Investor · Livermore, CA · Member since 2014 · 5 posts · 5 votes
Hello everyone,
My name is Chris and I am a new investor currently in Livermore, California and work in the medical field. I have owned a few buy and hold single family residents in the bay area but I am interested in moving my investments out of the area to get better cash flow. I have been looking at the California Central Valley (Modesto, Stockton, and Sacramento) and also out-of-state (Dallas, Fort Worth, Austin, and Phoenix). My short term goals are to buy several SFR for buy and hold investments for passive income and building towards retirement. I have been listening to the Bigger Pockets Podcasts and reading the blogs for about a month and have found it to be a great resource. I hope to share my experiences and learn as much as I can from others.
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
12y
Yes and yes. I bought a mostly vacant REO off the MLS (Homepath) with a partner a few months ago. Listing agent said only accepting cash offers, but convinced him to take conventional by offering directly through him (so he could make double commission). Closed conventional in 18 days.
I hit my target numbers on the first page of this posting below, w/ over $5k/mo rents, and $430K all-in cost after rehab. That's over $60K/yr gross income.. And probably worth about $550K. I got a great deal because I paid a near-cash price w/ a conventional loan, and the units were vacant and I knew how much rents had gone up, better than most people IMHO. I also checked out and talked to a lot of people on that street, and the property and street are better than the area it lies within, IMHO.
I also bought a property with a partner that was in probate, off-market from a wholesaler last month. Paid $20K for contract, and was still a great deal. $120/sqft for Victorian Duplex in West Oakland. Will take time, possibly years to turn around (tenants). But will cash flow nicely (1.25-1.5%+) on the back side, and have a hundred thousand apiece or so in equity. Unless West Oakland keeps going up in price. Then we'll make a lot more ;) I got this deal because I... NETWORK!!!!
Wholesaler · Grand Prairie, TX · Member since 2014 · 202 posts · 66 votes
12y
Welcome to BP!
Dallas is a super hot market!
You took a GIANT step by joining. Other than the podcasts and blogs there's the ultimate beginners book that I have found very helpful.
http://www.biggerpockets.com/ubg
Good luck!
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
12y
Welcome to BP community @Chris Siegler It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:
If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select that person below. He or she will be notified of being tagged so that the conversation will continue.
You're on the right track! We see a lot of our local clients doing the same thing because of better cap rates and getting more for your money. California is a great place to live in but not for buy n hold investors who are trying to maximize cash flow.
My biggest advice is build a solid team in whichever market you end up going with!
Investor · Stockton, CA · Member since 2014 · 167 posts · 49 votes
12y
Welcome to BP @Chris Siegler I am looking at SFRs in central valley myself. If any deal comes my way that i can't make work, i will make sure to send you the info and wouldn't looking at anything that you reject :)
I have a bunch of units in the East Bay, and prefer to stay here, but there are lots of folks making money all over ;) Make sure you do all your due diligence on your team, and on the area, before you pull the trigger. I would like to know even MORE than usual - not less - if I'm investing in an area I don't know as well and/or haven't lived in.
You should come out and meet some local investors. Check out my signature website, or look on meetup.com for something out closer to Livermore. I know there is at least one meetup group in Walnut Creek...
You hit an awesome website! Now expand that to live networking! Welcome Chris!
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
Welcome! Definitely share anything you want, I know I love hearing about other people's experiences but most everyone else on here does too. Especially from people who are really doing it.
I live down in LA and buy out-of-state SFRs as well.
Investor · Fresno, CA · Member since 2014 · 34 posts · 9 votes
12y
@Chris Siegler Hi Chris - Welcome to BP! My company finds properties for all sorts of investors here in Fresno and fills them quality tenants. I can tell you the Central Valley is terrific for investment properties if done correctly. Partnering with a similar company for Modesto, Stockton, and Sacramento might serve you well. For my personal investments, I stay local. But Fresno's low housing cost and great rental market enables me to do that.
Investor · Livermore, CA · Member since 2014 · 5 posts · 5 votes
12y
@hattie dizmond - thank you. Do you have any recommendations of lower priced areas that cash flow above the 1% rule that are not in a war zone? Or places to avoid buying?
@mohit madaan - I would be interested in deals in the area. Are you using MLS, wholesaler, or direct mail?
@J Martin - with the recent rise in prices are you still funding properties that cash above the 1% rule with low (20-25%) equity? If so what areas are you buying in and how are you getting your deals?
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
12y
Yes...there are some great buy & hold areas in the "mid cities"...That's basically Hurst-Euless-Bedford, North Richland Hills, Keller, Watagua. Also...Carrollton-Farmers Branch. Allen & Garland, and Southwest Arlington.
That keeps you out of anything remotely considered a war zone and in some solid school districts, while still allowing you to find reasonably priced properties.
Again, rent remains strong in those areas without the appreciation being seen in areas like Richardson & Grapevine/Colleyville.
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
12y
Yes and yes. I bought a mostly vacant REO off the MLS (Homepath) with a partner a few months ago. Listing agent said only accepting cash offers, but convinced him to take conventional by offering directly through him (so he could make double commission). Closed conventional in 18 days.
I hit my target numbers on the first page of this posting below, w/ over $5k/mo rents, and $430K all-in cost after rehab. That's over $60K/yr gross income.. And probably worth about $550K. I got a great deal because I paid a near-cash price w/ a conventional loan, and the units were vacant and I knew how much rents had gone up, better than most people IMHO. I also checked out and talked to a lot of people on that street, and the property and street are better than the area it lies within, IMHO.
I also bought a property with a partner that was in probate, off-market from a wholesaler last month. Paid $20K for contract, and was still a great deal. $120/sqft for Victorian Duplex in West Oakland. Will take time, possibly years to turn around (tenants). But will cash flow nicely (1.25-1.5%+) on the back side, and have a hundred thousand apiece or so in equity. Unless West Oakland keeps going up in price. Then we'll make a lot more ;) I got this deal because I... NETWORK!!!!
Real Estate Agent · Fort Worth, TX · Member since 2014 · 187 posts · 113 votes
12y
I was looking at crime data for the past few months and I was shocked to see that white settlement had a lower crime rate than Hurst, Euless, or Bedford (mid cities areas that I consider to be better than white settlement). They also have a naval air station so there would be some quality tenents nearby. White settkement is a small older suburb just west of fort worth below lake worth.
On the mls i saw listings below 80k that looked like they could be rented at 700-900. Find a wholesaler working down there and you could beat that 80k...
Crime in HEB has climbed over the last 10-years or so, mostly south of Pipeline Rd. Keller & NRH are my personal Mid Cities favorites right now for rentals. I have relatives in White Settlement. It's a sleepy little bedroom community, so the low crime is unremarkable. The problem with it is the lack of employment opportunities, given its location. It's a major commute to anything other than Ft Worth, which is going to keep the rent stagnant and slightly depressed, compared to more central locations or those areas in the telecom corridor.
Real Estate Agent · Fort Worth, TX · Member since 2014 · 187 posts · 113 votes
12y
@Hattie Dizmond
I like Nrh and Keller too. Nothing wrong with heb and I think anyone getting the right price in a good neighborhood in those areas is going to do well. I wouldn't rule out older low crime bedroom communities with decent commutes that are lower cost and still meet cash flow criteria. I don't see white settlement as having an employment issue. Its near some large companies and some industrial and manufacturing. Downtown fw is about 15min w/out traffic. Could be a solid option for the right landlord.
I agree. It wasn't a slam on White Settlement at all. If you get a good cash flowing deal there, it's likely to continue cash flowing. I just personally prefer areas with a little more growth potential. Good luck!
Tracy, CA · Member since 2012 · 48 posts · 22 votes
12y
@Chris
Siegler welcome to BP. I am across the hill in Tracy and invest locally (MH, tracy, Manteca, Stockton). Have plans to expand along HW99 but I not ready to pull the trigger yet.
South Lake Tahoe, CA · Member since 2014 · 111 posts · 37 votes
11y
@David Mamsa Your are right over the hill from me. Which neighborhoods would you say would be better buy and hold rentals in Tracy and which would you recommend to stay away from? Or are the prices too high for the rent?
@David Mamsa Your are right over the hill from me. Which neighborhoods would you say would be better buy and hold rentals in Tracy and which would you recommend to stay away from? Or are the prices too high for the rent?
Hello Anna,
Prices have climbed significantly in the last couple of years and I do not see how they would cash flow (25% down). Rents have climbed not in proportion. In Tracy, for buy and hold I would say Redbridge, Hidden lakes. Ellisagary Ranch would be a good area for buy and hold.