Newbie from Austin, TX & recent transplant from SF/Bay area,CA

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Newbie from Austin, TX & recent transplant from SF/Bay area,CA

Chirag Harivadan Parikh
Investor · San Jose, CA · Member since 2016 · 6 posts · 3 votes

Hello BP members: I am a recent transplant to Austin, Texas area and lived 18 yrs in SF Bay area. I am a newbie to real estate and an accidental landlord. My primary residence that I got in 2015 is currently rented out in Gilroy, CA and is negative cash flow while I start my new life here in Austin,TX. I recently closed on a condo near downtown Austin  for lifestyle reasons versus a single family home. I became a Pro member to access all the webinars and learn bunch of things in this valuable BP place.  I have close to 50 books on real estate that I have built a library on and this year I am focusing on learning as much as I can. I am a licensed CPA and hold a masters in Business and love real estate especially B R R R and rental income properties overall. I don't do taxes for a living. 

Having got these two places, I am going to need to save money to invest and looking for lower price point areas with positive cash flow.  I took RE seminar classes with LifeStyle, Than Merrill and Rich Dad-Legacy education. Mind you they are all the 2 or 3 day seminars training and have learned quite a bit. I am a $500 member of LifeStyle and also a member of Rich dad's website and books.  I have not bought their expensive programs yet. I listen to Podcasts now for Jason Hartman, Del Wamsley.  Overall, I am not anti-GURU but cautious. I am hoping to connect with wholesalers, lenders and just would like to learn a lot to get to the Financial freedom. Definitely interested in cash flow properties. 

Thank you and gratitude to BP.

Chirag

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  • Jason Hartman
    Rental Property Investor · Scottsdale, AZ · Member since 2012 · 314 posts · 146 votes
    10y

    Thanks for listening to my podcast, @Chirag Harivadan Parikh. I hope it's helpful and inspiring! 

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  • Chirag Harivadan Parikh
    OP
    Investor · San Jose, CA · Member since 2016 · 6 posts · 3 votes
    10y

    Thank you @Jason Hartman  I love the sound philosophy that your programs have.  Would you please advise on the programs that cater to newbies in investing cash flow properties. 

    1Reply
  • Jason Hartman
    Rental Property Investor · Scottsdale, AZ · Member since 2012 · 314 posts · 146 votes
    10y

    My pleasure @Chirag Harivadan Parikh. I'd be happy to discuss by phone. 

    0Reply
  • Matt F.
    Austin, TX · Member since 2016 · 3 posts · 1 vote
    10y

    Welcome Chirag!

    I am also a newbie in the Austin area and a lifestyles member.

    I hope to see you at the next case study!

    Best Regards!

    Matt Frazier

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  • Chirag Harivadan Parikh
    OP
    Investor · San Jose, CA · Member since 2016 · 6 posts · 3 votes
    10y

    Thanks @Matt F. Great to hear from you. I might be out of country next month but I certainly would like to share thoughts. I will PM you.  Currently, only the $500 level LU member.

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  • Chirag Harivadan Parikh
    OP
    Investor · San Jose, CA · Member since 2016 · 6 posts · 3 votes
    10y

    Thanks @Jason Hartman  I will certainly call up and speak to your team.

    1Reply
  • Marco Santarelli
    Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
    10y

    Welcome to BiggerPockets @Chirag Harivadan Parikh.

    I would say that was a smart move moving from coastal California to Texas. The cost of living is lower and the taxes are far more favorable. I hope you're enjoying it there!

    Building your portfolio of cash flowing properties is the smart and right thing to do. There are several ways to go about that. Are you intending to be an active or passive investor? The BRRR strategy involves some time, work and other resources on your part. I've done my fair share of fix and flip/hold, etc. I'd be happy to share my personal experience on the rehab and hold strategy.

    There is a ton of information out there, good and bad.  It's good that you're educating yourself through books, membership sites, podcasts (hopefully including ours).  However, you need to be cautious of some of the "gurus" that sell info-products and don't know what they're really talking about.

    See you around the forums.

    Continued success!

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  • Chirag Harivadan Parikh
    OP
    Investor · San Jose, CA · Member since 2016 · 6 posts · 3 votes
    10y

    Thank you @Marco Santarelli !  I appreciate your response and introduction. The decision to Austin, TX was never an easy one but instead of paying the expensive mortgage and working insane hours to pay the bills and commuting, I decided I take a chance and so decided to rent the primary residence and ventured out.  

    I am definitely interested in passive ones for now but open to how things pan out. I know I don't have the handyman skillsets but I am seriously open to everything. B R R R sounds a viable strategy but then I have never done it.  I would be very happy to tap into knowledge of yours which is win/win for both of us.

    1Reply
  • Joseph Baldini
    Austin, TX · Member since 2016 · 30 posts · 14 votes
    10y

    Hey Chirag,

    You're clearly a smart, educated and motivated individual. Definitely the foundation for success. The podcasts, books and seminars are all great. But no amount of reading will replace the experience of actually making transactions. Getting out there and experiencing what works, first hand. Education is important, but nothing is more important than experience and experience comes from making mistakes. Don't be afraid to make them.

    As far as your negative cash flow property goes, ask yourself, "why am I holding on to a liability?" Especially one that is so far away that you cant keep first hand tabs on. Consider the possibility of using the equity to make plays in the market you're currently getting involved in. 

    If you're interested in cash flow properties in Austin the outer suburbs are really going to be your sweet spot. The price points are low and working class young people are moving there every day. Conversely, Central Austin's price point can make it really difficult for you to find a cash flowing property. The price is simply way to high for the amount a renter can pay you every month. Then, you'll run the risk of encountering the same problem you're facing in California.

    Flips in that area are a different story. Owner Occupy homes there are in such high demand some homes don't even last a whole day on the market. The profit margins tend to be a little slimmer, but the speed and the amount of volume that you can do surly makes up for it.

    If you're interested in moving forward hit me up. I'd be happy to help take you to the next level.

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