxation and over regulation. You can work, live and invest anywhere, people are doing it every day. You can come visit me in Idaho and I'll show you exactly how you can do it here, or anywhere else, for that matter.
Don't think anything is impossible, it's not, just difficult, but you have to make sacrifices to get what you want. Best of luck!
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Ali Boone
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
8y
Well, to make it easy, I'd say just look at the numbers. Will you profit from the house-hack with 3.5% down? How do those numbers compare to if you kept renting? Could you rent your place and invest out-of-state solely....would that be more profitable for the bottom line? I'd say just run numbers all over the place and see what it looks like.
As general thoughts:
For house-hacking-
https://www.biggerpockets.com/renewsblog/considera...
For buying your own house vs. an investment property (which is a bit different than doing the house-hack bit but similar premises)-
https://www.biggerpockets.com/renewsblog/2014/01/1...
I just offer those as bigger picture things to consider along the way. Obviously you can probably tell what my stance on things is- I rent my place here in LA and invest out-of-state mostly- but things to consider no matter which way you decide to go.
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Chace Fraser
Realtor · Portland, OR · Member since 2017 · 357 posts · 259 votes
8y
Hi @Brandon McLendon all the info you're getting here is great. When house hacking in markets such as yours, it can be tough to cash flow without putting a whole bunch of money down. But two things to keep in mind; first, if you buy a plex you can also find a roommate for the unit you live in as well. Second, as Coach Carson put it, “But even if your house hack reduced your payment from $1,200 to $600 per month, would that not be a win? I think so.”
Good luck on your journey and keep us updated!
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