Investing with 20k in SoCal?

10 Replies

I don't know how you would use $20k in SoCal. That will barely even buy you a bathroom here. The closest I can think of is if you were going to house-hack and you could get an FHA loan (~3.5% down) on a ~$550k house. Not sure where you'd find a MFR for that little...couldn't be anywhere good...but even if you could, I wouldn't expect a lot of profit from that type of investment here with those numbers. Unfortunately that amount of capital is more likely to put you into out-of-state investing. Which, a lot of us do.

Originally posted by @Mike Chu :

Hi guys, 

How would you guys use 20k to invest RE in? (SoCal, where houses near me are all at least 650k+ )

Any advice/tips are welcomed. 

Invest in a private mortgage and make 12%.


@Mike Chu You can enter the space as a wholesaler. You will need that 20k as operating expenses pretty much, but it can be done. Otherwise, move your focus to the midwest where your money might actually buy you a door.

Run the numbers it's not going to happen with $20k in SoCal. Focus on making more money and saving until your funds are ready. Jumping in too early and being under funded is one of the most common mistakes. This doesn't mean you can't be an investor just means you can't invest today. Focus on making money, 100% of your attention on that nothing else. That is the best advice I can give. 

Honestly with that amount it's best to just save it while you learn the ropes. You could try to wholesale but learning how to do well takes time and can get costly. Either you pay a guru to hold your hand or you learn expensive lessons quick. My recommendation would be to network with as many like minded investors, save up your money and maybe look for a potential partner. Good luck!!

@Mike Chu understood! If you're committed to staying in socal saving is a great idea right now because we're at the top of a market cycle. Maybe by the time, we start to see a decline in the economy and prices are more approachable, you'll have saved enough. Let's hope the stars align! 

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