The first rental property in Bay Area with cash flow?

Question

I am very new in real estate investing. Because i live in Bay Area, i am thinking of having a rental property nearby.

However, the price of properties is high, and would not generate cash flow, as my newbie thought.

If anyone has experience in this area, please kindly share.

Also, Is it possible to have a cash flow one here?

Or should invest elsewhere.

I never do any real estate investment and, honestly, am afraid of uncertainty for long-distance investment.

Brian Garlington · Answer

Suntorn, take the basic step of getting pre-approved with a lender....then you will know where you stand on things. As for "cashflow".....you will be hard pressed to find it here in the Bay Area.....You won't hear any of the Podcast guests here on BP use cashflow and San Francisco Bay Area in the same sentence or Podcast. However.....in a lot of parts of the midwest and the SouthEast you can find cashflow galore.

Tim S. · Answer

I'm a successful out of state investor.  Not only is it very hard to cash flow in CA, the tenant laws are heavily in favor of the renters, and anti-landlord.  I'd never invest in CA real estate for that reason alone.  Eviction moratoriums, tenant placement fees, forget it.  CA is hostile to small business owners, a rental property is a small business.

There are many threads on the subject, this one has a wide array of opinions. I give my opinion in there somewhere, so won't repeat it here.

https://www.biggerpockets.com/...

Patrick Mallen · Answer

Hi Suntron,

There are deals here in the Bay Area. You just need to look for them. You would be surprised at the number of cash flowing properties you may come by. What specific areas are you looking to invest in?

Julio Garcia · Answer

Hey Suntorn! welcome. I also, live in CA. it tends to have a higher price point than other parts of the country. You might want to think about investing in Stockton/Modesto/Fresno/Sacramento as they are not as expensive.

A major thing I've seen with other CA investors is they are out of state investing and doing well. you have commit to the idea if you're going to do that. Don't be scared, with every investment comes some risk- not just out of state investing.

The first rental property in Bay Area with cash flow?

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