Newbie from San Jose , CA

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Newbie from San Jose , CA

Hui Kiang
San Jose, CA · Member since 2016 · 41 posts · 8 votes

Hello everyone

I am 3 days new here in BP. My husband Eric and I have been really excited to find this site and we've started listening to its podcast and reading post here like crazy in these few days. But now we run into Qs when talking about where to invest.

As we are fairly new to real estate investment, probably it's a safer bet to follow the recommendation to look for opportunities within 2 hours drive. However, the positive cash flow near SF Bay Area seems to be really hard.

Any thoughts or recommendations here will be highly appreciated. Any area nearby still have potential? We also think about some out of state market like Eugene, Austin or San Antonio. But not sure which route will work better for newbies like us.

For some background about us, we have lived in S San Jose for more than 10+years. Bought our house @2007 there.  Out area was hit pretty badly during the bubble but finally went back 2-3 years ago. Now we have some nice equity and ready to start a new journey here in BP.

We are more like buy and hold for long term type. If there is great potential for future growth, we are fine to go with breaking even too.

Thanks in advance.

3Reply
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Most Popular Reply

Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
9y

@Hui Kiang

Welcome to the BP family! You came to the right place to learn all about real estate investing! Here are some recommendations for you:

Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

Wishing you the best!  

2Reply
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  • Account Closed
    Investor · Lisbon, Portugal · Member since 2016 · 48 posts · 8 votes
    9y

    Hello and welcome @Hui Kiang!

    Unfortunately I can't help you with those questions because I don't know the US market. But I'm sure you'll find plenty people who can.

    Good luck! I'm sure you'll do well if you stay active in the forum.

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    9y

    @Hui Kiang

    Welcome to the BP family! You came to the right place to learn all about real estate investing! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
    Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best!  

    2Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y

    Welcome, @Hui Kiang.

    Solano County and Sac are worth checking out. If you can get ahead of the pending transit hubs and are OK with a little risk for a little reward, so are places in the East Bay.

    The Bay Area crew is super helpful and friendly, don't hesitate to reach out to anyone.

    1Reply
  • Haseeb Awan
    Investor · Ottawa, Ontario · Member since 2016 · 225 posts · 46 votes
    9y

    Bay Area is certainly expensive. While cashflow properties are hard to find specially at less than 1M price range, I have heard of lot of flipping opportunities. I am flying in for a day twice in December to analyze few deals. Best bet is to check out local REI meetups.

    0Reply
  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Hui Kiang

    Welcome to bigger pockets. The Bigger Pockets Blog https://www.biggerpockets.com/renewsblog/is a great resource for all aspects of real estate investing.

    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Hui Kiang:

    Hello everyone

    I am 3 days new here in BP. My husband Eric and I have been really excited to find this site and we've started listening to its podcast and reading post here like crazy in these few days. But now we run into Qs when talking about where to invest.

    As we are fairly new to real estate investment, probably it's a safer bet to follow the recommendation to look for opportunities within 2 hours drive. However, the positive cash flow near SF Bay Area seems to be really hard.

    Any thoughts or recommendations here will be highly appreciated. Any area nearby still have potential? We also think about some out of state market like Eugene, Austin or San Antonio. But not sure which route will work better for newbies like us.

    For some background about us, we have lived in S San Jose for more than 10+years. Bought our house @2007 there.  Out area was hit pretty badly during the bubble but finally went back 2-3 years ago. Now we have some nice equity and ready to start a new journey here in BP.

    We are more like buy and hold for long term type. If there is great potential for future growth, we are fine to go with breaking even too.

    Thanks in advance.

    Hello and welcome to BP! This is a great place to get started and learn everything you need to know for REI! I would lilke to wish you the best of luck!

    Happy investing!

    0Reply
  • Leslie Pappas
    Professional · San Francisco, CA · Member since 2014 · 876 posts · 301 votes
    9y

    Welcome @Hui Kiang! Yes the bay area can certainly be a tough place to get started with real estate investing. When looking at other areas or even outside of the state my recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It's can also be safer to diversify your investment properties across the country.

    1Reply
  • Ryan Hopkins
    Architect · Raleigh-Durham, NC · Member since 2016 · 76 posts · 47 votes
    9y

    Welcome @Hui Kiang! @Chris Mason said it right; Solano County, Sac, Contra Costa and San Joaquin county have plenty of opportunities. Lots of infrastructure and city/town/county investing going on. If you can get ahead of these hubs and have someone plugged into the local development, you'll find where to best invest and for what. Feel free to reach out with any questions! Good luck on this roller coaster!

    2Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thank you for the great thoughts and warm welcome. Feel really blessed to be @ this site w you all.

    1Reply
  • Robert Musallam
    Investor · San Jose, CA · Member since 2014 · 294 posts · 113 votes
    9y

    Hi @Hui Kiang Welcome to BP!

    You're in the right place to learn all about investing. Reach out to our community anytime, we're here to help!

    Best of luck to you moving forward!

    0Reply
  • Chuck Nakata
    Stockton, CA · Member since 2016 · 9 posts · 2 votes
    9y

    Hi Hui Kiang, we live in Stockton, Ca. It has plenty of opportunity, but when you say you are from the B.A. the people you talk with will smell MONEY! It happened to us. We are not real estate agents, nor associated with any real estate office. We like living in Stockton. Stockton is pushing the drug thugs out and they are going to other smaller communities nearby. (not our problem anymore is what you hear from Stockton promoters). The B.A. prices will adjust, don't refi.

    1Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thank you @Account Closed

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thank you @Dmitriy Fomichenko!

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thanks @Chris Mason, Any specific area in Solano or Sac you like? Also, how to reach out to Bay Area crew? I guess there is a forum for SF Bay Area folks? 

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thanks @Chuck Nakata, Great news for Stockton! Any specific neighborhood you see a great and nice changes?  Do you have investment property in Stockton? 

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thanks @Robert Musallam

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y
    Originally posted by @Haseeb Awan:

    Bay Area is certainly expensive. While cashflow properties are hard to find specially at less than 1M price range, I have heard of lot of flipping opportunities. I am flying in for a day twice in December to analyze few deals. Best bet is to check out local REI meetups.

    Thanks Haseeb. Good to know. Too bad we're not the handy type. But definitely love to try flipping some day. 

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y
    Originally posted by @Ryan Hopkins:

    Welcome @Hui Kiang! @Chris Mason said it right; Solano County, Sac, Contra Costa and San Joaquin county have plenty of opportunities. Lots of infrastructure and city/town/county investing going on. If you can get ahead of these hubs and have someone plugged into the local development, you'll find where to best invest and for what. Feel free to reach out with any questions! Good luck on this roller coaster!

     Thanks Ryan. Any specific area you'll recommend me to look further? 

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thanks @Leslie Pappas. Totally agree. Then finding a good location and a property manager will be really crucial. We're thinking to plan on investing 1 property each year. If we can do it right, maybe we can retire in 10 years.  

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thanks @Mark Nolan. Great tip! 

    0Reply
  • Haseeb Awan
    Investor · Ottawa, Ontario · Member since 2016 · 225 posts · 46 votes
    9y

    @Hui Kiang - No worries you will get to that. Just have a plan B if you are unable to sell the house :)

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y

    Thanks @Tom Ott. Looks like you're the pro from Cleveland. Do you think if it's still the good time to invest in Cleveland? 

    0Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y
    Originally posted by @Hui Kiang:

    Thanks @Chris Mason, Any specific area in Solano or Sac you like? Also, how to reach out to Bay Area crew? I guess there is a forum for SF Bay Area folks? 

     Putting "Bay Area" in posts does it, as does PMing or calling people that could help you achieve your goals. :)

    0Reply
  • Hui Kiang
    OP
    San Jose, CA · Member since 2016 · 41 posts · 8 votes
    9y
    Originally posted by @Chris Mason:
    Originally posted by @Hui Kiang:

    Thanks @Chris Mason, Any specific area in Solano or Sac you like? Also, how to reach out to Bay Area crew? I guess there is a forum for SF Bay Area folks? 

     Putting "Bay Area" in posts does it, as does PMing or calling people that could help you achieve your goals. :)

     Ah...I see. Sorry about this super newbie question. : )

    0Reply
  • Wes Blackwell
    Real Estate Agent · Phoenix, AZ · Member since 2016 · 738 posts · 1k+ votes
    9y

    @Hui Kiang -- if you're looking to invest locally within a 2 hour drive, the two places I recommend the most are either Stockton (where I'm from) or Sacramento (where I live). Here's why:

    1. Sacramento -- The Roseville/Sacramento area was just selected by Realtor.com to become the #4 hottest metro area in the nation in 2017. We're expected to see an annual sales growth of 4.9% and appreciation of 7.2% next year. Because of the lower inventory that's stimulating this raise in home values, rents in Sacramento are surging to higher and higher prices. Sacramento experienced the second-biggest year-to-year growth for rent in August, with rent in 2015 averaging $1,145, while in 2016, the average for the same month was $1,281. Lastly, the city has started to once again promote itself as "Silicon Valley East" and the city is attracting tech companies to hasten job growth for the future. Over $10 million dollars has been set aside to help tech companies flourish in the next few years, and we'll likely see this growth continue under the new mayor Darrel Steinberg.
    2. Stockton -- Stockton's main attraction is it's affordability, which was the main reason it surged in home values during the early 2000's before the crash. You can simply not find a cheaper duplex, triplex or fourplex that cash flows anywhere else nearby. The Stockton-Lodi market was the 5th hottest in the country earlier this year, and is still sitting pretty in the top 20 hottest markets according to Realtor.com. Stockton has always been a city of industry, and it shows no sign of slowing down as the city leads the region's job growth. Major companies like Amazon have set up shop there, along with a new rubber recycling plant and a new gas plant. The new leadership under youthful and energetic mayor Michael Tubbs was spurred by the highest voter turnout for the city since 2008. While the city occasionally makes the headlines for bad news stories, perhaps it may be turning around and become a great place to invest yet again.
    3. Out of State -- If looking out of state, here's my most important piece of advice: Know the region and potential as in depth as I just described above. Fly out to view the property before purchasing it. Research the local rental rates before just believing what is told to you. Get solid referrals for any turn-key providers you work with along with any property managers you plan on using. You really have to do you due diligence and read what challenges and obstacles other investors have faced investing out of state. It adds another layer of complexity towards an already complex analysis, so be sure you're ready for it.

    Anyhoo, welcome to the site! If you're interested in learning more about the potential in Stockton and Sacramento, feel free to connect with me and send me a message. Best of luck to you!

    2Reply
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