Newbie w/ a 100k to start

Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes

Hi BP Family!

I want to start investing in RE to build a good cash flow. I'm not looking for flips since I never did this before, have no experience at all in this field but I do have access to 100k to start. I live in California kind hard to find cash flow properties here so I thought buying my first rental using a turn key company to buy out of state and start learning as we go.

I would like to know from you guys ( pros ) any ideas to start building a cash flow portfolio. I can't manage properties at this time by myself specially OOS. I'm a business owner, work long hours everyday but later on I want to make RE my primary source of income. Any advice will be appreciated.

Thank you guys and have a great day!

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Check out James Wise of Holton-Wise in Cleveland. Even if you don't use his services, he's a good example of someone that's hustling to help out-of-state investors make a good return on their money.

You can also read "Long-Distance Real Estate Investing" by David Greene. He gives you all the information you need to set up a team that can help you invest in other states.

The DIY Landlord Book4.7248 Reviews

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
Check out James Wise of Holton-Wise in Cleveland. Even if you don't use his services, he's a good example of someone that's hustling to help out-of-state investors make a good return on their money.
You can also read "Long-Distance Real Estate Investing" by David Greene. He gives you all the information you need to set up a team that can help you invest in other states.
The DIY Landlord Book4.7248 Reviews
Website View Page
7 Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
7y
Everything you've written tells me you are a cash partner...and need an active partner...preferably out of state
3 Reply
Brendan F. Nagle
Member since 2018 · 104 posts · 94 votes
7y
Could you use the 100k as a down payment for a House Hack. 3.5% down on up to a 2.8mil multifamily property in your area. Could be possible? House hacking would allow you control as you manage. I am a fan of options.
2 Reply
Andre Pinheiro
OP
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y

@Nathan Gesner I watch his videos often, great information there! @Joe Villeneuve Thank you Joe ! @Brendan F. Nagle Unfortunately I can't do that, I already own a house not moving anytime soon great schools for the kids, thank you guys!
0 Reply
Cameron TopePro Member
Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Andre Pinheiro I agree with @Nathan Gesner - if you want to invest out of state then check out David Greens book!

If you want to stay local then @Brendan F. Nagle, may have the strategy - house hacking.
It all depends what your long term goals are, which will help you make decisions today to reach those goals in the future.
[email protected]832-770-7090
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Andre Pinheiro:
Hi BP Family!
I want to start investing in RE to build a good cash flow. I'm not looking for flips since I never did this before, have no experience at all in this field but I do have access to 100k to start. I live in California kind hard to find cash flow properties here so I thought buying my first rental using a turn key company to buy out of state and start learning as we go.

I would like to know from you guys ( pros ) any ideas to start building a cash flow portfolio. I can't manage properties at this time by myself specially OOS. I'm a business owner, work long hours everyday but later on I want to make RE my primary source of income. Any advice will be appreciated.

Thank you guys and have a great day!

My advice would be to choose a stable midwestern matket and purchase B or C class assets with traditional financing.
6 Reply
Zoia Smith
Rental Property Investor · Los Angeles · Member since 2019 · 11 posts · 15 votes
7y
I also the advice given about reading David Greene's book. It has great advice about long distance investing. Have you considered investing in Bakersfield, CA. The prices are reasonable and within driving distance from Orange County. All the best!
0 Reply
Zoia Smith
Rental Property Investor · Los Angeles · Member since 2019 · 11 posts · 15 votes
7y
I also advise reading David Greene's book. It has great advice about long distance investing. Have you considered investing in Bakersfield, CA? The prices are reasonable and within driving distance from Orange County. All the best!
1 Reply
Andre Pinheiro
OP
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y
@Zoia Smith I Will look at bakersfield, I used to live in Santa Clarita, CA few years ago @Cameron Tope is this book?
"Giving It All Away…and Getting It All Back Again: The Way of Living Generously"
Thank you guys!
0 Reply
Andre Pinheiro
OP
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y
Originally posted by @James Wise:
Originally posted by @Andre Pinheiro:
Hi BP Family!
I want to start investing in RE to build a good cash flow. I'm not looking for flips since I never did this before, have no experience at all in this field but I do have access to 100k to start. I live in California kind hard to find cash flow properties here so I thought buying my first rental using a turn key company to buy out of state and start learning as we go.

I would like to know from you guys ( pros ) any ideas to start building a cash flow portfolio. I can't manage properties at this time by myself specially OOS. I'm a business owner, work long hours everyday but later on I want to make RE my primary source of income. Any advice will be appreciated.

Thank you guys and have a great day!

My advice would be to choose a stable midwestern matket and purchase B or C class assets with traditional financing.

@James Wise Thank you Sir, I watch your videos often...love it!
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Andre Pinheiro:
Originally posted by @James Wise:
Originally posted by @Andre Pinheiro:
Hi BP Family!
I want to start investing in RE to build a good cash flow. I'm not looking for flips since I never did this before, have no experience at all in this field but I do have access to 100k to start. I live in California kind hard to find cash flow properties here so I thought buying my first rental using a turn key company to buy out of state and start learning as we go.

I would like to know from you guys ( pros ) any ideas to start building a cash flow portfolio. I can't manage properties at this time by myself specially OOS. I'm a business owner, work long hours everyday but later on I want to make RE my primary source of income. Any advice will be appreciated.

Thank you guys and have a great day!

My advice would be to choose a stable midwestern matket and purchase B or C class assets with traditional financing.

@James Wise Thank you Sir, I watch your videos often...love it!

Thanks man. Glad you are enjoying them.
1 Reply
William Matory
Rental Property Investor · Jacksonville, NC · Member since 2019 · 18 posts · 16 votes
7y
@Andre Pinheiro
I’m currently stationed in Jacksonville, NC and have a solid team (Realtor/Property Manager/ Contractor) all under the same roof here in Onslow County, North Carolina.
Very easy to find “1%” properties from the 70k to 120k price point.
Most of the renters are military and some are capable of 1 year or more leases.
Would be happy to put you in touch with my team.
0 Reply
Andre Pinheiro
OP
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y
Found the book, thank you all!
0 Reply
Ali Boone
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
7y
Hi Andre, I'm in CA too (LA/Venice) and have primarily invested through the turnkey providers. If you decide to go that route, reach out anytime with questions if I can be of any help.
0 Reply
Cameron TopePro Member
Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
7y
Originally posted by @Andre Pinheiro:
@Zoia Smith I Will look at bakersfield, I used to live in Santa Clarita, CA few years ago @Cameron Tope is this book?
"Giving It All Away…and Getting It All Back Again: The Way of Living Generously"
Thank you guys!

Hey Andre, sorry for not being clear. It's David Greene's book on investing out of state.

https://www.amazon.com/Long-Distance-Real-Estate-Investing-State/dp/0997584750

Hope that helps and best of luck!
[email protected]832-770-7090
0 Reply
Enrique Huerta
Investor · Los Angeles, CA · Member since 2015 · 213 posts · 162 votes
7y
If you're an accredited investor interested in multifamily, it may make sense to make a passive investment with a reputable apartment syndicator. If you're not accredited, buying a smaller apartment building out of state and using a professional property manager would help build a reliable income stream for you and put your capital to work. PM me if you have any specific questions.
1 Reply
Jon Schwartz
Realtor · Los Angeles, CA · Member since 2018 · 952 posts · 1k+ votes
7y
@Andre Pinheiro, I'm in a similar boat (busy job, live in Socal) and I invested passively with an out-of-state syndicator in a small market in Indiana. I heard him on a podcast a few months ago, and we've been in touch since. I've developed trust in him. That'd be my advice to you: find solid operators in good markets, get to know them, and then pull the trigger on a passive investment in a few months' time. With the market where it is, there's really no rush.
0 Reply
Andre Pinheiro
OP
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y
@Jon Schwartz thank you Jonathan! I'm looking at Indy also...planning to go there soon
1 Reply
Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
7y
@Andre Pinheiro
Based on what you're saying, it doesn't sound like you have time to invest actively. There are multiple options within each niche, but you do need to figure out first how much time you can/want to devote to real estate investing. Here're a few articles to help you guide in the right direction:
https://www.biggerpockets.com/member-blogs/10850/84064-what-type-of-investor-to-be-when-i-grow-up-active-or-passiv
https://www.biggerpockets.com/member-blogs/10850/85836-should-i-buy-a-turn-key-property-or-invest-in-a-syndication

Reach out if you have any further questions.
Best!

0 Reply
Andre Pinheiro
OP
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y
Thank you very much Alina! Great post!

Originally posted by @Alina Trigub:
@Andre Pinheiro
Based on what you're saying, it doesn't sound like you have time to invest actively. There are multiple options within each niche, but you do need to figure out first how much time you can/want to devote to real estate investing. Here're a few articles to help you guide in the right direction:
https://www.biggerpockets.com/member-blogs/10850/84064-what-type-of-investor-to-be-when-i-grow-up-active-or-passiv
https://www.biggerpockets.com/member-blogs/10850/85836-should-i-buy-a-turn-key-property-or-invest-in-a-syndication

Reach out if you have any further questions.
Best!

0 Reply
Sanjeev Advani
Investor · Bakersfield, CA · Member since 2015 · 483 posts · 234 votes
7y
@Andre Pinheiro have you looked into the Bakersfield area? Feel free to look through some of my older posts for updates on the market. I would have to recommend this area for cash flow as you are still in CA and you are close to your property so if anything happens or a relationship goes sour it isnt hard to take the property back over and keep going. Not to mention the growth in the area right now, and the diversification of employment which is helping bring jobs to the area as well. Feel free to PM me to chat further as well!
Best
Sunny
1 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
7y
You could make a killing, long-term, with turn-key property. $100k is a lot and numerous companies would love to help you... so be careful. I agree with the other posts about looking in the the mid west. There is better cash flow opportunities in that area. If you don't like that idea make time to get hands on and go for a house hack or live-in flip.
0 Reply
Ivan BarrattBusiness Member
Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
7y
@Andre Pinheiro you'll need a lot more capital to make RE your primary source of income. I recommend getting back to basics in financial education before doing anything with your hard earned capital. Unless you're looking to start a job as a landlord of your own deals and hope to be financially free by the time you have grandchildren; you'll need a better plan.

The vast majority of highly successful real estate investors use a combination of the I and B (or S to a lesser extent) quadrants (read RichDad's Cash Flow Quadrant) to accelerate the passive income and wealth accumulation real estate done well can provide.

What source of income do you have now to funnel into real estate? The more you can focus on your current stream of income and how to grow it the better you'll do down the road using income property to accelerate the formula by growing the wealth bucket.

Lots of education comes first. :)

All the best man!
0 Reply
Justin Rank
Investor · Winhall, VT · Member since 2016 · 106 posts · 44 votes
7y
As mentioned above in many of the posts look out of state. You might want to look at partnering to learn the ropes with an active investor and get your feet wet.
0 Reply
Mike Anderson
Rental Property Investor · Salt Lake City, UT · Member since 2019 · 13 posts · 4 votes
7y
@Ali Boone would you care sharing some of your turn key knowledge and experience with me?
0 Reply

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