Starting in Southern California

[Braden Getting]

Hey everyone! My names Braden, I'm a former Marine and I'm looking to get things started within the next year here in sunny southern Cali. I currently own a 3 bedroom, 2 bath, 3 stall garage condo in Anaheim.

Here's my plan to get started:

As stated above, I am currently living in my 3 bed, 2 bath condo and I plan to convert it into my first rental. I purchased the condo with a VA loan so I can not keep the condo as a rental under the current arrangements. I've ran some of the numbers on one of the bigger pocket's calculators to see what I need to hit to be cash positive with my future rental. To achieve this I plan on paying my mortgage down by 50k, once that is complete I will save an additional 50k to hit my 20% requirement that will allow me to refi into a traditional loan. With the 100k taken off I will be able to rent my condo at a much more competitive rate while still remaining cash positive. Once I find a renter for my condo I plan to use my VA loan for another property.

I have some serious reservations about owning a rental in California. I have heard multiple horror stories because of the laws and I know I could use my money more effectively buying out of state properties. The only reason I have for pursuing my current plan is because I want to make sure this is the life path I want to take and I feel more confident being within arms reach of my property.

I don't have experience with owning property and I don't have family that has experience so I am trying to be very conservative in my decision making. Please shoot holes in my plan! I thrive off that kind of input and it will only help me grow.

Thanks all!