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New to Bigger Pockets – Seeking Advice and Connections

Michael Loperena
Posted Apr 18 2023, 13:26

Hello Bigger Pockets community!

My name is Michael, and I'm excited to join this fantastic forum to learn and connect with like-minded individuals. I'm currently based in San Jose, CA, and have a strong interest in multi-family properties as a means to achieve financial and locational freedom.

A little about me: I don't own any rental properties yet and am in the process of paying down $25k in debt from a failed business ($15k at 10% interest and $10k at 0% interest). I've been able to save about $1,500 per month while making minimum payments on those debts. My goal is to gain knowledge and form valuable relationships that can help us all find great deals.

I'm looking for advice from experienced investors, particularly those familiar with the California market. I'm feeling a bit discouraged by the high prices of multi-family properties in California and am considering the possibility of investing out of state. However, I find the idea of being able to visit my property without taking a flight quite appealing.

I'd appreciate any insights, tips, or guidance you all might have. Should I focus on out-of-state investing, or is there a way to make things work here in San Jose? I'm eager to learn from your experiences and wisdom.

Thanks in advance for your help, and I look forward to getting to know you all and contributing to the community!

Best regards,

Michael L

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Sloane Kraftsow
  • Lender
  • New York, NY
508
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749
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Sloane Kraftsow
  • Lender
  • New York, NY
Replied Apr 18 2023, 14:24

Hi Michael! Welcome to Bigger Pockets. My name is Sloane and I work at Easy Street Capital which is a private real estate lender. I would love to connect with you and discuss real estate investing to help get you started.

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Steven Foster Wilson
  • Rental Property Investor
  • Columbus, OH
3,437
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3,673
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Steven Foster Wilson
  • Rental Property Investor
  • Columbus, OH
Replied Apr 18 2023, 14:28

Hi Michael, welcome to BiggerPockets! I imagine that the experience to have a failed business must be hard on you but you can get back up and get started. It's best to clear that debt as soon possible and build up your capital. Normally, I'd choose the in-state option for starters provided that your local market can give you that 1-2% rule deal and if it's affordable. Knowing that this in CA, it might be a little difficult to do. If that isn't available locally, then that's the time that you should consider out of state investing.

There are a lot of markets to choose from if you're looking into better deals but before jumping in on this, make sure you have the right systems in place. Get a professional project manager, build a reliable team and get proper education of the market you're investing in.

The risk will be there but you'd be able to lessen it. The key is to make sure that you have those systems in place.

You can learn more from this link here: https://www.biggerpockets.com/blog/core-four-real-estate-team

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Replied Apr 24 2023, 13:40

Hi Michael,

In the Bay Area, housing prices have gone down significantly as a market correction. They will be rising again though, so now is a great time to buy! Outside of the Bay Area is also a place to start. Walnut Creek, Sacramento, and Humboldt county have much lower prices and are seeing a rise due to people moving there. Bend, OR, Nashville,TN, and Missouri are interesting markets right now as well! I'm sure you'd like to stay in the Bay Area as you're from here, so you can find some duplexes in Fremont and Milpitas for under $1 million and upgrade from there after the market appreciates more. 

I hope this helped you. Please reach out if you'd like to talk more about surrounding areas. I'm sure I can help you find a great place to live/invest!

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58
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Virginia Franzese
  • Real Estate Agent
24
Votes |
58
Posts
Virginia Franzese
  • Real Estate Agent
Replied Apr 25 2023, 04:04
Quote from @Andrew Cypert:

Hi Michael,

In the Bay Area, housing prices have gone down significantly as a market correction. They will be rising again though, so now is a great time to buy! Outside of the Bay Area is also a place to start. Walnut Creek, Sacramento, and Humboldt county have much lower prices and are seeing a rise due to people moving there. Bend, OR, Nashville,TN, and Missouri are interesting markets right now as well! I'm sure you'd like to stay in the Bay Area as you're from here, so you can find some duplexes in Fremont and Milpitas for under $1 million and upgrade from there after the market appreciates more. 

I hope this helped you. Please reach out if you'd like to talk more about surrounding areas. I'm sure I can help you find a great place to live/invest!


 Hi, Michael! Welcome to Bigger Pockets! If you decide to look at the KC market, I'd be happy to help! We have relatively solid opportunities for both cash flow and appreciation strategies. Enjoy the journey!

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Kevin Bartlett
  • Realtor
39
Votes |
177
Posts
Kevin Bartlett
  • Realtor
Replied Apr 25 2023, 08:09

Hi and welcome to BP community, Michael.

User Stats

48
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18
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Edgar Sanabia
  • Real Estate Agent
  • Saint Petersburg
18
Votes |
48
Posts
Edgar Sanabia
  • Real Estate Agent
  • Saint Petersburg
Replied Apr 25 2023, 08:14

welcome micheal ! you should look into attending local meet ups as that will be the best way to connect with other investors .

User Stats

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545
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Gordon Cuffe
  • Investor
  • Roseville, CA
545
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1,278
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Gordon Cuffe
  • Investor
  • Roseville, CA
Replied Apr 25 2023, 08:33

@Michael Loperena multifamily is considered 5 units or more. Ask yourself if you have at least 20% of 2 million dollars to buy multifamily around the san jose area. If your looking to buy a 1 to 4 unit property, you can buy that kind of property with a lower down payment if your moving into one of the units. You can find many other states that have way lower price points. You will just need to look deep into property managers, real estate agents and contractors because there are many incompetent or crooked people in those professions. I have had the unfortunate experience to deal with flat out crooks with out of state investing. 

User Stats

655
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806
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Noah Bacon
Pro Member
  • BiggerPockets Community Manager
  • Colorado Springs, CO
806
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655
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Noah Bacon
Pro Member
  • BiggerPockets Community Manager
  • Colorado Springs, CO
ModeratorReplied Apr 25 2023, 08:36
Quote from @Michael Loperena:

Hello Bigger Pockets community!

My name is Michael, and I'm excited to join this fantastic forum to learn and connect with like-minded individuals. I'm currently based in San Jose, CA, and have a strong interest in multi-family properties as a means to achieve financial and locational freedom.

A little about me: I don't own any rental properties yet and am in the process of paying down $25k in debt from a failed business ($15k at 10% interest and $10k at 0% interest). I've been able to save about $1,500 per month while making minimum payments on those debts. My goal is to gain knowledge and form valuable relationships that can help us all find great deals.

I'm looking for advice from experienced investors, particularly those familiar with the California market. I'm feeling a bit discouraged by the high prices of multi-family properties in California and am considering the possibility of investing out of state. However, I find the idea of being able to visit my property without taking a flight quite appealing.

I'd appreciate any insights, tips, or guidance you all might have. Should I focus on out-of-state investing, or is there a way to make things work here in San Jose? I'm eager to learn from your experiences and wisdom.

Thanks in advance for your help, and I look forward to getting to know you all and contributing to the community!

Best regards,

Michael L


 Hey Michael! Welcome to BiggerPockets and thanks for joining!

Here are some tips for networking and making the most of your account.

1) I'd fill out your profile fully before you do anything else! As that will at least help folks that you reach out to know that you are a real person, with a picture and professional bio. Particularly be sure to include your goals for real estate investing so that folks can help you.

2) Go to the Search bar, and look for some local members in your area! Reach out to a few of the folks, perhaps those with hundreds or thousands of posts in this forum, and connect. You can do that here.

3) Check out some of the local meetups that you can find in this forum! There are so many so be sure to filter by your location.

4) Review this comprehensive 64 page deck on the state of the 2023 housing market (in your resource page as a member of BiggerPockets!) for real estate investors put together by Dave Meyer and available for all BiggerPockets members.

5) Consider meeting with a few agents in your area even if you are just getting started! An investor friendly agent can do all sorts of helpful things, like setting you up with a search for properties or connecting you with folks who have recently done deals like the ones you want to do.

6) Consider analyzing a deal or two in your local market, just for practice, with a free use of our Rental Property Calculator (or other calculators).

Hope this helps! Please reach out with any questions you may have!

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Replied Apr 25 2023, 13:54
Quote from @Edgar Sanabia:

welcome micheal ! you should look into attending local meet ups as that will be the best way to connect with other investors .


 Where/how do you find these local meet ups?

User Stats

48
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18
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Edgar Sanabia
  • Real Estate Agent
  • Saint Petersburg
18
Votes |
48
Posts
Edgar Sanabia
  • Real Estate Agent
  • Saint Petersburg
Replied Apr 26 2023, 06:20
Quote from @Andrew Cypert:
Quote from @Edgar Sanabia:

welcome micheal ! you should look into attending local meet ups as that will be the best way to connect with other investors .


 Where/how do you find these local meet ups?

so if you are from tampa i can send you some invites. but if not go on facebook and join real estate groups and look for events. also go to the meet up section in BP and there should be several meet ups in your area . or go to REIA online and look when they are having meet ups. these are the methods i use.

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Juan Lara
Lender
  • Lender
  • Florida
6
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20
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Juan Lara
Lender
  • Lender
  • Florida
Replied Jun 5 2023, 11:17

Hey @Michael Loperena,

Welcome to the Bigger Pockets community! It's awesome to see your passion for real estate investing and your interest in multi-family properties.

If you ever need assistance with loan inquiries or have questions about financing your investments, feel free to reach out. I specialize in helping investors navigate the loan process and can provide guidance based on my expertise.

Wishing you success in your real estate endeavors, and I'm here to support you along the way!

Best regards,

@Michael Loperenaundefined

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Jeet Sangha
Pro Member
  • Realtor
  • Gilroy, CA
64
Votes |
241
Posts
Jeet Sangha
Pro Member
  • Realtor
  • Gilroy, CA
Replied Jun 8 2023, 09:54
Quote from @Michael Loperena:

Hello Bigger Pockets community!

My name is Michael, and I'm excited to join this fantastic forum to learn and connect with like-minded individuals. I'm currently based in San Jose, CA, and have a strong interest in multi-family properties as a means to achieve financial and locational freedom.

A little about me: I don't own any rental properties yet and am in the process of paying down $25k in debt from a failed business ($15k at 10% interest and $10k at 0% interest). I've been able to save about $1,500 per month while making minimum payments on those debts. My goal is to gain knowledge and form valuable relationships that can help us all find great deals.

I'm looking for advice from experienced investors, particularly those familiar with the California market. I'm feeling a bit discouraged by the high prices of multi-family properties in California and am considering the possibility of investing out of state. However, I find the idea of being able to visit my property without taking a flight quite appealing.

I'd appreciate any insights, tips, or guidance you all might have. Should I focus on out-of-state investing, or is there a way to make things work here in San Jose? I'm eager to learn from your experiences and wisdom.

Thanks in advance for your help, and I look forward to getting to know you all and contributing to the community!

Best regards,

Michael L


Hello Michael, it's great to have you here! Given your situation, I would strongly suggest considering 2-4 unit multifamily properties as a starting point. These properties allow you to take advantage of low down payment financing options. Additionally, certain lenders may take the rental income from these units into account when qualifying you for a loan.

If you haven't explored the south county area yet, I highly recommend looking into the Gilroy and Hollister markets. Both areas have a strong rental demand, and while property prices have seen a healthy appreciation, they still remain relatively affordable compared to San Jose.

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11
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Steven Gary
  • Rental Property Investor
  • San Jose, CA
6
Votes |
11
Posts
Steven Gary
  • Rental Property Investor
  • San Jose, CA
Replied Jun 23 2023, 14:02

Hi Michael.  Don't be afraid of investing out of state in areas where cash flow can be realized. There are many markets in the United States where this could be done with minimal cash.  The truth is....that.. The San Jose and greater Bay Area is a tough market to cash flow even when you have a lot of cash to spend!!  However, If you must buy in the San Jose area, remember that its all about appreciation here initially and not cash flow.  If and when you are able to purchase your first property and are able to hold onto it for a few years, you can eventually leverage the equity in it to help scale and grow your portfolio.  It's not something that happens overnight so you'll have to be disciplined to keep at it.   If you don't have much money to spend then there are other ways to build up a portfolio of properties where you don't need much capital but, you will need a lot of TIME, energy, focus and hard work to find, locate and procure properties in this niche.   

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JP Wang
  • New to Real Estate
  • Bay area, CA
4
Votes |
2
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JP Wang
  • New to Real Estate
  • Bay area, CA
Replied Aug 17 2023, 21:28
Quote from @Andrew Cypert:

Hi Michael,

In the Bay Area, housing prices have gone down significantly as a market correction. They will be rising again though, so now is a great time to buy! Outside of the Bay Area is also a place to start. Walnut Creek, Sacramento, and Humboldt county have much lower prices and are seeing a rise due to people moving there. Bend, OR, Nashville,TN, and Missouri are interesting markets right now as well! I'm sure you'd like to stay in the Bay Area as you're from here, so you can find some duplexes in Fremont and Milpitas for under $1 million and upgrade from there after the market appreciates more. 

I hope this helped you. Please reach out if you'd like to talk more about surrounding areas. I'm sure I can help you find a great place to live/invest!


 Is it real to have duplexes in Fremont and Milpitas for under 1M?

User Stats

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Replied Aug 17 2023, 21:47
Quote from @JP Wang:
Quote from @Andrew Cypert:

Hi Michael,

In the Bay Area, housing prices have gone down significantly as a market correction. They will be rising again though, so now is a great time to buy! Outside of the Bay Area is also a place to start. Walnut Creek, Sacramento, and Humboldt county have much lower prices and are seeing a rise due to people moving there. Bend, OR, Nashville,TN, and Missouri are interesting markets right now as well! I'm sure you'd like to stay in the Bay Area as you're from here, so you can find some duplexes in Fremont and Milpitas for under $1 million and upgrade from there after the market appreciates more. 

I hope this helped you. Please reach out if you'd like to talk more about surrounding areas. I'm sure I can help you find a great place to live/invest!


 Is it real to have duplexes in Fremont and Milpitas for under 1M?


 Hey JP, I was seeing some a couple months ago, but the market/inventory changes so frequently. Right now I’m seeing some in Hayward. Let’s connect and talk if you’re interested in investing!

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3
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Christopher Lamm
  • New to Real Estate
  • Fremont, CA
1
Votes |
3
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Christopher Lamm
  • New to Real Estate
  • Fremont, CA
Replied Aug 18 2023, 15:07
Quote from @JP Wang:
Quote from @Andrew Cypert:

Hi Michael,

In the Bay Area, housing prices have gone down significantly as a market correction. They will be rising again though, so now is a great time to buy! Outside of the Bay Area is also a place to start. Walnut Creek, Sacramento, and Humboldt county have much lower prices and are seeing a rise due to people moving there. Bend, OR, Nashville,TN, and Missouri are interesting markets right now as well! I'm sure you'd like to stay in the Bay Area as you're from here, so you can find some duplexes in Fremont and Milpitas for under $1 million and upgrade from there after the market appreciates more. 

I hope this helped you. Please reach out if you'd like to talk more about surrounding areas. I'm sure I can help you find a great place to live/invest!


 Is it real to have duplexes in Fremont and Milpitas for under 1M?


Not that I'm seeing. You have to go up to the San Leandro/San Lorenzo to start seeing things under 1M. At least if you are looking on the MLS.