What would you do if you were in my shoes?

Question

Hi BP Community,

I keep getting all sorts of advice, from so many people wanting me to choose my first investment property in a way they best see fit, but it's becoming a little much, and it's getting harder and harder to understand what a good strategy would be, for me to follow. Yes, I know that REI can be done in many ways; that being said, what do you feel you would do in the current climate, if you were in my shoes?

Where I'm at atm:

20 y/o

Capital Saved: 35k-40k

1+ yr professional work history at 52k/yr

Based in Bay Area

I guess my main concerns are the prevailing market with RE valuation outlook for the next 2-3 yrs, and buying near or far(in or out of state).... the more insight the better! I've got a lot to learn now that some capital is ready. The goal is to grow my portfolio as fast as possible, to live a semi-retired lifestyle asap. Thank you very much! You guys are the best!

-Noor :)

Arlen Chou · Answer

@Noor Gill I am going to give you an answer that you probably don't want... I would put the breaks on and focus on patients and savings. There is a TON of crazy stuff going on right now in the economy that could create potential dangers in 2019. I have been aggressive these past few years in acquisition mode, but there are many indicators that are starting to pop up that make me rethink my plans for 2019. I realize that your question is about getting to FIRE as soon as possible, but real estate is a long game.

If I was your age and in your situation, I would go full cash accumulation mode. I would get my side hustles going, get my spending down as low as possible, get my credit score as high as I could, and try to get some real experience by working with/getting to know experienced guys in the market/business type that I am interested in exploring.

-Arlen

Angela Holmes · Answer

@Noor Gill I live in the Bay area too. I have experience being a landlord, because my Grandparents owned a four plex. They taught me how to manange the property in high school and I even learned how to do basic repairs after school. I say utilize the Bigger Pockets Calculator to make sure your ROI is worth the purchase. Try looking in Modesto and Tracy for more affordable rental units for sale that are within driving distance in the Bay Area.My sister and I are purchasing our first fourplex of our own in Modesto. Good luck

Henri Meli · Answer

@Noor Gill . You could go all cash and save.

Another option is you could also become a small lender. There are platforms, where you can lend others money. There are various strategies to use, when investing on those platforms: lending clubs, ... etc.

Noor Gill · Answer

@ArlenChou that's exactly the answer I was looking for 😁 Thank you very much!

Martin Neal · Answer

@Noor Gill well, I’m guessing you can’t find cash flow in the Bay Area so you definitely want to listen to the most recent podcast and invest a little farther out. Leveraging will help you grow faster. If you’re looking for a true education then listen to every podcast and read all the books by BiggerPockets. Hopes this advice helps, good luck!

What would you do if you were in my shoes?

What would you do if you were in my shoes?

Most Popular Reply

6 Replies