Updated about 5 years ago on . Most recent reply
looking for investment ideas
Keep in mind, this is in California ( Santa Cruz County ): I'm a Self-employed General Contractor, have good credit, and money saved up. In my mind, the best scenario for me would be to buy a fixer, the worse condition the better, for a deep discount, live in while fixing up and rent a room or 2 out at the same time, if is feasible. Ideally have an ADU separate from house as a rental while fixing up main house. The prices near me scare the hell out me, and looking at areas about a 3 hour drive inland , Somewhere I can be a cash buyer, in the hopes of finding a motivated seller who is willing to sell on a discount in exchange for a hassle free, quick closing. If bought 3 hours away, then I would give up being a primary residence, and the tax benefits that go along with that while selling after 2 of 5 previous years..
I'm too scared to try out of state investing as I failed on my last attempt(made some rookie mistakes and learned a ton).
But then I hear other option like funding someone else's deal or partnering on a deal, which outside my comfort zone as well but always willing to learn. I'm hungry for knowledge and experience and looking to join forces. Thanks for reading ,Would love to hear any advice offered.
Most Popular Reply
Matt, do you know if you will qualify for conventional/FHA financing? The loan limits are high enough here to occasionally work for the 3&4 unit properties, and the down payments are very low (3.5-5% can be possible). I ask because the income qualification can be a little more work for people who are self employed, but it is totally doable. Depending on the loan product, you can use 75% of the projected rental income towards the qualification as well. If this is the case, I believe there are a couple projects in our area that may be feasible.
If instead your plan is to use savings, or savings + hard money/seller financing, please let me know. There are options here too but it's a different group of properties
Is it the actual purchase price that is scary, or the money out of pocket (or both)? I definitely agree prices are very high right now and I'm seeing more competition making offers than before. Personally, I'm still looking for deals here but am being extremely selective.
We actually have some things in common outside real estate; I have some experience with laser cutters, CNC routers, waterjet, as well as conventional milling and carpentry. I'm not on here much, happy I saw your post. Feel free to connect or PM if you'd like to talk more.