New Investor from the Central California Coast

New Investor from the Central California Coast

Monterey, CA · Member since 2018 · 7 posts · 2 votes

Hello Bigger Pockets Community!

I’m originally from Northern California, but currently live and work in Monterey.   

I’ve always been interested in investing in real estate, but never really took any steps towards it.  I just got back from a two month trip through South America, and essentially got a taste of what financial freedom could feel like.  

I don’t have much free time, but have the salary, capital, and no serious personal obligations, to start putting some serious effort and money into real estate.  I’ve been binge listening to the Bigger Pockets podcast, and doing as much research as I can.  

Buying locally isn’t really an option for investing.  I’m currently trying to decide on a location on where I should start, since I’ll be an out of town investor.  I’m also trying to decide if I want to start with a few single families, or a multi unit.  I also have a long term friend looking to split a down payment on a larger multi unit property.  

Any tips for the decision making process? My current plan is to just buy the first good deal I find, that makes sense financially.  

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Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
8y

Many Californians flock to mid-west for income. There is very little appreciation out there.

A client from San Jose did a 1031 exchange from SJC. She went to Texas got an entry level SFH, Tennesee

and Nebraska SFH, and MF. Bragged she got 3 for the price of one from SFBA. The property managers were not due diligent. Long story to short she is losing one MF, and others not paying her leveraged mortgage. She is kicking herself not to stay close to population and high rental urban like SFBA.

My advice is may be in more affordable California cities.  Fresno may be an option since it is just a couple hours away to look after one's investment.

Sam Shueh

Campbell, CA

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  • Trexie E.Pro Member
    BiggerPockets Support · Davao, Davao del Sur · Member since 2015 · 937 posts · 163 votes
    8y

    Hey @Rajheim Hunt

    Welcome aboard! Check out the nearby members and network at https://www.biggerpockets.com/meet, it will help you a lot to find partners that can help you out in investing.

    BiggerPockets
  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    8y

    Many Californians flock to mid-west for income. There is very little appreciation out there.

    A client from San Jose did a 1031 exchange from SJC. She went to Texas got an entry level SFH, Tennesee

    and Nebraska SFH, and MF. Bragged she got 3 for the price of one from SFBA. The property managers were not due diligent. Long story to short she is losing one MF, and others not paying her leveraged mortgage. She is kicking herself not to stay close to population and high rental urban like SFBA.

    My advice is may be in more affordable California cities.  Fresno may be an option since it is just a couple hours away to look after one's investment.

    Sam Shueh

    Campbell, CA

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

    Welcome you should consider salinas near by you and other central ca areas like balersfield. Much easier closer to home.

  • Realtor · Mountain View, CA · Member since 2017 · 120 posts · 108 votes
    8y

    Investing in the Bay area is a great way to gain long term wealth. It is just not great for cash flow. So if you are in it for the long run you may want to at least look into staying closer to home. 

  • Monterey, CA · Member since 2018 · 7 posts · 2 votes
    8y

    I appreciate the replies!

    Investing locally IS an option, but everything is a break even scenario at best, and ideally, I would like to invest in some cash flow properties.  I could buy a residence for myself, but then would have about an hour commute time each day, and pay a significantly higher mortgage than what I currently pay in rent.  This is why I started looking elsewhere.  

  • Real Estate Agent · Fresno, CA · Member since 2014 · 368 posts · 174 votes
    8y

    hey @Rajheim Hunt , congrats on getting started.  The best tip I was ever given and it holds true today, is to just get started and do the best you can.  Even if you leave money on the table, break even or lose money on the first deal, it's all good.  You won't make the same mistakes twice and the next one will be huge!  Good luck.

    As far as the decision-making process goes between SFH and MFH, choose the one you feel the most comfortable with. I am biased to MFH because I feel the risks are less and the returns are greater, however, it's also the RE class I know the most about and feel the most comfortable in. I have a friend here in Fresno who does SFH exclusively and makes a killing at it, while I don't think I could be successful at SFH. You can make a lot of money at anything you know a lot about. I hope that helps, good luck!

    Feel free to message me if you want to talk further. 

  • Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
    8y

    Why don’t you look into 2-4 units. Live in one unit, manage the others, learn the ropes, get future appreciation (as its Bay Area.) Best way to get in the game IMO. 

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