As a first time home buyer, how can I buy in CA?

Question

About me:

- My first post on BP - (woo!)

- Graduated college 4 years ago - (27 y/o)

- Currently renting in San Francisco - (hate the idea of renting!)

- Interested in buying my first place as an investment property

Hi BP,

I'm so eager to make my first move in real estate. I'm leaning towards a buy and hold (keep forever, maybe refinance one-day), but I'm open to other suggestions. My hope is to purchase something within ~ 1 hr drive of San Francisco, so I can manage the property on my own. I have some hesitations, because California is soo expensive and there is so much uncertainty in the market. It can be difficult to save, especially in SF, so my affordability will likely lead me outside of San Francisco.

Any recommendations on how I can get started? What would your first play look like?

Your tips and advice are greatly appreciated!

- Lee

Matt Mayo · Answer

Hi Lee,

Congrats on getting ready to make your first move into real estate! I think your first move would be to assess where you are financially, and determine how much you'll qualify for (down payment and your debt to income ratio are going to be the main factors on what kind of move you can make and where).

Once you have an idea of how much you can spend, then you can start looking at properties in your price range.

If you can swing it, getting a 3-4 unit property and living in one of the units is a great way to maximize your investment, while still being able to take advantage of the rates for a personal mortgage (owner-occupied, primary residence).

Feel free to reach out, and I can answer any questions you have in more detail if you'd like!