New to Real Estate · Perris, CA · Member since 2020 · 32 posts · 18 votes
I'm a new investor and have no idea how to get started. I've been dreaming of real estate investing for years but was always told by family that real estate investing isn't a good idea, I'll lose money, and it's not worth it. Fast forward years later, I still want to do it and heard of bigger pockets, I feel from BP I can get the support/knowledge I need to succeed and achieve passive income. I do want to start with the BRRR method or be a partner with someone interested in flipping homes. I live in Riverside, CA and don't know if it's ok to do BRRR outside of the state especially because I am new to investing. Where should I start? Please help.
Rental Property Investor · Murrieta, CA · Member since 2020 · 338 posts · 343 votes
5y
@Rachel Santos Hey Rachel, Do you currently own a home? If you do not you can buy a multifamily (2-4 units) in Riverside that will get you into the game and try to minimize your rent. During this time you can save money, let the property appreciate and plan your next move. I got my start buying a duplex in Riverside by the Food4Less off Van Buren. 4years later I was able to transfer that property into an 8 unit. Good luck! Ignore those that say you can not do it.
Real Estate Agent · Phoenix, AZ · Member since 2018 · 127 posts · 62 votes
5y
@Rachel Santos
Hey Rachel I would also suggest a house hack that can get your feet wet then you could definitely move to out of state investing being in CA a lot of people I work with are in CA and you couldn’t look into AZ or NV depending on weather you want cash flow or appreciation that’s what I would suggest but you’re definitely on the right path! I’m a state away (AZ) so let me know if you need anything.
New to Real Estate · Perris, CA · Member since 2020 · 32 posts · 18 votes
5y
Hi Nick, thanks for the quick response. Me and my husband recently sold our home and made a decent amount of money from equity that we want to use for real estate investment. I don't see too many duplex areas in riverside right now, or not any that I want to live in lol, which is why I was considering BRRR or flipping. Have you done any investments out of state?
Rental Property Investor · Murrieta, CA · Member since 2020 · 338 posts · 343 votes
5y
@Rachel Santos
Yes!! That 8-unit I bought was in PHX,AZ. I also have a 4-plex in Huntsville, AL. I love phx. I feel like it’s a good mix of appreciation of CA and the cash flow of the Midwest. Tx and FL have great markets too. Haven’t invested in them yet but see some good deals just don’t have the Capital right now.
Oh wow! That's inspiring to hear. How is the 8 unit in AZ? How did you start the process of looking at units and purchasing out of state and let alone getting tenants?
Rental Property Investor · Murrieta, CA · Member since 2020 · 338 posts · 343 votes
5y
@Rachel Santos Its going great. It was a little rough at the beginning with some evictions and some work I did on it. I fortunately did not have to pay for these things out of pocket because of the amount of units, which is the reason why I decided to go with more units. After looking and underwriting a lot of deals to me it makes more sense to buy properties with a higher unit count. I know for me I really want to get in the 16+ unit range so I am working towards that goal right now. Since I know I wanted to go with more units I looked at sites like loopnet and started calling agents. Most of them did not take me to seriously since I had never closed on a commercial property before. Just be consistent and try to find an agent that does a lot of volume in the area. If you are staying 4units and under you can contact real estate agents on BP. Where are your husband and you looking? I have a property management company for my out of state properties.
That sounds great and makes me want to consider more units too! Just don't know if I'll be able to take on something like that as a new investor. We're pretty much interested in anywhere we can find a good team for support and have the most success with appreciation and passive income.
I would suggest finding someone to work with and offer to help them for free and learn from them. See how they do deals and help them in whatever capacity they need. Tell them you want to invest but want to learn about investing. If you do this with the right person they will take free help in exchange for learning what they do. This offers them immediate value and offers you long term value.
Hey David. That's a great idea! I'll definitely have to find a way to find someone who does that type of work, I'm more than willing to volunteer help in exchange for long term knowledge.