2-8 Unit Buy & Hold

2-8 Unit Buy & Hold

Investor · San Diego, CA · Member since 2014 · 65 posts · 39 votes

Ladies and Gentlemen,

I've read several books now on Real Estate Investing, including the "BiggerPockets Ultimate Beginner's Guide" (which, is a great read by the way).  Now that I've got a little knowledge under my belt, I'm almost ready to take that first step and start looking at properties.  I'm currently in the military and forward-deployed on a ship, so I won't be back for a couple more months... and in the meantime I'm trying to get as much done on the internet as I possibly can.  My goal is to buy a 2-8 unit apartment complex before March 2016, hold onto to it, have a property manager manage the properties (since I don't have the time due to my busy work schedule), and collect the rent. 

Here is why I am posting today, and this is my dilemma.  I live in Camp Pendleton, California... Right outside of Oceanside (San Diego area).  Obviously, being in the military I don't make that much money- which brings me to my first problem... Southern California is EXTREMELY expensive, as many of you I'm sure are well aware.  Now I've been reading a few forums and posts on Bigger Pockets, saying that you don't need to put money down in order to get into real estate- but isn't this extremely risky? 

Also, since I won't be living in California for more than a few more years- is it wise for me to buy here?  Do you guys think it would be more in my interest to look at booming markets that are more affordable, like Raleigh NC?  I was also thinking about Florida because I realistically see myself going to school there if I decide to get out. 

Anyways, I know this is all a lot of a questions and I'm sorry if it seems like I'm bouncing all over the place.  Bottom line is I really want to get into the real estate business, and eventually accumulate several properties that I buy, hold, and rent out for the long-term... but am having trouble on deciding where to start buying since I don't have more than 10,000$ and I'm constantly gone due to the nature of my job. 

Thank you all

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Knoxville, TN · Member since 2015 · 32 posts · 5 votes
11y

My opion is wait till you know where you are going after the military. It sounds to me like you have a lot on your plate now. My first deal I used a FHA owner occupied on a duplex. FHA allows low down payments. Most commercial lenders require 20% down. 10k down will only get you a property for 50k. I also live in knoxville which is a relatively inexpensive market and 50k on a multifamily does not give you many options. Real Estate can be very exciting but don't jump on the first shinny thing that comes you way. Good luck on your endeavors and God bless.

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  • Chris MasonPro Member
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    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    10y
    Originally posted by @Jimmy Watson:
    Originally posted by @Chris Mason:
    Originally posted by @Jimmy Watson:
    Originally posted by @Chris Mason:

    Welcome back @Jimmy Watson

     Hahaha, I believe you're referring to what we like to call 'The Purple Church'.  Thank you very much for the advice... and I've got a little real estate investor meet up going on down in Vista next month that I'm going to attend, so I'll start asking around for opportunities.  Unless that person that you're talking about finding on BP is you?  Because I could certainly help you out on the weekends for little to no cost to you... the experience would be payment enough.

     Not looking to hire, and when I do it will be a Chinese speaker fresh out of college, but thanks for the offer. :)

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