Hello! Newbie from SF Bay Area and Stockton CA

Hello! Newbie from SF Bay Area and Stockton CA

East Bay, CA, CA · Member since 2014 · 9 posts · 4 votes

Hi everyone! I stumbled across BiggerPockets while Googling for tips on how to invest for the first time in rental property. This looks like a great community and I'm excited to learn and share with all of you. I have no experience in property investing, but have a young family and am looking to start something now for some long term financial security. We just bought our primary home in Livermore, CA last year, and saved up enough cash since then for a modest down payment on something. I'm originally from Stockton, CA where I am thinking of investing because the prices are much more palatable than the Bay Area. However, I am unsure about the risks due to Stockton being a town that has hit tough economic times. Any advice about investing in such a market is appreciated! For now, I'm thinking my strategy is to acquire property for positive cash flow rental income. Unfortunately, all I can offer to you guys in return now before I learn the ropes is perhaps some help/experience in computers, information technology, or technical sales as that is related to my background and day job! Thanks, and look forward to connecting with all of you soon!

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  • Investor · Stockton, CA · Member since 2013 · 92 posts · 12 votes
    12y

    Welcome to BP Raymond C!

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Raymond C.

    Welcome. Time to build the legacy.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having 60 past ones to catch up on.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Good luck

    Paul

  • Investor · Antelope, CA · Member since 2014 · 90 posts · 29 votes
    12y

    @Raymond C.

    Welcome to Bigger Pockets!!The best online site for Real Estate Investment learning and networking! Make sure you listen to the podcast! They will teach you a lot!

    Best of Luck to you!!

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    12y

    Hey @Raymond C. welcome to BP!

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y

    Welcome! I'm south of you, down in LA. You will have a hard time finding cash flow in CA (and the areas in CA you can find cash flow, I'd be hesitant about buying). I've always bought out-of-state for cash flow. If you buy in CA you will be relying heavily on the appreciation play which doesn't always work out so hot.

  • East Bay, CA, CA · Member since 2014 · 9 posts · 4 votes
    12y

    Thanks to all that responded and made me feel welcome. I look forward to getting to learning this business and connecting with all of you.

    @Ali Boone - thanks for the advice. I was thinking Stockton because prices are still affordable to me, and I'm just starting out. If I buy something out of state I would have no clue about the areas and it would be difficult to manage for a newbie like me. Back when you started out, when/how did you branch out of your comfort zone from nearer vicinities to somewhere farther? These are probably answers for down the road for me, but I am curious while I have you here :-)

    Thanks again!

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y

    Haha...I'm here, not going anywhere. Ask away.

    I've never invested locally. It's never made sense financially. Even funnier, my first investment ever wasn't even in the country, it was in Nicaragua. So I started way far out and then moved back into the States.

    There is a huge misconception about needing to invest locally just so you can be near the property. My properties are in Atlanta and there's never been a problem I couldn't fix over the phone. I've never needed to be there and I actually prefer not being there because I don't want the stress or work involved. The key is using a good property manager, that's the only way to do long-distance investing in my opinion.

    When you say the prices in Stockton are affordable, what are those ranges? And what would those same properties rent for?

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