SF Bay Area REI Beginner

8 Replies

Hi everyone, I'm a budding real estate investor based out of the SF Bay Area. Given the astronomical prices out here, I'm initially thinking of getting started with SFH/smaller MFH in more affordable metro areas within a short flight from San Francisco: Vegas, Boulder, Tempe, Tucson, Salt Lake, etc.

I'm in this for the long game with a focus on cash flow. Looking forward to learning from all of you and potentially even partnering with some of you down the road!

I’m from SLC and live in Tucson now. Have many friends still in Utah that have multiple properties. The market there is super inflated. In fact, many of them are looking in Tucson to diversify. For what it’s worth 

Welcome, Roy! Sounds like you are developing a solid plan for your real estate investment journey. 

If you haven't already, I recommend plugging into the Bigger Pockets podcast - that was a huge source of education for me when I first started. Dishes out lots of inspiration along with the learning.

Best of luck to you and I look forward to following your journey!

Welcome to BP @Roy Mathew ! My own rental business has been focused on Tempe, AZ. Solid rents, very low vacancy, and consistent rental demand from an ever growing number of college students. The other nice thing about student rentals is that the demand is predictable, which takes a lot of the stress out of being a landlord. 

As an agent, I now help other investors buy smart rental properties in Tempe and other Phoenix metro cities. Have been doing a lot of small multi family business out in Mesa, which is definitely worth a look on your end. 

Originally posted by @Brian Mitchell :

I’m from SLC and live in Tucson now. Have many friends still in Utah that have multiple properties. The market there is super inflated. In fact, many of them are looking in Tucson to diversify. For what it’s worth 

 I am going to disagree that the SLC market is super inflated. It’s definitley high but I believe the fundamentals are there to support it. Huge population increases, record low unemployment, low land supply for continued growth, very business friendly state attracting more and more businesses, one of if not the highest birth rates, ppl with one of the longest life expectancies in the US...these all lead me to think over the long term these current prices will seem small when looking back. I think we are approaching the top but it’s really hard to say what will happen in the next recession...will rents and values decrease a little, a lot, stay flat...? Who knows. 

Now, all that being said...the rent to price ratios are not good on most properties I analyze on the MLS and it's tough (for me at least) to find something that "cash flows." There are plenty of investors who are finding great deals though. One of them was just on one of the recent podcasts, #288 Jason and Carrie Harris.

The long term fundamentals of Northern UT are very strong. 

My goal is 4 properties a year or 8 plus doors in the Salt Lake area. I do buy and hold so I am not worried about future market corrections. Prices are actually expected to double in the next 20 years as population is expected to double as well. I find properties pretty frequently that have potential for $1,000 plus monthly cash flow. Some of the best deals are in areas that a single family can be converted to duplex or triplex in an area or street that has multi unit properties that can be Re zoned to create instant equity. 

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