New aspiring investor from the Bay Area

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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

@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?

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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 @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.

    Super helpful information ! Its kinda hard to pick a spot  to invest especially if you've never been to that state, but   I guess  numbers is what really matters when investing.

    0Reply
  • Joel Fine
    Rental Property Investor · Leander, TX · Member since 2018 · 183 posts · 264 votes
    7y
    Originally posted by @Armel Bayot:
    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 :)

    You can see more about my first deal here. (It's in my profile if the link doesn't work.) 

    After that first deal I decided to go for cash flow rather than appreciation. I've been buying in Cleveland ever since. I picked up about a dozen small multi-family properties, ranging from duplex to 7 units. In Cleveland you can get a duplex in a "C" neighborhood for $75-100k that rents for $750 a side. If you are interested I can connect you with some folks out there, send me a PM.

    I'm aiming for larger multi-family next.

    Joel

    0Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    7y

    @Kevin Young


    All you need is a steady income to qualify for the loan, 20k for a downpayment on a 100k duplex, and a good property manager! I'll DM you with some more details :)

    0Reply
  • 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:
    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 :)

    You can see more about my first deal here. (It's in my profile if the link doesn't work.) 

    After that first deal I decided to go for cash flow rather than appreciation. I've been buying in Cleveland ever since. I picked up about a dozen small multi-family properties, ranging from duplex to 7 units. In Cleveland you can get a duplex in a "C" neighborhood for $75-100k that rents for $750 a side. If you are interested I can connect you with some folks out there, send me a PM.

    I'm aiming for larger multi-family next.

    Joel

     You've done quite well in your portfolio just within a year  of your journey! That's awesome!

    I'm sure you'll acquire a larger multi family soon. I guess once you get started , get to know the in and outs of REI, you'll have the confidence and momentum to get more.

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