San Francisco, CA · Member since 2016 · 5 posts · 1 vote
Hello,
I'm Kurt Rieschel and as the title of this post states, I am a new homeowner looking to purchase an additional property. I'm a 31 year old male from San Francisco and am looking to learn all I can about this industry so that I can put the equity in my home to good use. I have approximately $200k that I feel comfortable working with, and I'm hopeful that other more experienced members of this community can help guide me in the proper direction.
I currently work as a broker of commercial processing equipment (Pharmaceutical, Food, Mining, Chemical, etc.) and am confident that the skills I've developed in this profession will help me moving forward.
I like the idea of buying and holding property, though I'm trying to be as open minded as possible as I'm aware that there are many different avenues toward wealth creation in this industry.
Thank you - any suggestions, advice, warnings, or words of encouragement would be appreciated!
Hi @Kurt Rieschel! Welcome to the real estate journey. If you prefer to invest in the bay, go with a small multi or newer condo that's not subject to rent control. There is a lot of supply coming on line for condos though, I'd be a little careful for the short pricing but focus on the long term prospect.
People always say you can't cash flow in the bay... they're just not working hard enough (yeah, that's right, I said it. Send your hate mail my way). $200k with leverage you can def find small MFH's in the east bay that'll work.
I also tell people to consider REIT's as well. A little bit more liquidity than holding actual properties but still good returns. If you have any questions feel free to ping me and let me know how I can help.
You won't find much in any of the Bay Area peninsula counties that will cash flow with $200k. You'll probably have to look further out in eastern Contra Costa, You might also try the tri valley area. Otherwise, most Bay area investors have been targeting the central valley for the past year or so.
I would also recommend you connect with some of the REIA groups in the area like http://bawb.info that meets in Marin.
Hi @Kurt Rieschel! Welcome to the real estate journey. If you prefer to invest in the bay, go with a small multi or newer condo that's not subject to rent control. There is a lot of supply coming on line for condos though, I'd be a little careful for the short pricing but focus on the long term prospect.
People always say you can't cash flow in the bay... they're just not working hard enough (yeah, that's right, I said it. Send your hate mail my way). $200k with leverage you can def find small MFH's in the east bay that'll work.
I also tell people to consider REIT's as well. A little bit more liquidity than holding actual properties but still good returns. If you have any questions feel free to ping me and let me know how I can help.
@Kurt Rieschel Welcome Kurt! I am in San Jose, if you ever want to meet up and talk about real estate and the different paths or what I use as my strategy feel free to message me! That's awesome that you have a lot to work with! Maybe consider doing flips (if you have the time or can partner with someone) and then taking those profits and placing them into long term hold in various markets. This way that 200K essentially never runs out! Also look into the BRRRR method as that will also let your money go to work longer. The possibilities are endless for you my friend! Good luck with everything!
Thanks, Gents - I appreciate the insight. I'd love to stay local if possible, though I'm open to the Central Valley as well (if necessary). As my journey continues, I'm sure I'll be checking back in with you two to pick your brain.
Welcome to the BP @Kurt Rieschel! The people saying you can't do something are trying to help, but keep yourself positive. Put in the effort and decide for yourself what is and isn't possible. I'm as green as you are, but I know you're not going to find deals that you don't look for.