Newbie from California

9 Replies

Hey everyone,

Found out about this website from the Financial Independence sub on Reddit.  I'm currently 31, married with two kids and a third on the way.  I work full time in a corporate job, but constantly dream of financial independence.  

I currently own my primary residence as well as a rental property.  I'm scared of "leveraging" but I also want to aggressively build my real-estate portfolio so it can generate residual income.  I'm looking to be able to quit my full time job and have real estate supplement my income, but I'm scared to go all in, especially with a young family and things like health insurance.

I'm looking forward to expanding my knowledge and interacting with people here who've been successful in achieving financial independence through real estate!

- Charles

@Charles Ho


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 rehabbers (cash buyers). You can Google to locate them and go to

Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs

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.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

Good Luck


Hi Charles,

Welcome to BP. You are definitely in the right spot to get the right information you need to make the right decisions.

Here is my 2 cents on leveraging...It makes sense to get that money that is sitting as equity in your primary residence working for you & earning for you.  With your corporate income and a good credit score 680 or higher you can qualify for investor loans which are dirt cheap right now, 4.5%-5.5%.  With the abundant amount of houses around the country you can pick up for under $100K in B-C type neighborhoods, your $20K down payment could secure you a passive income of $4K a unit per year. Multiply that by 10 properties and now you are talking having a passive income of $3K per month. Once the debt service is paid down (thank you Mr. Tenant) now you have a $1M portfolio spinning off $8500-$9000 a month passively. 

If I lost you there, allow me to summarize. 

$200K investment can control $1M in real estate assets. 

20%-25% down on properties valued at $100K or less will allow you to acquire 10 properties. (let's just say you invest in 1 property a year for 10 years...slow and easy)

If you were to take all of the passive income from each property and apply it to 1 property you can have property #1 paid off in less than 2.5 years!  Crazy talk?  No way.  This is what I do and it works. 

My vote, is to take out a HELOC or better yet an ALL in 1 Mortgage, leverage your equity to acquire multiple rental units, have the tenant pay down the debt over time and set yourself up for $8K + a month in passive income. With 3 kids, you can purchase an investment property for each kid now. Set up the notes on 15 years. Have the units paid off prior to the start of college and wa la, you now have college tuition paid for for each kiddo.

@Charles Ho

Hi Charles,

Welcome to BP! This is a fun and informative place to learn real estate. 

The Ultimate Beginner's Guide is has a lot of good information to get you started. There is lots of information on this website. It's like drinking from a fire hose. 

You may be interested in the local forum in Sacramento. Go to  Forum > Forum Categories > Local Real Estate > California Real Estate Q&A > Sacramento if you want to hear what is happening in your area and see who is in your area.

If you are afraid, find out what is behind it. It will lead you to questions you can ask that, in turn, can help you with the answer.

You have a great start with your primary and rental property  :-). 

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