New investor in San Diego starting journey

New investor in San Diego starting journey

La Mesa, CA · Member since 2016 · 1 post · 1 vote

My name is Benjamin, though I usually go by Ben. I am a 27 year old single software engineer who just recently got more interested/involved in saving and investing. Though I want to build my stock portfolio as well, I would like to get into real estate investing soon as well.

I'm still doing reading and research, but want to at least get active in the forum to avoid analysis paralysis. I'm mostly finished reading the Ultimate Beginners Guide, and will probably spend some more time educating myself before deciding what to do exactly. I live in a fairly high cost of living area (San Diego), and have a primary residence, a 3 bedroom condo, which I rent out 2 of its rooms, and that I just reached 20% equity in. I'd like to get investment properties in the area, and I'm primary interested in buy and hold for single family and multi family properties. Due to the prices nearby, I am considering using a turnkey company (Memphis Invest) that some friends have used and recommend until I can get into the business in San Diego. I was hoping to get a HELOC or HEIL to help with my first investment property, but after looking into that more I think I'd prefer having quite a bit more equity in my home before tapping into it.

Any advice or help is greatly appreciated, and I hope to be able to reciprocate any help I receive as I grow in real estate knowledge and invest more time into my business.

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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
10y

First of all, good job on wanting to start early. With the power of leverage, the earlier the start the better. At your age, I think you can tap into that HELOC with minimal risk. Understand you will be highly leveraged and goal #1 should be to pay off the HELOC. Make sure that you have plenty of reserves for whatever you may need in life since you are tapping into the HELOC.

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  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    First of all, good job on wanting to start early. With the power of leverage, the earlier the start the better. At your age, I think you can tap into that HELOC with minimal risk. Understand you will be highly leveraged and goal #1 should be to pay off the HELOC. Make sure that you have plenty of reserves for whatever you may need in life since you are tapping into the HELOC.

  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    Didn't mean to hit send. Consult with the guys at MI with your strategy as they may have property recommendations for your strategy. Personally if you are going to be highly leveraged, I would recommend a higher priced property in an "A" class area. The paper returns may not look as good, but the stability of tenant that in theory will take better care of the property is often times synonymous with these properties. 

  • Financial Services / Real Estate Investor · Hanahan, SC · Member since 2014 · 34 posts · 44 votes
    10y

    Or you can just contact Alex Craig at Memphis Turnkey Properties (above) and be done with it. I have bought 2 SFR from Alex the same way. I'm using a 2.75% HELOC for down payments and using part of cash flow to pay that loan back. Working great so far on to A class properties.

  • Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes
    10y

    @AlexCraig is very active in the Memphis market and online with BP. I have not dealt with his TK or MI, but both have positive reviews on here. Interview the company you want to work with. I just completed my first purchase with a TK in Memphis and it was a great experience. Lots of the Memphis folk on here are very supportive. 

    Someone who lives in CA and has bought many TK properties is @DavidHutson. He is a wealth of knowledge. Contact him. If your curious about details since I just completed my first and about to do a second, let me know.

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