New aspiring investor from the Bay Area

New Member Introductions

New aspiring investor from the Bay Area

Armel BayotPro Member

Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes

Hello BP community,

I work as an ER Nurse and got bit by the real estate bug early this year after getting my property in the Bay Area. Attended a couple of seminars about real estate investing and almost bought a $20k advance education from a seasoned investor. Thank God another attendee from the seminar enlightened and referred me to BiggerPockets instead.

Its almost 1.5 months since I've been listening to BP Podcasts and just finished reading BTs book, Rental Property Investing. Currently with DGs book , BRRRR and can't wait to start JSs, Estimating Rehab Costs . Turned Pro today after attending my first webinar with Brandon , " How to buy your first, second, or third rental property". So far , I've learned a ton of valuable information here in BP !

I'm still in the stage of sharpening my axe by reading books , listening podcasts and attending webinars , but leaning towards doing a BRRRR strategy outside CA in due time. I don't have much to offer (knowledge wise) regarding REI at this point but you can ask me if you need any opinion regarding Emergency Nursing=) So excited to be part of this community! Looking forward to learn more and connect with most of you.

Your Friend,

Armel

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Brian Garlington

Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes

7y

You are ahead of most new people on the platform sir. So many set up a profile and don’t include any kind of picture and all they say is,

“Hi, I’m new, I’m excited and want to start. I haven’t read any books, been on webinars or listened to any podcasts because we’re all busy , right? Anywho .....I’d like someone to give me a brief rundown of .......”

I used to be stationed in Concord and I have a rental there so I'm familiar with your area. What is it that makes you want to BRRRR?

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Jeremy TaggartBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 645 votes
7y
@Armel Bayot Great job on starting to educate yourself prior to getting started. I would say give yourself at least 6 solid months of education time before diving in. It's important that you have a firm grasp on everything before committing capital so you can limit mistakes. Also you'll want to spend at least a few months getting used to the particular market you are thinking about investing in so you can start to become an expert on the different areas and price points that are achievable. This will help you know what actually is a good deal. Make sure you carefully vet and get a solid team on the ground in that city too as they'll make or break your success there.
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Armel BayotPro Member
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Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
@Jeremy Taggart Thanks! I concur.Just soaking myself with information ,saving $$$ for capital and been practicing in BP calculator. Learned so far that Midwest area has been a great spot for investing for the past few years but getting hard to find a good deal lately. Targeting early 2020 to dive in.
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Account Closed
Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
7y
@Armel Bayot so glad you didn't buy that 20k program!
20k is a downpayment on a 100k duplex that rents for 1500 in a C+ neighborhood in quite a range of out of state markets. Better to spend it on property than on knowledge that can be attained for free.
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Bill HamptonBusiness Member
Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
7y
@Armel Bayot, welcome to Bigger Pockets. Good luck on your real estate journey.
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Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
@Elliott Elkhoury $20k is a good chunk of money especially for a newbie like me. Glad too I didn’t pull the trigger . The information I’ve learned here in BP is already worth $20k and it’s FREE.
I see you’re in Sacramento. Actually thought about maybe getting a duplex in the Carmichael/ Arden area since Bay Area is so expensive, just to get my feet wet before venturing out of state but not sure if that’ll be a good move.
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Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
@Bill Hampton Thank you brother!
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Account Closed
Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
7y
@Armel Bayot I'm actually very very familiar with the carmichael/arden area.
You may be able to swing a smaller SFR for 350k that rents for 1800/mo, maybe a tiny bit less. Those numbers don't really work out. I think one thing investors who live in pricey markets have to be careful of is seeing everything through a relative lens. Everything seems like a good deal when you live in the bay, but not everything thats cheaper is really a good deal.
Honestly, if you told me you were about to buy a 150,000.00 house that rents for 1500 I would still say to stay far away from it.
In doing over 100 out of state rental deals in the past year an a half, I would say I've observed these price ranges to potentially work for property in good condition, provided you're in a solid working class area with strong rental demand:

- SFR's between 50k-75k
-Duplexes between 90k-120k
-Triplexes Between 135-160k
etc...

Of course, these are just rules of thumb... but I've literally never seen a 10-cap or higher on a property that is sold above the price ranges mentioned here.

Hope these help! I have a bunch of other observations. I even made a youtube video or two (that I don't know if I'm allowed to share on BP forums for "promoting" purposes) on this topic. Let me know if you have more questions!
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Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
@Elliott Elkhoury Super helpful! Out of state investing would really make more sense and get the best bang for my buck . I’ll connect to you one of these days and learn more about your strategies.
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Brian Garlington
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
7y
@Armel Bayot
You are ahead of most new people on the platform sir. So many set up a profile and don’t include any kind of picture and all they say is,
“Hi, I’m new, I’m excited and want to start. I haven’t read any books, been on webinars or listened to any podcasts because we’re all busy , right? Anywho .....I’d like someone to give me a brief rundown of .......”
I used to be stationed in Concord and I have a rental there so I'm familiar with your area. What is it that makes you want to BRRRR?
1 Reply
Craig Castro
Homeowner · Manteca, CA · Member since 2019 · 21 posts · 21 votes
7y
Originally posted by @Brian Garlington:
@Armel Bayot
You are ahead of most new people on the platform sir. So many set up a profile and don’t include any kind of picture and all they say is,
“Hi, I’m new, I’m excited and want to start. I haven’t read any books, been on webinars or listened to any podcasts because we’re all busy , right? Anywho .....I’d like someone to give me a brief rundown of .......”
I used to be stationed in Concord and I have a rental there so I'm familiar with your area. What is it that makes you want to BRRRR?

I take offense to that statement. I haven't uploaded a photo because I'm ugly; not because I'm lazy. All joking aside, welcome aboard @Armel Bayot. I'm very much in your shoes (doing the reading phase right now) and am also looking at potential Midwest properties. I haven't quite found what area I want to focus on yet, but if you ever want to throw ideas back and forth I'd be willing to listen and share my thoughts.

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Kevin Young
Rental Property Investor · California, CA · Member since 2019 · 15 posts · 5 votes
7y
@Elliott Elkhoury Hey What Will I Need To Get A Loan And Invest Out Of State If I’m From California?
1 Reply
Joel Fine
Rental Property Investor · Leander, TX · Member since 2018 · 183 posts · 264 votes
7y
Welcome to the site! Sounds like you are off to a great start on your education. I too am a real estate investor living in the SF Bay Area. I'm about a year ahead of you on the journey. I went out of state right from the get-go - nothing here cash flows and I don't want to count on appreciation. Keep us posted as you progress!
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Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
@Brian Garlington Appreciate it brother!
Did you mention you have a rental property in Concord?
BRRRR because it's the strategy that seems a lot of successful investors have used based on the podcasts I've listened . I just want to model them and hopeful also build a portfolio in the next few years . I'm also currently reading Mr Greene's book . We'll see, whatever will fit me and whatever it takes . I'm open to other strategies which I'm sure others have successfully used.
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Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
@Craig Castro Thanks Brother!
Upload your photo and we’ll be the judge .lol
I heard a lot of good things investing in Midwest but I also heard that there are a lot of seasoned shark investors there nowadays which makes it harder for the newbies to find a good deal. Do we still have a chance?
I’m open to brainstorming @ Craig Castro. I’ll definitely be in touch .
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Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
@Joel Fine Thanks!
I think real estate investing in general is a different animal, compared to just purchasing your home. I've been in the medical field for years and have Zero knowledge in REI. I'd like to dive in right away but there's that FEAR, mainly because I don't have enough tools yet so I guess I need to be patient investing in myself first and develop the right skills knowledge, and attitude , so as to also minimize risks / mistakes.
I’d love to hear how you pulled the trigger on your first deal . Was it nerve racking ?
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Joel Fine
Rental Property Investor · Leander, TX · Member since 2018 · 183 posts · 264 votes
7y
Originally posted by @Armel Bayot:
@Joel Fine Thanks!
I think real estate investing in general is a different animal, compared to just purchasing your home. I've been in the medical field for years and have Zero knowledge in REI. I'd like to dive in right away but there's that FEAR, mainly because I don't have enough tools yet so I guess I need to be patient investing in myself first and develop the right skills knowledge, and attitude , so as to also minimize risks / mistakes.
I’d love to hear how you pulled the trigger on your first deal . Was it nerve racking ?

Nerve racking? Maybe a little. But the prices are so much smaller than they are in the Bay Area. My first deal was a SFR in Round Rock, Texas, a little more than a year ago. It didn't need much work. It's in a B+ neighborhood, not far from Apple, Dell, etc. Cash flow isn't great but it has some decent appreciation potential. I figured that in the worst case I would sell it later at a small loss - after all, it's a nice house, and people always need a place to live.
At the time I wasn't intending to buy more properties. Then I found Bigger Pockets, watched a couple of Brandon Turner webinars...and I was hooked. :)

1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Armel Bayot:
Hello BP community,
I work as an ER Nurse and got bit by the real estate bug early this year after getting my property in the Bay Area. Attended a couple of seminars about real estate investing and almost bought a $20k advance education from a seasoned investor. Thank God another attendee from the seminar enlightened and referred me to BiggerPockets instead.
Its almost 1.5 months since I've been listening to BP Podcasts and just finished reading BTs book, Rental Property Investing. Currently with DGs book , BRRRR and can't wait to start JSs, Estimating Rehab Costs . Turned Pro today after attending my first webinar with Brandon , " How to buy your first, second, or third rental property". So far , I've learned a ton of valuable information here in BP !
I'm still in the stage of sharpening my axe by reading books , listening podcasts and attending webinars , but leaning towards doing a BRRRR strategy outside CA in due time. I don't have much to offer (knowledge wise) regarding REI at this point but you can ask me if you need any opinion regarding Emergency Nursing=) So excited to be part of this community! Looking forward to learn more and connect with most of you.
Your Friend,
Armel
Welcome aboard Armel.

0 Reply
Blake Edwards
Real Estate Agent · Brentwood, CA · Member since 2018 · 285 posts · 225 votes
7y
@Armel Bayot - Welcome! There's a lot of great info here as well as people! It's always great to hear when people from my neck of the woods (The SF Bay Area) become interested in REI. We (The @David Greene Team) hold meetups pretty regularly which can be found on the events page. Lots of knowledge out there to be had for free, as well as people who are more than willing to share lessons learned in their journey!
0 Reply
Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
Originally posted by @Joel Fine:
Originally posted by @Armel Bayot:
@Joel Fine Thanks!
I think real estate investing in general is a different animal, compared to just purchasing your home. I've been in the medical field for years and have Zero knowledge in REI. I'd like to dive in right away but there's that FEAR, mainly because I don't have enough tools yet so I guess I need to be patient investing in myself first and develop the right skills knowledge, and attitude , so as to also minimize risks / mistakes.
I’d love to hear how you pulled the trigger on your first deal . Was it nerve racking ?

Nerve racking? Maybe a little. But the prices are so much smaller than they are in the Bay Area. My first deal was a SFR in Round Rock, Texas, a little more than a year ago. It didn't need much work. It's in a B+ neighborhood, not far from Apple, Dell, etc. Cash flow isn't great but it has some decent appreciation potential. I figured that in the worst case I would sell it later at a small loss - after all, it's a nice house, and people always need a place to live.
At the time I wasn't intending to buy more properties. Then I found Bigger Pockets, watched a couple of Brandon Turner webinars...and I was hooked. :)

I still have the Bay Area Price mindset and thinking it'll be half a million property. That sounds like a great area being close to this big companies. Texas is also in my radar together with maybe Nevada, Arizona, Memphis, Georgia or Indiana. Was that first deal a turn key? Thinking about starting with that to get my feet wet and if BRRRR strategy will be too challenging for a newbie especially finding what Mr Greene call the Core 4.
I'm already hooked even before my first deal :)
0 Reply
Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
Originally posted by @James Wise:
Originally posted by @Armel Bayot:
Hello BP community,
I work as an ER Nurse and got bit by the real estate bug early this year after getting my property in the Bay Area. Attended a couple of seminars about real estate investing and almost bought a $20k advance education from a seasoned investor. Thank God another attendee from the seminar enlightened and referred me to BiggerPockets instead.
Its almost 1.5 months since I've been listening to BP Podcasts and just finished reading BTs book, Rental Property Investing. Currently with DGs book , BRRRR and can't wait to start JSs, Estimating Rehab Costs . Turned Pro today after attending my first webinar with Brandon , " How to buy your first, second, or third rental property". So far , I've learned a ton of valuable information here in BP !
I'm still in the stage of sharpening my axe by reading books , listening podcasts and attending webinars , but leaning towards doing a BRRRR strategy outside CA in due time. I don't have much to offer (knowledge wise) regarding REI at this point but you can ask me if you need any opinion regarding Emergency Nursing=) So excited to be part of this community! Looking forward to learn more and connect with most of you.
Your Friend,
Armel
Welcome aboard Armel.

Thank you brother!

0 Reply
Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
Originally posted by @Blake Edwards:
@Armel Bayot - Welcome! There's a lot of great info here as well as people! It's always great to hear when people from my neck of the woods (The SF Bay Area) become interested in REI. We (The @David Greene Team) hold meetups pretty regularly which can be found on the events page. Lots of knowledge out there to be had for free, as well as people who are more than willing to share lessons learned in their journey!

Thank you sir! I was wondering if Mr Greene has a team here in the Bay area since I heard he's from SF (?) . Currently reading his book BRRRR and leaning towards that strategy. That's good to know and will be checking the meet up schedule. Do I need to sign up for that ?
0 Reply
Blake Edwards
Real Estate Agent · Brentwood, CA · Member since 2018 · 285 posts · 225 votes
7y
Hey @Armel Bayot Shoot me a PM and lets chat. But short answer, yes. We are based in Brentwood and work all over the San Francisco Bay Area.
0 Reply
Craig Castro
Homeowner · Manteca, CA · Member since 2019 · 21 posts · 21 votes
7y
Originally posted by @Blake Edwards:
Hey @Armel Bayot Shoot me a PM and lets chat. But short answer, yes. We are based in Brentwood and work all over the San Francisco Bay Area.

@Blake Edwards Thanks for the request. I'm actually reading the Long Distance Investing book right now by Mr. Greene and as I've been reading it I knew he was somewhat local to me and thought how cool it would be to actually have a chance to work with him or someone on his team. I'd absolutely love to attend one of your future meetings. I do have a question about HUD homes. When looking at HUD homes, it says you need to go through a HUD-approved agent to submit a bid. If I were looking out of state, would I need a HUD-approved agent from that specific area out of state or could I use a local one to submit on my behalf? Another book I read (by J Scott) mentioned that he started out with HUD homes in the beginning so I've looked a little in that area but the whole "needing a HUD approved agent" thing has stopped me in my tracks for now. I'm still reading and learning, but I know if I do decide to go that route that'll be something I'll need to figure out.
@Armel Bayot Is there a specific area you're looking for in the mid-West? I've looked at Texas, but the one thing that scares me about Texas is the high property taxes. It seems more flip-friendly than rent friendly unless you secure a home at a great price. TX property taxes are almost 3x as high as ours here in CA.

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Armel BayotPro Member
OP
Rental Property Investor · Walnut Creek, CA · Member since 2019 · 116 posts · 38 votes
7y
Originally posted by @Craig Castro:
Originally posted by @Blake Edwards:
Hey @Armel Bayot Shoot me a PM and lets chat. But short answer, yes. We are based in Brentwood and work all over the San Francisco Bay Area.

@Blake Edwards Thanks for the request. I'm actually reading the Long Distance Investing book right now by Mr. Greene and as I've been reading it I knew he was somewhat local to me and thought how cool it would be to actually have a chance to work with him or someone on his team. I'd absolutely love to attend one of your future meetings. I do have a question about HUD homes. When looking at HUD homes, it says you need to go through a HUD-approved agent to submit a bid. If I were looking out of state, would I need a HUD-approved agent from that specific area out of state or could I use a local one to submit on my behalf? Another book I read (by J Scott) mentioned that he started out with HUD homes in the beginning so I've looked a little in that area but the whole "needing a HUD approved agent" thing has stopped me in my tracks for now. I'm still reading and learning, but I know if I do decide to go that route that'll be something I'll need to figure out.
@Armel Bayot Is there a specific area you're looking for in the mid-West? I've looked at Texas, but the one thing that scares me about Texas is the high property taxes. It seems more flip-friendly than rent friendly unless you secure a home at a great price. TX property taxes are almost 3x as high as ours here in CA.

I haven't dug deep yet to the Midwest states, so no particular one . I've looked at the Indiana properties for the purpose of practice calculation / analyzing a deal and was actually surprised how much are the properties there compared to CA.
Wow, didn't know TX property tax is like that.

0 Reply
Craig Castro
Homeowner · Manteca, CA · Member since 2019 · 21 posts · 21 votes
7y
Originally posted by @Armel Bayot:
Originally posted by @Craig Castro:
Originally posted by @Blake Edwards:
Hey @Armel Bayot Shoot me a PM and lets chat. But short answer, yes. We are based in Brentwood and work all over the San Francisco Bay Area.

@Blake Edwards Thanks for the request. I'm actually reading the Long Distance Investing book right now by Mr. Greene and as I've been reading it I knew he was somewhat local to me and thought how cool it would be to actually have a chance to work with him or someone on his team. I'd absolutely love to attend one of your future meetings. I do have a question about HUD homes. When looking at HUD homes, it says you need to go through a HUD-approved agent to submit a bid. If I were looking out of state, would I need a HUD-approved agent from that specific area out of state or could I use a local one to submit on my behalf? Another book I read (by J Scott) mentioned that he started out with HUD homes in the beginning so I've looked a little in that area but the whole "needing a HUD approved agent" thing has stopped me in my tracks for now. I'm still reading and learning, but I know if I do decide to go that route that'll be something I'll need to figure out.
@Armel Bayot Is there a specific area you're looking for in the mid-West? I've looked at Texas, but the one thing that scares me about Texas is the high property taxes. It seems more flip-friendly than rent friendly unless you secure a home at a great price. TX property taxes are almost 3x as high as ours here in CA.

I haven't dug deep yet to the Midwest states, so no particular one . I've looked at the Indiana properties for the purpose of practice calculation / analyzing a deal and was actually surprised how much are the properties there compared to CA.
Wow, didn't know TX property tax is like that.

One helpful site I've come across is called Smart Asset and they have a property tax calculator that will help estimate property taxes. Zillow is also good because I believe they use actual historical numbers for the specific property you're looking for. I did a little research in Indiana as well due to their low prices. One city I looked at was Gary, IN. Originally it seemed good because I found some homes that could cash flow well, but I noticed their overall population has been declining over the past decade. That worries me a bit when it comes to thinking about potential vacancies. Ideally, I think the place I want to choose will have moderate growth in population as well as a strong labor market. I didn't see any major employers in Gary, IN although Chicago is about an hour away.

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