Relative Newbie Investor from Rohnert Park, CA

Relative Newbie Investor from Rohnert Park, CA

Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes

Hello Bigger Pockets! 

My name is Brad Semenoff and I am a relative newbie when it comes to real estate investing. I say relative because I was lucky enough to keep our first townhouse as a rental unit when my wife and I bought our current home, so I've been a landlord for about 5 years now. I went through my first eviction last year and that's when I realized that I wanted to learn more about Real Estate Investing and being a landlord so that it wouldn’t happen again, which led me to Bigger Pockets. I've been reading BP books and attending the webinars to learn as much as I can since then, but it's time to put myself out there and start trying to take action!

I am a father of two young boys and husband of an amazing work-at-home mom. I work on a freelance basis in the film industry and am looking to use long term buy and hold investing as a way to supplement my main work income so that I can spend more time with my family and less time worrying about finding the next gig. My plan is to buy two to three SFH's a year for a few years to get my feet wet before eventually moving to small multi-family houses.

I live in the San Francisco Bay Area, so investing locally is mostly out of the question. I’m looking to invest in out of state markets that are more within my financial reach. I’m hoping to learn more about which markets might be a good fit for long distance investing and what criteria I should look for. Any links to threads or blog posts along those lines would be very much appreciated!

Thanks for reading this and I look forward to chatting with you all!

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San Francisco, CA · Member since 2018 · 8 posts · 10 votes
8y

Hi Brad, 

I am a newer out-of-state investor as well, based in SF. I would say that once you have determined your markets to explore, check out the location-specific forums on biggerpockets and just start reaching out to other investors. I try to get a few recommendations for agents, property managers, etc. from local investors before I even start looking in an area. Local advice is (often) the best advice! 

Also, make sure that you have clear goals with your investments before trying to find your market. Cash-Flow investing might land you in very different markets than a commercial investor may be looking. 

Best of luck, 

Joey

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  • Tax CPA · Charlotte, NC · Member since 2014 · 215 posts · 186 votes
    8y

    @Brad Semenoff 

    Welcome to BP! Glad you survived your 1st eviction! 

    Here are some resources I suggest to newcomers (One of the BP books is on Long Distance Rentals).

    If you haven’t already listened to the podcasts I’d start there.

    Podcasts

    Episode 108 - Grant Cardone... Just listen…

    Episode 283 Paul Thompson - Quite a new episode but I would think everyone would agree this is a top episode. Mainly, the systems implemented are fascinating (VA, automated offers, etc.) Plus...escape velocity...

    Episode 113 – Jay Papasan - Very practical slow and steady advice

    Episode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k

    Last but not least, I also recommend all the tax advice given by my fellow CPAs on the BP Podcast.

    Amanda Han

    Brandon Hall

    Tax Reform Update – Brandon Hall and Amanda Han

    Linda Weygant

    Guides

    Ultimate Beginners Guide

    Forum Stickies

    BP Calculators or spreadsheets uploaded by members

    My Favorite Books

    I have to say all of the BP books…right? :)

    The Millionaire Next Door

    The Millionaire Real Estate Investor

    What Every Investor Needs to Know About Cash Flow

    Hope this information can give you a good start. Feel free to reach out with any questions. 

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

    Wow thanks for the wealth of resources, @Account Closed! I’ve read Long Distance Real Estate Investing, but I definitely want to do a more thorough reading and take notes this time. :) 

    I'll add all those podcast episodes to my player for my commute! I'm very interested in learning more about the tax advantages of REI, so I'm glad that you included those tax related episodes. Great info!

    Thanks again! 

  • Tax CPA · Charlotte, NC · Member since 2014 · 215 posts · 186 votes
    8y

    @Brad Semenoff not a problem! If you have any tax questions feel free to ask as I  have experience with real estate tax. 

  • Real Estate Agent · Fremont, CA · Member since 2018 · 48 posts · 21 votes
    8y

    @Brad Semenoff, welcome to BP. I am based out of the SF Bay Area. Also looking to invest in my first out of state rental home.

    Let me know if you want to connect

  • Rental Property Investor · Novato, CA · Member since 2018 · 110 posts · 145 votes
    8y
    Hi Brad welcome. I work in Petaluma so nearby. I’ve been investing in remote real estate since 2005. One book I recommend is remote controlled real estate riches by Adiel Gorel. I work 9-5 and can meet up for lunch if u like. I started in Dallas, but sold that property in 2012 due to high property taxes (2.8%). Now all my rentals are in Phoenix. 1 1/2 hr flight from Oakland.
  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

    Hi @Johnson Michael. Yes it would be great to connect and share tips and experiences about the process. 

    Have you singled out a market to invest in? That seems to be my current stumbling block since it all seems a little overwhelming. I think I just need to pick a few markets to research that others have had success in and just dive in and start analyzing deals and looking for connections. The first deal doesn’t need to be a homerun, it just needs positive cash flow to get the ball rolling for future investments. 

  • Rental Property Investor · Novato, CA · Member since 2018 · 110 posts · 145 votes
    8y
    Choose the market wisely, since you will most likely be flying out there at least once a year and setting up a team there. I’ve been thru 5 property managers in Phoenix and finally decided to self manage with the help of my realtor.
  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

    Thanks for the tips @Derek Janssen! It would be great to meet up sometime. 

  • Real Estate Agent · Fremont, CA · Member since 2018 · 48 posts · 21 votes
    8y
    I work for a real estate tech startup, roofstock.com. We are into SFR investment homes throughout the country. My action plan is to have my first out of state property through Roofstock. Just that I have been a bit lazy as well as being an employee we have some restrictions on when we can buy properties through Roofstock.

    Cheers,
    Johnson  

    Originally posted by @Brad Semenoff:

    Hi @Johnson Michael. Yes it would be great to connect and share tips and experiences about the process. 

    Have you singled out a market to invest in? That seems to be my current stumbling block since it all seems a little overwhelming. I think I just need to pick a few markets to research that others have had success in and just dive in and start analyzing deals and looking for connections. The first deal doesn’t need to be a homerun, it just needs positive cash flow to get the ball rolling for future investments. 

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

    Thanks, @Johnson Michael. I’ll check them out.

  • San Francisco, CA · Member since 2018 · 8 posts · 10 votes
    8y

    Hi Brad, 

    I am a newer out-of-state investor as well, based in SF. I would say that once you have determined your markets to explore, check out the location-specific forums on biggerpockets and just start reaching out to other investors. I try to get a few recommendations for agents, property managers, etc. from local investors before I even start looking in an area. Local advice is (often) the best advice! 

    Also, make sure that you have clear goals with your investments before trying to find your market. Cash-Flow investing might land you in very different markets than a commercial investor may be looking. 

    Best of luck, 

    Joey

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

    Great advice @Joey Hurlocker! Right now I’m looking in the Phoenix area based on some of the advice from@Derek Janssen and it looks promising. I’m definitely not ruling out other markets though. I’ll check out BP for the Phoenix market. Thanks again! 

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

    Hey @Account Closed, I just wanted to say thank you again for those resources that you suggested. I’ve listened (or re-listened) to all of the podcast episodes that you suggested and it’s given me a lot of food for thought, especially from a tax perspective. 

    I also really liked Episode 19 of the Bigger Pockets Money podcast with Chad Carson who has a great perspective on using REI as a tool to get to early retirement and then stopping once you get there to take stock and see if that's enough.

  • Rental Property Investor · Novato, CA · Member since 2018 · 110 posts · 145 votes
    8y
    Originally posted by @Brad Semenoff:

    Hey @Account Closed, I just wanted to say thank you again for those resources that you suggested. I’ve listened (or re-listened) to all of the podcast episodes that you suggested and it’s given me a lot of food for thought, especially from a tax perspective. 

    I also really liked Episode 19 of the Bigger Pockets Money podcast with Chad Carson who has a great perspective on using REI as a tool to get to early retirement and then stopping once you get there to take stock and see if that's enough.

     You may find that you get hooked on the "deal".  Why stop if you're having fun? :)

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y
    Originally posted by @Derek Janssen:

    Good point.

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y

    HI Brad! I'm down in LA and have mostly invested out-of-state. In terms of markets, here are some various articles that might help you with that end of it-

    https://www.biggerpockets.com/renewsblog/2014/02/2...

    https://www.biggerpockets.com/renewsblog/declining...

    https://www.biggerpockets.com/renewsblog/out-of-st...

    Hope those help! Reach out anytime if you have specific questions.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    one of the best investments I ever made was I bought 4 acres behind the home depot in Rohnert park in 1995.

    then all of a sudden they build the graton casino right across the street from me. :)  

    well no cash flow but I paid 27k for it  CASH and paid 300 a year in tax's and listed it for 3 million currently had one offer at 2.4.. not sure if a rental at 27k over the last 20 some years would have done better but got to love path of progress CA real estate..

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

    Thanks for those articles @Ali Boone! I especially liked “How Do Real Estate Markets Differ and Which Should I Buy In” for breaking down the criteria (Cash Flow, Purchase Price, Appreciation, Property Age, Industry, and Neighborhood). 

    You mentioned in one of the articles to ask experienced investors what markets are great for cash flow, but are there specific metrics that you look at to confirm their advice? Zillow has what looks like some pretty good market analyses for housing and rentals for different markets which would answer the purchase price, cash flow, and appreciation questions, but what about industry and making sure that there is economic growth? I’m sure that I could find the info needed on city-data.com, but my head spins every time I go there. 

    BTW I’ve really been learning a lot from your articles on Turnkey investing, so thanks again! I’ve been considering going that route as a means to get started. 

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

    @Jay Hinrichs If you could in any way sell to IKEA and encourage them to put a store in that area I would really appreciate it. ;)@Jay Hinrichs

    My mom has a plot of land in Rio Rancho NM that she inherited and she’s held on to it for years hoping that something like that would happen. I have to tell her your story and see if she still has that land. You never know. 

  • Tax CPA · Charlotte, NC · Member since 2014 · 215 posts · 186 votes
    8y

    @Brad Semenoff Glad the resources helped. I need to fire the up the money podcast as I haven't yet. 

    Feel free to reach out with any tax questions! 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Brad Semenoff:

    @Jay Hinrichs If you could in any way sell to IKEA and encourage them to put a store in that area I would really appreciate it. ;)@Jay Hinrichs

    My mom has a plot of land in Rio Rancho NM that she inherited and she’s held on to it for years hoping that something like that would happen. I have to tell her your story and see if she still has that land. You never know. 

     Well it was calculated LUCK.. new freeway off ramp  New home depot.. and by the grace of god and city planning we came into the city limits by ONE lot.. and they up zoned us to mixed use resi.. so you can have a mixture of commercial and resi.

    it will take a bigger developer to put a bunch of those parcels together.. we are getting looked at.. I had one offer that did not fly.

    but it will happen..its only been 25 years.. but I love land in the path of progress pay cash for it.. let it sit and germinate then cash in.

    I know appreciation folks say is a gamble but its a calculated one and were the big money is made.

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    8y
    Originally posted by @Brad Semenoff:

    Hello Bigger Pockets! 

    My name is Brad Semenoff and I am a relative newbie when it comes to real estate investing. I say relative because I was lucky enough to keep our first townhouse as a rental unit when my wife and I bought our current home, so I've been a landlord for about 5 years now. I went through my first eviction last year and that's when I realized that I wanted to learn more about Real Estate Investing and being a landlord so that it wouldn’t happen again, which led me to Bigger Pockets. I've been reading BP books and attending the webinars to learn as much as I can since then, but it's time to put myself out there and start trying to take action!

    I am a father of two young boys and husband of an amazing work-at-home mom. I work on a freelance basis in the film industry and am looking to use long term buy and hold investing as a way to supplement my main work income so that I can spend more time with my family and less time worrying about finding the next gig. My plan is to buy two to three SFH's a year for a few years to get my feet wet before eventually moving to small multi-family houses.

    I live in the San Francisco Bay Area, so investing locally is mostly out of the question. I’m looking to invest in out of state markets that are more within my financial reach. I’m hoping to learn more about which markets might be a good fit for long distance investing and what criteria I should look for. Any links to threads or blog posts along those lines would be very much appreciated!

    Thanks for reading this and I look forward to chatting with you all!

     Welcome to the site.

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y

     Thanks!

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y
    Originally posted by @Brad Semenoff:

    Thanks for those articles @Ali Boone! I especially liked “How Do Real Estate Markets Differ and Which Should I Buy In” for breaking down the criteria (Cash Flow, Purchase Price, Appreciation, Property Age, Industry, and Neighborhood). 

    You mentioned in one of the articles to ask experienced investors what markets are great for cash flow, but are there specific metrics that you look at to confirm their advice? Zillow has what looks like some pretty good market analyses for housing and rentals for different markets which would answer the purchase price, cash flow, and appreciation questions, but what about industry and making sure that there is economic growth? I’m sure that I could find the info needed on city-data.com, but my head spins every time I go there. 

    BTW I’ve really been learning a lot from your articles on Turnkey investing, so thanks again! I’ve been considering going that route as a means to get started. 

    You bet! Glad it's all been helpful.

    Well and that's the thing with market analysis. All the data can not only make your head spin but it can be difficult to paint the bigger picture from all the micro-data you find. My opinion has always been--hit up people who have already done the analyses and see what you learn and what you find out. Don't trust everyone's analyses of course, but I at least ask around and then widdle it down from there. Even Zillow won't paint a great picture for you. A better source for that kind of picture--rentability, etc.--would be to talk to local property managers. They are the ones with the first-hand actual experience of renting properties out in each neighborhood. Zillow can give stats, but not necessarily the big picture.

    Not sure if that helps?

  • Rohnert Park, CA · Member since 2017 · 25 posts · 8 votes
    8y
    Originally posted by @Ali Boone:

    You bet! Glad it's all been helpful.

    Well and that's the thing with market analysis. All the data can not only make your head spin but it can be difficult to paint the bigger picture from all the micro-data you find. My opinion has always been--hit up people who have already done the analyses and see what you learn and what you find out. Don't trust everyone's analyses of course, but I at least ask around and then widdle it down from there. Even Zillow won't paint a great picture for you. A better source for that kind of picture--rentability, etc.--would be to talk to local property managers. They are the ones with the first-hand actual experience of renting properties out in each neighborhood. Zillow can give stats, but not necessarily the big picture.

    Not sure if that helps?

    That does help, thank you!. 

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