Complete Real Estate Newbie from San Diego, California

Complete Real Estate Newbie from San Diego, California

Member since 2021 · 14 posts · 8 votes

Hi, my name is Andy. I'm 26 and I'm from San Diego, California and I'm completely new to the whole real estate game. I've really only watched/listened to videos and read things online about real estate over the past couple months and eventually stumbled across the BetterPockets Youtube channel and website. I'm generally pretty averse to randomly signing up for new things but after listening and reading for a bit, I determined this community seems well worth it!

I am currently a software engineer and I've been at my current job for about 3 years. While it is a very good job, I am looking to expand my sources of income and long-term would like to be able to even live off more passive sources of income if I wanted to.

In the short-term at least, I'm looking to get into investing in real estate at all and, if all goes well of course, start generating just a little bit of extra money on the side. I'm fully aware it is going to be a lot of hard work, but real estate is also something I'm genuinely interested in even outside the potential monetary gains. From the information I've gathered so far, I'd likely be interested in single-family homes to start. And for a variety of reasons (California prices being only one of them), I'd be most interested in long-distance real estate investing. However, I'm definitely not set on anything yet seeing how new I am to this.

It should also be noted that my plan is to move to the Austin, Texas area in roughly 2 years. California prices are again only one of the reasons for the likely move. After living for roughly a year there, I'd be looking at buying a house (and likely house hacking in some way) though that is, at earliest, about 3 years away still. All that to say that I'd still like to get started investing in real estate before that time comes.

As far as my current financial situation goes, I bring home a decent wage even after taxes and the like and have quite a bit saved up. My savings currently are mainly for putting a big down payment on my future house, though I'll definitely have some left over to put into investing. I actually currently live with my parents still but pay them rent each month, though it is far less than if I were living on my own. I don't currently have any debts and the word "debt" admittedly tends to scare me, even though I know not all debt is inherently bad. For that reason, I'm really intrigued by how people can invest in real estate without putting too much of their own money down and isn't something I understand very much still.

Hopefully this wasn't too long-winded and is a decent introduction. I'm very much looking forward to learning more about real estate and I feel joining the BiggerPockets community will be a big step towards that learning process!

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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
5y

@Andrew Rogers welcome to BP! Sounds like you're in a great position to start investing. I started by househacking a duplex and putting 3.5% down. After owning that duplex for a few years I did a 1031 into 12 units along with some other cash I had saved up. Really househacking has been the best low down payment option I've easily found. We just bought a house for $700 down but that will end up being about $15,000 all in and that took me four years of credibility and connections to find a deal like that. I also bought a duplex for $0 down this year using my commission as an agent to buy a 3.5% down duplex here in East Austin. So yea, I've picked up a few million worth over the years and started with under $10,000.

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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    5y

    @Andrew Rogers welcome to BP! Sounds like you're in a great position to start investing. I started by househacking a duplex and putting 3.5% down. After owning that duplex for a few years I did a 1031 into 12 units along with some other cash I had saved up. Really househacking has been the best low down payment option I've easily found. We just bought a house for $700 down but that will end up being about $15,000 all in and that took me four years of credibility and connections to find a deal like that. I also bought a duplex for $0 down this year using my commission as an agent to buy a 3.5% down duplex here in East Austin. So yea, I've picked up a few million worth over the years and started with under $10,000.

  • Member since 2021 · 14 posts · 8 votes
    5y
    Originally posted by @Jordan Moorhead:

    @Andrew Rogers welcome to BP! Sounds like you're in a great position to start investing. I started by househacking a duplex and putting 3.5% down. After owning that duplex for a few years I did a 1031 into 12 units along with some other cash I had saved up. Really househacking has been the best low down payment option I've easily found. We just bought a house for $700 down but that will end up being about $15,000 all in and that took me four years of credibility and connections to find a deal like that. I also bought a duplex for $0 down this year using my commission as an agent to buy a 3.5% down duplex here in East Austin. So yea, I've picked up a few million worth over the years and started with under $10,000.

    Wow that sounds great! I'll definitely have to look more into the options I'll have for house hacking. I've looked a bit into the Austin area already just through sites like Zillow just to see what's out there at the moment and, without even going too deep on anything in particular, there's some things that caught my eye. Hopefully I can start looking into things deeper soon and congrats on all those deals you've done so far!

  • Realtor · Portland, OR · Member since 2017 · 357 posts · 259 votes
    5y

    @Andrew Rogers one of the best people to reach out to about your strategy and plan would be @Diego Corzo. He helps a lot of people strategize on how to achieve financial independence and he's also in the Austin market!

  • Realtor · Austin, TX · Member since 2020 · 53 posts · 27 votes
    5y

    @Andrew Rogers

    Welcome to real estate investing! I hear about so many people who are saving up for large down payments and who are afraid of debt. I used to think the same way, but real estate has completely changed my strategy. Many economists are predicting higher inflation in the years to come, so it’s important to make sure your $$ is growing as prices inflate. Real estate is a great way to protect and grow your money. With inflation, rents go up, the value of your asset goes up, but your principal and interest payments are fixed — essentially your debt is eroded. Not to mention the tax benefits of real estate investing ... Point is: the longer you’re in the market, generally the better off you are, and you shouldn’t be afraid of financing your deals. Hope that helps ease some of your debt fears. Good luck!!

  • Member since 2021 · 14 posts · 8 votes
    5y
    Originally posted by @Chace Fraser:

    @Andrew Rogers one of the best people to reach out to about your strategy and plan would be @Diego Corzo. He helps a lot of people strategize on how to achieve financial independence and he's also in the Austin market!

    thanks you for the recommendation! I could definitely use all the help I can get!

  • Member since 2021 · 14 posts · 8 votes
    5y
    Originally posted by @Lynn Wise:

    @Andrew Rogers

    Welcome to real estate investing! I hear about so many people who are saving up for large down payments and who are afraid of debt. I used to think the same way, but real estate has completely changed my strategy. Many economists are predicting higher inflation in the years to come, so it’s important to make sure your $$ is growing as prices inflate. Real estate is a great way to protect and grow your money. With inflation, rents go up, the value of your asset goes up, but your principal and interest payments are fixed — essentially your debt is eroded. Not to mention the tax benefits of real estate investing ... Point is: the longer you’re in the market, generally the better off you are, and you shouldn’t be afraid of financing your deals. Hope that helps ease some of your debt fears. Good luck!!

    At this point, I do definitely fear inflation just as much if not more than debt, especially with how much money is being printed these days. Debt fear is just a hurdle I have to overcome. And all the financial information I've been consuming in the past year or so has definitely made me realize "wow I could've started years ago and been even better off!" and I already have no complaints about my current situation! But hey, hindsight is 20/20, so I figure it's better to start now (in real estate) than never start at all. Thank you for your insight!

  • Chad RockeBusiness Member
    Real Estate Agent · Denver, CO · Member since 2021 · 383 posts · 181 votes
    5y


    Hey @Andrew Rogers!

    Welcome to BiggerPockets! You have hit the JACKPOT of resources for real estate investors. You can literally find answers to all of your questions within the confines of this site. What’s the best way to get started using BiggerPockets?

    1.Subscribe to the BiggerPockets Money and Rookie Podcasts

    2.Attend the FREE WEBINARS

    3.Attend a Meetup in Your Area / virtual meet ups

    4.Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

    5.Peruse the forums! Ask questions! Answer Questions! If you are consistent with learning real estate over the next 4-6 months, you’ll be ready to purchase your first (or next) property in NO TIME!

    Good luck,

    Chad

  • Member since 2021 · 14 posts · 8 votes
    5y
    Originally posted by @Chad Rocke:


    Hey @Andrew Rogers!

    Welcome to BiggerPockets! You have hit the JACKPOT of resources for real estate investors. You can literally find answers to all of your questions within the confines of this site. What’s the best way to get started using BiggerPockets?

    1.Subscribe to the BiggerPockets Money and Rookie Podcasts

    2.Attend the FREE WEBINARS

    3.Attend a Meetup in Your Area / virtual meet ups

    4.Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

    5.Peruse the forums! Ask questions! Answer Questions! If you are consistent with learning real estate over the next 4-6 months, you’ll be ready to purchase your first (or next) property in NO TIME!

    Good luck,

    Chad

    I was definitely very pleasently surprised to find basically a "one stop shop" resource in BiggerPockets. It's makes things so much easier than having to consolidate from too many resources. And thanks for the welcome! 

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    5y

    @Andrew Rogers

    Welcome to the BP community! Great that you joined the site!

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

    Best of luck!

  • Member since 2021 · 14 posts · 8 votes
    5y
    Originally posted by @Dmitriy Fomichenko:

    @Andrew Rogers

    Welcome to the BP community! Great that you joined the site!

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

    Best of luck!

    I'll definitely look more into that and thank you! 

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