Hello BP community!
I am a new real estate investor considering my options on how to start and get into the industry. I am in the Southern California inland empire area. I am trying to decide between seriously pursuing my first property as a long term rental or an AirBNB property. I am looking for some advice as to how people think it would be a good way to start my RE investing career. My area is expensive and a little out of budget for the money that I could put into the property so I may have to look into investing in area that is farther away from me or potentially a different state. In my area, if I bought, I would be trying to break even with long term rental and hoping for appreciation (which I know will happen) or with AirBNB I would be able to profit and generate a little bit of cash flow for the area I could invest that has a lot of people flocking for tourism or to get away from the city. Outside of that is investing out of state... which I know there are a lot more benefits and money making opportunities than where I live.
Any thoughts on a way to start would be appreciated.
I definitely recommend combing over these forums to read up on STRs. I personally think they are super easy to invest in remotely with a good cleaner / repair person, and a little bit of technology but I did do a couple of long term rentals locally. Just not sure that I would have to if doing it all over again. I also recommend David Greene's book Long Distance Investing. Congrats on making a move!
How much time do you have, and do you have 3M talent. I've got about 2 dozen STRs in my town, and it's my unofficial full time job.
Mechanic, Magician, Mindreader.
@Kevin Craig I can't imagine how you could make a decent return in Southern California given prices. Out of state sounds like your best option. If you decide to look in the Atlanta market give me a shout and I can give you my two cents about different areas. I think short or long term is good but I make a lot more on short term.
Thanks so much for your recommendation. I actually just purchased that book and got it a day ago so looking to dive into it here this weekend! I am leaning toward a short term but I am hesitant on how to get those critical and solid resources on my team as this is my first time. I will read up more and do my research as to how to build those critical partnerships. Thanks for your help.
I do have a full time job that gives some flexibility throughout the day to handle personal items but it is something I need to be on and present. I would love to turn it into my full time. What do you mean by 3M?
Thanks so much for your help Robert! Really appreciate it. I still have a lot of research to do but I will let you know if I look that area!
@Kevin Craig my wife and I have a property management company in Big Bear and are getting great cashflow and appreciation on are properties. I have multiple properties that I have cash-flowed 5 figure profits in one month.
@Robert Gilstrap I have a property in Southern California that I bought for 196K 2 and a half years ago all in including furniture (240K) and my best payout is 1.9k on it in one day. We cashflow like crazy on it, even at current market value of about 400K it’s still over a 15 cap rate.
That is great. Big bear is one market I am looking at for a STR for something that would be near me. Home values in the area are not bad and looks like it could cash flow a good amount on a STR. If you have any advice regarding big bear area that would be great!