Help beginning to invest in Southern California

General Real Estate Investing
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Help beginning to invest in Southern California

Robert O.
San Diego, CA · Member since 2021 · 6 posts · 0 votes

Requesting help/guidance when beginning to invest in southern California real estate market?

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Twana RasoulBusiness Member
Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
5y

@Robert O. There are many ways to start here in Southern CA / San Diego. I regularly have first time buyers that start with less than $30,000 down payment and purchase a duplex, SFR or condo to house hack/make their primary.

If you are looking to purchase as an investment and not initially occupy the property then a 2-4 unit is where I'd start if you can. You can purchase something that needs some work and add value if you are comfortable with that. If you want to add more value then adding units or ADU, especially when there is already an existing garage that you can convert or build on top of.

Time is what will help you the most so buying sooner will help vs waiting years (whether it’s a multi unit or single family). The longer you hold real estate in San Diego the wealthier you become. The best time to buy real estate is yesterday....

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  • Robert O.
    OP
    San Diego, CA · Member since 2021 · 6 posts · 0 votes
    5y

    @Robert O.

    Let’s say I have 320k to invest, being San Diego real estate is expensive, am I forced to start in areas like Palm Springs or are there ways to use the capitol to borrow for rest of property in San Diego to flip quickly and pay back loan? I am a newbie.

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  • Jan H.
    Investor · Saint Johns, FL · Member since 2015 · 141 posts · 100 votes
    5y

    Robert, welcome! What are your goals and strategy in mind? Are you looking to flip? 

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  • Robert O.
    OP
    San Diego, CA · Member since 2021 · 6 posts · 0 votes
    5y

    @Jan H. Yes I am looking to flip but want to educate myself as much as possible before prices come down.

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  • Robert O.
    OP
    San Diego, CA · Member since 2021 · 6 posts · 0 votes
    5y

    @Jan H. Also I read stories of people starting and having 2-4 units by years close. Is that possible? Is 320k enough to start?

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  • Jan H.
    Investor · Saint Johns, FL · Member since 2015 · 141 posts · 100 votes
    5y

    If I were you, I would start the education piece asap. Study and know your market, analyze deals, network with people. I am sorry, I can't give you advice what is possible for you. I guess the level of success will depend on you. If you want to flip, be careful. If I had $320k cash, I would want to buy something for $200k-$220, rehab $60-$100k and hopefully sell for $400k+. Whether you'll find a deal like that in CA is another thing, many out there are looking for those. Personally, I sold everything in CA an invest out of state now until prices crash-if that ever happens. Flipping is not my thing at the moment.

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  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    @Robert O. There are many ways to start here in Southern CA / San Diego. I regularly have first time buyers that start with less than $30,000 down payment and purchase a duplex, SFR or condo to house hack/make their primary.

    If you are looking to purchase as an investment and not initially occupy the property then a 2-4 unit is where I'd start if you can. You can purchase something that needs some work and add value if you are comfortable with that. If you want to add more value then adding units or ADU, especially when there is already an existing garage that you can convert or build on top of.

    Time is what will help you the most so buying sooner will help vs waiting years (whether it’s a multi unit or single family). The longer you hold real estate in San Diego the wealthier you become. The best time to buy real estate is yesterday....

    Compass5122 Reviews
    WebsiteView Page
    2Reply
  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    5y

    Happy to network and assist .0

    [email protected]
    1Reply
  • Robert O.
    OP
    San Diego, CA · Member since 2021 · 6 posts · 0 votes
    5y

    @Twana Rasoul this sounds like the route I would like to take. I need to understand how 30k down is all I need to acquire property and add value or units to resell. Is there a minimum amount of time to own property to not pay taxes in any instance? Is there any literature you recommend me reading to help to educate myself? Thank you very much for responding and your time, I really appreciate it!

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  • Robert O.
    OP
    San Diego, CA · Member since 2021 · 6 posts · 0 votes
    5y

    @Jan H. I guess to put it simply I would like to acquire property, add value or units and resell. I would like to do this quickly and begin to acquire equity and additional property in the long run. Do you have any reading recommendations to knowledge myself on this topic? Thank you for responding and your time, I really appreciate it!

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  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    @Robert O. You can use low down options to owner occupy such as 3.5% down payment using fha loan...you can buy up to a $1M duplex with just $35,000 down technically. Or you can do 5% down using a conventional loan to purchase a single family home or single family home with an ADU. Must be primary 2 out of last 5 years for tax savings

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  • Jan H.
    Investor · Saint Johns, FL · Member since 2015 · 141 posts · 100 votes
    5y

    This would be a great place to start: https://store.biggerpockets.co...

    1Reply
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