New member (and hopeful OOS investor-to-be)

Winchester, CA · Member since 2018 · 7 posts · 1 vote

I'm a newbie, from southern California. We are in our 40s with 1 headed to college, and 3 little ones at home. Like most everyone here, we are looking for early rerirement, and the chance to spend more time with our kiddos. My husband and I currently own 2 rental properties (both poor investments, ha... they were homes we moved out of and just didn't let go of). So, we are accidental investors, I suppose.

We'e recently inherited a 3rd... the more we read/study/learn, the more we realize these are not working for us, and we are excited to turn that around!

We are especially excited about out-of-state investing and networking... flipping feels unrealistic in our market, but always open to try!

Excited to continue learning from all of you!

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Amy KendallBusiness Member

Real Estate Broker · Lehi, UT · Member since 2016 · 397 posts · 318 votes

@Michelle Jarreau Welcome to the forums! I too started in investing by renting out my first home without really knowing what I was doing. That home was on a 15 year mortgage and only cash flowed about $100/month. It wasn't the greatest rental, but it allowed me to later tap into the equity and purchase other investments that have cash flowed very well. I still have that property and it now cash flows $500/month and it will probably be my first 1031 into a larger multi family property. Hopefully your accidental investments will help springboard you into early retirement! Good luck!

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Amy KendallBusiness Member
Real Estate Broker · Lehi, UT · Member since 2016 · 397 posts · 318 votes
8y
@Michelle Jarreau Welcome to the forums! I too started in investing by renting out my first home without really knowing what I was doing. That home was on a 15 year mortgage and only cash flowed about $100/month. It wasn't the greatest rental, but it allowed me to later tap into the equity and purchase other investments that have cash flowed very well. I still have that property and it now cash flows $500/month and it will probably be my first 1031 into a larger multi family property. Hopefully your accidental investments will help springboard you into early retirement! Good luck!
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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
8y
@Michelle Jarreau, accidental landlords is a real thing. He has a property. She has a property. They get married and become landlords - boom!
And what your experiencing is also very common. Houses of the type you like to live in usually are great for appreciation but horrible for cash flow as a return on your equity. California and the west coast are ground zero for this kind of thing. So may investors are doing exactly what you're contemplating - sell now that appreciation is high and may be slowing. And move the assets to places or properties where I can get a better return dollar for dollar with significantly more cash flow.
The key is to do that in a tax deferred environment so you don't have to pay the tax on that appreciation and instead get to use the deferred tax to let you buy more real estate. This is the 1031 exchange that @Amy Kendall is talking about.
You may be accidental but your path is solid!
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Nabil SuleimanBusiness Member
Real Estate Agent · Los Angeles, CA · Member since 2016 · 596 posts · 299 votes
8y
@Michelle Jarreau
Welcome to BP, it sounds like you are in a great position to make decisions that will take you closer and closer to your retirement goals. Keep reading and learning what you can from BPP and always feel free to reach out and ask any questions that come to mind. That's what we are here for.
[email protected]661-904-1725
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Michelle Jarreau
OP
Winchester, CA · Member since 2018 · 7 posts · 1 vote
8y
Thank you, everyone foe your responses. I'm literally blown away at the podcast, info, and how responsive this group is.
Hubby and I are geeking out listening to one now!
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