Transitioning From Buying to Investing

8 Replies

Hi All,  

I'm new to Bigger Pockets and Real Estate Investment.  I've bought a couple homes in the past and done well for myself but I never realized the potential Real Estate has to offer.  Now that I've discovered BP I'm consuming knowledge and am eager to make my first deal.  I'm interested in everything BP has to offer but am looking to do some house hacking and multi-family to get my feet wet.  I'm in the California Central Valley area which appears to be an area with high appreciation:

 https://www.biggerpockets.com/renewsblog/2014/12/3...

Be that as it may I'm still eager to find a great deal and even more eager to learn and connect with like minded people.  

Thanks!

@Devin Garrett you would be wise to learn how to evaluate a deal, then look at everything in your market in order to find a deal that makes sense. Appreciation is great, but cash flow is more important. When the market cools, cash flow will keep flowing. Learn to calculate value, cap rate, cash on cash return, etc based on the current rent. Run the numbers on everything you can find. What you will find is that your return, in your market, isn't as much as a good mutual fund. I have family in Turlock, and I have tried to make sense of investing there, and I couldn't compared to other areas of the country. First learn, then decide.

Devin everyone have given you great advice. Cash flow and a decent employment center are key. Modesto, Fresno, Visalia and bakersfield. Could be good to look at for cash flow.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you