Irvine, CA · Member since 2016 · 27 posts · 3 votes
Hello BiggerPockets Community,
I am looking to purchase my first real estate deal and have saved up about $150k in cash to purchase my first deal. I have been learning a lot about multifamily apartments and storage units and am interested in purchasing my first deal and officially getting into real estate. Obviously here in Orange County, $150k doesn't get you anything even with the leverage as its limited to a deal of $600k. Is anyone here that is successful in real estate with a strong track record doing partnerships and buying deals with other members?
Their are so many markets out there. It is definitely harder to find multi-family here in SoCal that cashflows at a reasonable return. One thing you have to consider is, what kinda of returns are you looking to get? What type of tenants are you looking to serve? Do you want cashflow or a combination of appreciation too? Are you open for lower income section 8 housing? You can do a BRRR strategy on a nice vacant apartment building. Some midwest markets are booming, but you have to be careful of course. We buy and hold for cashflow in Indianapolis and Midwest. Will be happy to chat some more!
Irvine, CA · Member since 2016 · 27 posts · 3 votes
9y
I am also not limited to California and have actually read that avoiding California may be a good idea. I have family in North Carolina and grew up there but am open to other states as well. I am looking for strong cashflow and potential appreciation for high cash on cash returns.
For high cash flow, look in different states nearby, preferably in cities with a population of 40-75,000 people in it.
I've thought about Nevada and Arizona due to real estate being much more affordable and being relatively close to where I live. Also I see you are in Tampa, that's where I was born!
Arizona is a good choice considering your location. Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To", apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc.. Decide how much money you have access to, & the zip codes, city or state you want to focus on. That will determine the next step. Outline where you want to be in five years. Put it all in writing. Start working your plan. There are plenty of people around to help you each step of the way. Drop me a line if I can help.
Arizona is a good choice considering your location. Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To", apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc.. Decide how much money you have access to, & the zip codes, city or state you want to focus on. That will determine the next step. Outline where you want to be in five years. Put it all in writing. Start working your plan. There are plenty of people around to help you each step of the way. Drop me a line if I can help.
Hello Ken, thanks for your response. I am definitely looking for Buy & Hold Multifamily with positive cashflow and am currently looking for deals and opportunities that would qualify for $100k to $150k down.
Property Manager · Queen Creek, AZ · Member since 2016 · 608 posts · 426 votes
9y
@Nick McCandless Arizona is often a great spot for CA investors. You are correct, prices are much more affordable and we also continue to see strong rental demand. I currently have zero vacancies on properties.
Always happy to answer any and all questions, how could I assist you?
Avondale, AZ · Member since 2017 · 46 posts · 7 votes
9y
Hi Nick,
There are many different options you can do that is more affordable here in Arizona and with getting good returns on your money. Two options that I have been analyzing deals on is with flipping houses and buy and hold (rentals) here. Depending on what areas of Arizona there are people that are making very decent returns from flipping houses.
There are many different options you can do that is more affordable here in Arizona and with getting good returns on your money. Two options that I have been analyzing deals on is with flipping houses and buy and hold (rentals) here. Depending on what areas of Arizona there are people that are making very decent returns from flipping houses.
Hello Anissa,
I am not currently interested in flipping but certainly the buy and hold approach.
Avondale, AZ · Member since 2017 · 46 posts · 7 votes
9y
@Nick McCandless The buy and hold approach is great to do also. Being able to collect a monthly cash flow and down in the line you have equity paid down to your advantage to help in different ways financially.
@Nick McCandless The buy and hold approach is great to do also. Being able to collect a monthly cash flow and down in the line you have equity paid down to your advantage to help in different ways financially.
Exactly! Plus the many tax benefits and if the property appreciates, the leverage opens up huge opportunities.
Their are so many markets out there. It is definitely harder to find multi-family here in SoCal that cashflows at a reasonable return. One thing you have to consider is, what kinda of returns are you looking to get? What type of tenants are you looking to serve? Do you want cashflow or a combination of appreciation too? Are you open for lower income section 8 housing? You can do a BRRR strategy on a nice vacant apartment building. Some midwest markets are booming, but you have to be careful of course. We buy and hold for cashflow in Indianapolis and Midwest. Will be happy to chat some more!
Their are so many markets out there. It is definitely harder to find multi-family here in SoCal that cashflows at a reasonable return. One thing you have to consider is, what kinda of returns are you looking to get? What type of tenants are you looking to serve? Do you want cashflow or a combination of appreciation too? Are you open for lower income section 8 housing? You can do a BRRR strategy on a nice vacant apartment building. Some midwest markets are booming, but you have to be careful of course. We buy and hold for cashflow in Indianapolis and Midwest. Will be happy to chat some more!
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Hey Nick! Just up from you, in LA (Venice). I've always done buy and hold and done them out-of-state for the obvious stated reasons.
Are you leaning towards residential or commercial? All of my properties are residential but I've more recently been looking at some commercial options (storages being one of them). Commercial is the same as residential as far as CA not doing you any favors. Just because the land is more expensive, it cuts the returns on the commercial buildings. Like if you do a NNN deal (like a fast food restaurant or something), you can buy the same thing outside of CA and automatically receive higher returns on it.
Let me know on residential vs. commercial and I might be able to offer some advice. If you have $150k, you can either put that full amount towards a commercial property or you can split it up into several down payments on cash-flowing residential properties. The returns (if you buy right) will likely be higher on the residential properties, but there's of course some advantages of going commercial and having less hassle.
Investor · Brooklyn, NY · Member since 2015 · 15 posts · 5 votes
9y
i also live in an expensive area NYC. a lot of investors i know invest in cheaper states and they do very well! for $150k you would be suprised at what you can get!
i have been in Real Estate for a while . i am a landlord here in nyc. if you want you can contact me through bigger pockets and we can discuss what options you have (maybe ill be interested in investing with you!!) anyways good luck finding the right properties for the right amount and finding good investors!
Hey Nick! Just up from you, in LA (Venice). I've always done buy and hold and done them out-of-state for the obvious stated reasons.
Are you leaning towards residential or commercial? All of my properties are residential but I've more recently been looking at some commercial options (storages being one of them). Commercial is the same as residential as far as CA not doing you any favors. Just because the land is more expensive, it cuts the returns on the commercial buildings. Like if you do a NNN deal (like a fast food restaurant or something), you can buy the same thing outside of CA and automatically receive higher returns on it.
Let me know on residential vs. commercial and I might be able to offer some advice. If you have $150k, you can either put that full amount towards a commercial property or you can split it up into several down payments on cash-flowing residential properties. The returns (if you buy right) will likely be higher on the residential properties, but there's of course some advantages of going commercial and having less hassle.
Let me know, happy to advise.
Hey Ali,
I just sent a colleague request, I look forward to connecting :)
i also live in an expensive area NYC. a lot of investors i know invest in cheaper states and they do very well! for $150k you would be suprised at what you can get!
i have been in Real Estate for a while . i am a landlord here in nyc. if you want you can contact me through bigger pockets and we can discuss what options you have (maybe ill be interested in investing with you!!) anyways good luck finding the right properties for the right amount and finding good investors!
Austin, TX · Member since 2016 · 45 posts · 24 votes
9y
Use that money as a down payment. You don't need to have the purchase price ready to spend in order to buy a property. But partnerships are one of the best and most popular financing strategies with almost all investors.
Use that money as a down payment. You don't need to have the purchase price ready to spend in order to buy a property. But partnerships are one of the best and most popular financing strategies with almost all investors.
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
9y
@Nick McCandless are you looking to do a buy and hold with partners or to just own it solo? The Midwest has a lot of turn key properties that are in expensive. I live part time in California and part time in Arizona and I like investing in Arizona because it is landlord friendly rather than tenant friendly.
@Nick McCandless are you looking to do a buy and hold with partners or to just own it solo? The Midwest has a lot of turn key properties that are in expensive. I live part time in California and part time in Arizona and I like investing in Arizona because it is landlord friendly rather than tenant friendly.