New girl from Sacramento, CA

New girl from Sacramento, CA

Real Estate Investor · Miamisburg, OH · Member since 2012 · 18 posts · 3 votes

Hello, all!

I have been a lurker on these forums for far too long now, so I figured it was time to sign up and become an active participant!

I have two investment properties in the Sacramento area, and am in escrow on my first property in Kansas City. Ultimately, my goal is to leave California, so I don't want to get too tied up in properties here for tax reasons.

I am certainly a newbie, and just getting my feet wet in the investment world. After spending hours reading these forums, I am so grateful for the knowledge and wisdom that others, who are far more knowledgeable, have shared with all of us "new kids".

As a beginner, my greatest challenge is financing. My first property was purchased when money was easy, the second was a primary residence, and the third was bought with cash. Now, if I'm going to continue to grow my investments, I will have to start using other people's money! I know that is the way to go, but it can be difficult to get started. Time for me to head over to the finance section and start reading some more!

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Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
13y

Come'on folks, let's stop bashing the Golden State. Ya'll need some beach. Wealth can be created - it's not limited. The Earth has not received all the sunshine it will ever get. There is still hope.

Consider putting on your entrepreneurial thinking caps. Isolate what you see are California's biggest problems and build a business around fixing them. Believe it or not, every state has its issues.

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  • Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
    13y

    Hi Krystal Baker,

    Welcome to BiggerPockets!

    Financing is the key if you want to build your real estate investment portfolio quickly. It's also one of the greatest benefits to real estate investing.

    Jump into the forums and ask any questions you have.

    Continued success!

  • Real Estate Investor · Miamisburg, OH · Member since 2012 · 18 posts · 3 votes
    13y

    Marco Santarelli - thanks for the reply! I look forward to asking many financing questions in the coming weeks :)

  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    13y

    Welcome to Bigger Pockets Krystal!

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Hey Krystal Baker thanks for jumping in and introducing yourself! You'll find that the more you interact, the more you'll get out!

    Here's a couple articles that might help:

    http://www.biggerpockets.com/renewsblog/2012/06/03/strategy-when-the-bank-says-no/

    How to Invest in Real Estate with No Money

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    13y

    Hey Krystal Baker Sacto Sister! Glad you de-cloaked yourself. You don't sound like a newbie - just a conservative investor. Nice moves you've made. You might want to read up on 1031 exchanges.

  • Real Estate Investor · Miamisburg, OH · Member since 2012 · 18 posts · 3 votes
    13y

    Brandon Turner - thanks for the great articles! Jumping into the financing world is nerve-racking, but the good advice helps, and I love reading the comments on these articles from people who have actually done it! Hey, if they can make it work, I can too!

    Al Williamson - compared to some of the Rock Stars on this forum, I'm definitely still a newbie! :) Thanks for the welcome, and I will certainly read up on 1031's.

  • Investor · Sacramento County, CA · Member since 2013 · 104 posts · 20 votes
    13y

    Hey Krystal and nice to hear another success story out of our local area.

    I noticed you said you have been a lurker on the forums for awhile now - have you attended any of the local REIA meetings?

    Look forward to networking with you and hearing some of your local sucesses!!

  • Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    13y

    Financing is not hard. You can use conventional loans for up to 10 mortgages. You have to watch the DTI ratio though.

  • Real Estate Investor · Miamisburg, OH · Member since 2012 · 18 posts · 3 votes
    13y

    Sean Moen - thanks for the reply! I have not attended any of the local REIA meetings yet, but I guess I should! I will definitely look into it.

  • Real Estate Investor · Squaw Valley, CA · Member since 2012 · 101 posts · 17 votes
    13y

    Welcome Krystal, you have for sure found a great place to be here on BP!!!! It's not uncommon to hear about a fellow Cali native wanting out!!! Where about are you looking at moving to? Sounds like you are off to a great start with your investment property already, best of luck to your continued success!!!

  • Real Estate Investor · Miamisburg, OH · Member since 2012 · 18 posts · 3 votes
    13y

    Hello, Sabrina Laplante! I would like to end up in either Montana or Idaho - I absolutely love the weather here, but is just getting too crowded and expensive. It doesn't seem worth it, but we'll see how I feel after my first Montana blizzard :) Hey, maybe I just need to get out of the valley, and move up to your neck of the woods!

  • Investor · Wichita Falls, TX · Member since 2010 · 3k+ posts · 603 votes
    13y

    Hi fellow Californian, welcome to the site!

  • Real Estate Investor · Squaw Valley, CA · Member since 2012 · 101 posts · 17 votes
    13y

    My "neck of the woods" is only like an hour east of Fresno. No good here either!!! California in general is getting worse and worse every day! My family and I are planning on relocating to AZ in the next year or so, and I am anxious to be out of here! My sister and brother n law have considered going to Montana or Idaho; we have a few friends that have moved to Idaho. It seems as though that is a cool place as well :)

  • Real Estate Investor · Miamisburg, OH · Member since 2012 · 18 posts · 3 votes
    13y

    Ha! Sabrina, your location tag said Squaw Valley - I thought you were living the good life on the slopes!

    Good luck on getting out! Originally, I had planned on buying and holding rental properties in CA, but then realized that I would have to forever file CA income tax returns. That was when I decided I needed an alternate strategy!

    I have heard that AZ is very nice - It is definitely on my list of places to check out before we pick a final "home state". There are a lot of good, inexpensive, high-acreage properties out there, too. From what I understand, a lot of the cattle ranching has moved to the midwest, leaving large parcels of land ripe for the taking!

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    13y

    Come'on folks, let's stop bashing the Golden State. Ya'll need some beach. Wealth can be created - it's not limited. The Earth has not received all the sunshine it will ever get. There is still hope.

    Consider putting on your entrepreneurial thinking caps. Isolate what you see are California's biggest problems and build a business around fixing them. Believe it or not, every state has its issues.

  • Real Estate Lender · Miami, FL · Member since 2013 · 243 posts · 24 votes
    13y

    Welcome! Glad to have you!! Let me know if I can be of assistance in any way. (I am new to BP too- smile)

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    Oh, income taxes are FAR from the worst of your problems investing in CA :) The list is endless. I plan to stay here (LA/Venice) forever and I still won't buy here. The numbers just don't work.

    Not sure if it helps, but I've bought multiple properties using an investor partner, so I was no cash in. He put up the cash, I took the mortgage and did the work, we split the net 50/50. Infinite returns for me, easy investment for him. Of course I would say only do that with people you would trust completely, and even then get some legal paperwork, but it worked great. I still use that method in pursuing some bigger investments.

  • Lender · Woodland Hills, CA · Member since 2013 · 364 posts · 115 votes
    13y

    My Cali Brothers and Sisters. . .

    Beware of the drab snow covered, no sun for freekin' ever midwest.

    I, born and raised in the city of the Angels, spent the better part of my medical career spanning Kansas, to Minnesota, to South Dakota, to Wisconsin and gud lordy Nebraska.

    There is a thing called seasonal affective disorder, which I thot was for sissies. . .

    . . .and realized that I am a big sissy when it comes to cabin fever and bone chilling cccold, and everything is DEAD until spring!

    You WILL miss our paradise-like sun sun sun, even though there is no rush hour traffic.

    Booyah,

    Tevis

  • Real Estate Broker · Leawood, KS · Member since 2013 · 150 posts · 23 votes
    13y

    @Krystal congrats on your new investment property.....I live in the KC area, just curious what area is your new rental property?

    Good luck!

  • Investor · Rocklin, CA · Member since 2013 · 63 posts · 16 votes
    13y

    Hello Krystal,
    I am just starting out as well. It seems like you are doing the same thing I am doing...looking in other areas for opportunities! I am looking at Florida and Texas. How did you end up buying the property in Kansas? Did you use a turn key?

  • Real Estate Lender · Napa, CA · Member since 2012 · 27 posts · 4 votes
    13y

    Tevis Verrett I too have "done time" in Milwaukee and Chicago for about 13 years, I don't even like to see pictures of the snow any more, as far as living I would never leave sunny CA!!

  • Real Estate Investor · Miamisburg, OH · Member since 2012 · 18 posts · 3 votes
    13y

    Jared Adamson - It does look like we have the same plan! I ended up in Kansas first and foremost because the numbers look good, but also because I have family in the state, and am at least a little familiar with the area. Before my husband and I made the final decision to buy, we also went to Kansas City for a week, to get a better feel for the different neighborhoods and areas and make the appropriate connections with Realtors, property managers, etc. I do think Florida has some great opportunities, but we are buying in cash at this time, and most properties there are out of our league! Texas certainly has promise, too, and after we accumulate a few rentals in Kansas City, I do intend to look into Texas further. Our property is turn key, and already rented. You certainly give up some cash flow doing turn key as opposed to a fixer, but as an out-of-state investor with a regular day job, I just felt more comfortable doing it that way.

  • Involved In Real Estate · Milwaukee, WI · Member since 2009 · 124 posts · 7 votes
    13y
    Originally posted by Dejan N.:
    Tevis Verrett I too have "done time" in Milwaukee and Chicago for about 13 years, I don't even like to see pictures of the snow any more, as far as living I would never leave sunny CA!!

    It's funny you put it that way "done time"... sometimes thats just how it feels! Especially when you've lived here ALL YOUR LIFE :(

    Any recommendations on where to relocate to would be GREAT!!

  • Lender · Woodland Hills, CA · Member since 2013 · 364 posts · 115 votes
    13y
    Originally posted by Dejan N.:
    Tevis Verrett I too have "done time" in Milwaukee and Chicago for about 13 years, I don't even like to see pictures of the snow any more, as far as living I would never leave sunny CA!!

    My Cali Brother, I feel you, bigtime!

    Tevis

  • Bakersfield, CA · Member since 2013 · 184 posts · 19 votes
    13y

    Krystal Baker welcome to BP. Look forward to connecting with you.

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