Updated over 3 years ago on . Most recent reply
CA small Multi-family VS. Out-of-State small Multi-family?
Hi, I am trying to get into the real-estate and trying to buy my first property. But I am not sure what will be the best strategy to go with in this market. So I will be living in lower part of the Bay Area because of work, and my initial thought was to house hack with small multi-family property, but it seem like it's very tight market to make 0 or positive cash-flow. So I was thinking buying small multi-family units out-of-state for positive cashflow. Will it be better strategy to buy out-of-state rental property (small multi-family) first for positive cashflow or house-hack a small multi-family property in Bay Area?
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- Realtor
- Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility
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A very long time ago I made a “sacrifice” by buying a duplex in deep, deep east Oakland to house hack. It didn’t have a washer dryer on-site and parking in the area was worse than San Francisco. I put a Section 8 tenant in one side, and I lived in the other side. My friends and colleagues were talking all kinds of “nonsense” to me. Over the 5 years I lived there as the duplex in the hood kept appreciating in value I refinanced 3 times, took cash out and paid off all credit cards, my car notes and started buying (serious cash flowing) rentals in the Midwest.
Moved out of the hood….. still own the duplex (as well as many others) and put a Section 8 tenant in the unit I used to live in.
Your first step should be to get pre-approved with a lender. @Chris Masoncan help you out with that.