Neophyte from Orange County/Los Angeles, California

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Neophyte from Orange County/Los Angeles, California

Chris R.
Glendale, CA · Member since 2018 · 3 posts · 2 votes

Hello BP Family. My name is Chris and I am a counselor. Relationships, poor habits, stuck in a rut or just trying to sort out life, I help people make changes in their life. I have very limited real estate experience but I do have some friends/ family that invest in real estate. They generally buy out of state turn-key properties and have property managers.

I want to become educated in real estate investing. My goal is to have enough cash flow from my real estate investing to become financial free in the next 10 years.

I overhead someone talk about bigger pockets in the gym bout two years ago. I’ve been listening to the podcasts since then but I have not taken any action to make my goal a reality.   

I'm happy to be part of this community and I hope this will be a great learning experience for everyone involved! 

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Logan AllecBusiness Member
Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
8y

Welcome, @Chris R.

SoCal can be a tough nut to crack for newbies.

A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

Also, have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!

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  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    8y

    Welcome, @Chris R.

    SoCal can be a tough nut to crack for newbies.

    A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

    Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

    The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

    Also, have you considered an owner-occupied small multifamily for your first deal?

    You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

    My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.

    I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

    Good luck!

    Clarita CPA Group516 Reviews
    WebsiteView Page
    1Reply
  • Samuel Pawlitzki
    Malibu, CA · Member since 2018 · 77 posts · 32 votes
    8y

    Hey Chris, 

    I just joined the site as well. There's so much great info here. 

    I'm a Realtor in LA and Ventura County. Feel free to reach out if you ever have any questions :)

    0Reply
  • Sanjeev Advani
    Investor · Bakersfield, CA · Member since 2015 · 483 posts · 234 votes
    8y

    @Chris R. welcome to the community!  This is a great place to learn and grow!

    0Reply
  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    8y

    Welcome to the BP community. Happy to network and assist.

    [email protected]
    0Reply
  • Chris R.
    OP
    Glendale, CA · Member since 2018 · 3 posts · 2 votes
    8y

    Thanks for the welcome @Logan Allec. I appreciate it!

    I am considering doing an owner-occupied small multifamily or house hack for my first deal. This would be a buy and hold deal. I’ve been scouring the site and doing tons of search on Renting Vs Buying in Southern California LA/OC. Here’s what I’ve come up with. Buying and house hacking, or owner occupied multi would lower my rent.

    My current living situation is that I’ve been renting for the past several months as I’ve been adjusting to a new job. I like the job and plan to be here for a while so I’ve decided to put down roots. My job is in East Hollywood and I currently live in Glendale. Rent is about $2000 per month for a 1 bed apartment. I want my morning commute (the job starts at 7am) to be less than 45 mins.

    If I were to purchase a 1/1 condo/townhouse, I'd be paying a few hundred more per month. I would be able to manage this increase but I would not be saving/investing as much money as previously. If I were to purchase a 2/2 condo/townhouse, I'd house hack and pay a few hundred less. I'm currently doing research on the pros/cons of condos/townhouse. I've read about HOA's fees, condition of the HOA and the Board of Directors, slower appreciation than SFH, and difficulty selling the condo. If I were to purchase a SFH, I'd house hack and pay a few hundred less. It would probably be the similar prices to the 2/2 condo/townhouse. A multi-family home might be out of reach for me at the moment.

    Where I live now is a nice area. If I bought the 1/1 condo/townhome, I'd stay in the area. With the 2/2, I'd be further from work, have a longer commute and would be in a less nice area. With the SFH, I'd be pushed out a little further so my commute would be longer and again, in a less nice area.

    1Reply
  • Chris R.
    OP
    Glendale, CA · Member since 2018 · 3 posts · 2 votes
    8y

    Thank you @Samuel Pawlitzki, @Sanjeev Advani and @Jo-Ann Lapin.  When the time is right, I'm sure we can find ways to assist one another!

    0Reply
  • Benjamin Birnbaum
    Investor · Los Angeles, CA · Member since 2015 · 4 posts · 1 vote
    8y

    Don't underestimate the benefits of truly loving where you live.  Of course there will be differing opinions on this, but I personally would stay where you are since it's a nice area that you like and with a reasonable commute.  Whether that means buying a condo/townhome or continuing to rent while saving for a sfh.

    0Reply
  • David Avetisyan
    Rental Property Investor · Glendale, CA · Member since 2013 · 685 posts · 334 votes
    8y

    Welcome to BP where the people are helpful and the knowledge is vast. This place will definitely help you grow.  

    Also, just want to give a quick shout out to Glendale, California, rated one of the safest places in the USofA - where are my Armenian's at?!

    To your success!

    0Reply
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