New Real Estate Investor

New Member Introductions
8yFollow

New Real Estate Investor

Jonathan Tauber
Member since 2018 · 2 posts · 0 votes

Hi all,

First and foremost, I'd like to introduce myself to this forum as I've been a BP podcast listener for some time, but just now decided to join with an interest in being an active member of the community. I've just moved back to US from abroad and made a transition into working in real estate; I'm in asset management at a prominent owner/operator with a significant California portfolio (mostly multifamily but also has commercial). I worked in investment banking and financial services for about a decade before making my transition.

I'm looking to start investing but having trouble finding the right geography. My ideal first investment would be a 2-4 plex. Prices here in my native Los Angeles are currently exorbitant (IMHO) and I've started researching other geographies in western US. Currently on my list: SLC, Denver, Seattle, Portland, Austin. Any tips from the BP community on how to approach this?

I'm generally happy to engage on the above topic or anything else related to RE investing. Looking forward to connecting!

Jonathan

0Reply
63 views

Most Popular Reply

George Blower
Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
8y

@Jonathan Tauber

Welcome to Bigger Pockets.

1Reply
See this reply in the discussion

6 Replies

Jump to latestLatest
  • Account Closed
    Rental Property Investor · Las Vegas, NV · Member since 2018 · 133 posts · 171 votes
    8y

    @Jonathan Tauber  Welcome.  I am an LA native also but don't live there right now.  So I know how expensive it is, just like most of the rest of California.... so I ended up investing in Las Vegas.

    Do you have any personal experience with the cities you are considering to invest in?  If you have lived in any of them previously, or even visited, there is no substitute for first hand knowledge of an area even if it was just a brief visit.  Others may have different ideas, but I personally would have a hard time investing anywhere I had never even visited before.  

    What made you narrow it down to those cities?

    0Reply
  • Jonathan Tauber
    OP
    Member since 2018 · 2 posts · 0 votes
    8y

    Hi John,

    I “narrowed” my search down to those cities primarily because of demographic and employment trends I like (and because I had to narrow it down somehow). All of the cities have growing populations, growing median incomes, and are attracting / already have attracted talent across Important industries (i.e. tech among others). 

    I’d be interested to hear about your investing in Vegas as well. What do you invest in primarily? Are you at all worried about what would happen there in a recession environment?

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    8y

    Welcome to the BP family @Jonathan Tauber ! Glad you joined the best real estate investing website! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users

    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best!

    0Reply
  • Account Closed
    Rental Property Investor · Las Vegas, NV · Member since 2018 · 133 posts · 171 votes
    8y
    Originally posted by @Jonathan Tauber:

    Hi John,

    I “narrowed” my search down to those cities primarily because of demographic and employment trends I like (and because I had to narrow it down somehow). All of the cities have growing populations, growing median incomes, and are attracting / already have attracted talent across Important industries (i.e. tech among others). 

    I’d be interested to hear about your investing in Vegas as well. What do you invest in primarily? Are you at all worried about what would happen there in a recession environment?

    It sounds like you used good criteria to narrow your search, demographics and employment are very important to me also.  Have you lived in any of those cities or visited?

    As for Vegas, I own townhouses, I actually would have preferred 2-4 units but Vegas really never was a big market for those except for D and pretty rough areas so I wasn't interested. I picked to invest there for the same demographic reasons....  the population is one of the fastest growing in the US (Clark County was #2 last year behind Maricopa/Phoenix).  But also I have spent a lot of time there over the years so I am very familiar with the city and knew where to buy and where to avoid. As for recession, the economy is diversifying, UNLV is expanding, sports teams are moving there, etc so there's a lot going on.   Also I did enough research that I know what the rents were during the last recession so I know what the worst case scenario is for my cash flow and factor that into my numbers.   Even if rents fell back to what they were during the previous recession (which would really be a stretch), I would just cash flow lower for a time until they recovered.  Rents don't always fall during a recession though sometimes they even go up because the demand for rentals increases.  So yes while the value of properties may fall during a recession, who cares as long as I am getting my rent checks it has no impact on me.

    I think where you buy also depends on your goals, if you are looking for cash flow, appreciation or both?   High cash flow areas may have no appreciation potential, and some high appreciation areas may have negative cash flow.  And some have a bit of both.  That's where the research and analysis comes in when looking at an area, and what deals can be had in them.

    1Reply
  • George Blower
    Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
    8y

    @Jonathan Tauber

    Welcome to Bigger Pockets.

    1Reply
  • Kevin Moules
    Rental Property Investor · Turlock, CA · Member since 2018 · 226 posts · 147 votes
    8y

    @Jonathan Tauber, welcome to BP! I have been a member for about 8 months now and can say I have learned a lot and contacted a lot of folks. Do not be afraid to reach out to other BP members even if they seem way out of your league. I have spoken to several podcast folks and they all have been helpful one way or another. I am from CA central valley and prices are high right around my area but I have looked in Bakersfield. Prices are more reasonable in the central valley than socal.  Good luck and God Bless!

    @Dmitriy Fomichenko, thanks for always helping out the new folks! I see you post on the new forum all the time. Great to guide us new folks to good reading material. 

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free