What should I do?

Question

Hi everyone!

New to the bigger pockets community by way of the podcast.

Right now I'm looking for a buy-and-hold investment property in the West, Central, or the Northeast Los Angeles area and was wondering if anybody had any advice?

My ideal would be a moderately distressed home 3+br 2+bath for <$500K. Is this possible, even with it being distressed and having a motivated seller?

Also, I have about $10K put aside as for retirement (so not included in cash for down payment + renovations needed for aforementioned LA property).

I was wondering the best way to invest this $10K? Right now, it's in a stock portfolio, and I'm lucky to see 3% returns. I'd like to use this money to find a wholesale investment, or possibly a turnkey buy-and-hold investment.

Anyway, I just wanted to introduce myself, and ask for advice re: finding an LA home, and learning what my best options are to invest $10K in REI.

Thanks!

Ayodeji Kuponiyi · Answer

@Spencer Wardwell welcome to BP! Best/first thing to do is get educated. Read read read! Read books on investing in real estate, listen to the podcasts, attend webinars and stay active on the forums while connecting with other investors in your area and pick a niche. Best of luck.

Spencer Wardwell · Answer

Hey everyone, thank you for the welcomes and advice!Looks like I'm upping my search to properties worth as much as $700K, which is obviously more than I was hoping for, but I think I'll be able to find two tenants relatively easily, considering I already have many friends out there, which should cover most of if not all of my mortgage.

@Bram Spiero, yes I'm moving there after the summer.

Jack Butala · Answer

Hello @Spencer Wardwell and welcome to BP. BP is full of great real estate information and great real estate investors. At BP, you can take online courses and watch online videos absolutely free! You have come to the right place.

Joe Moore · Answer

It can probably be done here in LA, but it will be a real long shot.

Larry Fried · Answer

@Spencer Wardwell Hi and welcome to BP and the world of REI!  For that 10K investment you may want to read a blog I wrote about an investment I made with a company that provides co-ownership in a portfolio of 10 rental properties for instant diversification.  Excellent double digit returns. The minimum investment is 10K

Have I Found the Holy Grail of Passive Real Estate Investing?

James Wise · Answer

Welcome aboard @Spencer Wardwell

Good luck to you & I'll see you around the site.

Fay Chen · Answer

Unfortunately, 500K will buy you a little matchstick box in the area you are looking. A little 2 bedroom SFR is going for 500K now. Maybe expand your search area or go to auctions?

Michael Lee · Answer

Hello and welcome ro BP!  Education is one of the main keys to investing in real estate.  It can help you minimize your risks and mistakes.open your business and do what you need to do there.  Do not try to do it all yourself.  Find/Get your local and experienced Team put together.  The typical me in Team members are Attornies, real estate Agents, CPA's (or accountants), Inspectors, General Contractors, and Handyman.  Always do the numbers and try to look at the property  or at least have a clause in the sales contract that will allow you some time to inspect the property and possily back out of the deal without the penalty that exceeds the earnest money you gave.  Right after you close get an insurance policy that protects you in case of a loss.  Also, as soon afterward closing a property you should change out the exterior door locks.  If the locks are still good just install them at another address.

I am 59 years old and I found BP about 8 months ago and I am still trying to decide what to do. I went to college, not that it is mandatory, and I got a business degree that emphasized real estate.  Since I was in Texas and planned on staying there I found out that I was qualified to take a broker license test and I got a license.  I closed a few deals for other people.  I kept that license for about 30 years.  Regardless of what I had I got into the construction business where I felt more comfortable.  I have been in the construction business since I was 17.  My father has been in real estate sales for about 40 years and he has taught me a little bit.  If you think I could help you please contact me through BP at any time.  Good luck!

Bram Spiero · Answer

Welcome to BP!

Why in LA? Are you looking to move there?