Caleb Enters Real Estate

16 Replies

Hey BP!

I’m brand spanking new. I’ve been interested in real estate for a long time and never knew where to start. I like the idea of passive income. I work a full time professional job that I’m not intending to replace but I want to make my money work for me short and long term. Short term goal is to buy a rental property that cash flows. Medium term goal is to expand from there with a few more and make a decent income that I could survive on if I had to. Currently reading the ultimate beginners guide. I live in San Pedro, Los Angeles, CA. Excited to be here!

@Caleb Crockett

I would take the time to research and understand the type of real estate investing you have the most interest in. Once you have done this, try to contact those who have done that type of real estate investing successfully so you can proceed with an advantage versus just investing completely on your own with no guidance.

Best of luck and welcome!

Hey Caleb! Welcome to BP and the exciting world of real estate investing! This is a wonderful site to gain all the knowledge and really see other investors doing a lot of deals.  

It sounds like you have some good goals ahead of you.   I would consider looking into house-hacking, if possible.  It's a wonderful way to reduce your mortgage, while building equity in your primary residence.  You have a lot of great multi-family properties in the San Pedro area that could start you off on the right direction! You might not cashflow from it, but it could reduce your overall monthly spending, which in turn could be saved faster for another investment property. 

Best of luck on your journey and I definitely recommend reading all real estate related books, listen to all the podcasts and definitely network! Feel free to reach out if you have any questions!

Ryan 

Hi Caleb,

Welcome to BP.  Do you own your own property now?  If not, I would second the idea of trying to house hack.  I grew up and live in the L.A. area and it's a tough market for new home buyers unless you've got a lot of money.  My first property was a townhouse in Hawthorne, which at the time I unknowingly house hacked.  I bought a 3 BR and rented out 2 of the rooms to roommates.  If I only knew then what I know now.

Try to learn as much as you can while simultaneously taking small actions toward your goal.

That's a great goal, Caleb! Welcome to the community! There is a great group of members on here to connect with. Best of luck investing! 

Originally posted by @Caleb Crockett :

Hey BP!

I’m brand spanking new. I’ve been interested in real estate for a long time and never knew where to start. I like the idea of passive income. I work a full time professional job that I’m not intending to replace but I want to make my money work for me short and long term. Short term goal is to buy a rental property that cash flows. Medium term goal is to expand from there with a few more and make a decent income that I could survive on if I had to. Currently reading the ultimate beginners guide. I live in San Pedro, Los Angeles, CA. Excited to be here!

Caleb, great to have you!

Originally posted by @Caleb Crockett :

Hey BP!

I’m brand spanking new. I’ve been interested in real estate for a long time and never knew where to start. I like the idea of passive income. I work a full time professional job that I’m not intending to replace but I want to make my money work for me short and long term. Short term goal is to buy a rental property that cash flows. Medium term goal is to expand from there with a few more and make a decent income that I could survive on if I had to. Currently reading the ultimate beginners guide. I live in San Pedro, Los Angeles, CA. Excited to be here!

Congrats on getting into the game. I started a little over 3 years ago in Columbus, Ohio. I have replaced my previous W2 income with passive rental income.

Thanks for the responses everyone! I am renting currently. House hacking would be a viable option, or purchasing a 2-4 unit building. I think I can get a better cash flow in other markets for less. 

Yes.  It's extremely difficult, if not impossible to cash flow in many parts of California on 1 - 4 unit properties.  But if you are going to live in California and it's feasible for your lifestyle, house hacking for your personal residence can significantly decrease your living expenses.  Depending on how long you house hack, eventually it can cover your housing expenses.  Of course, you can then use the savings to invest in out-of-state properties.

We are BRRRR investors and have completed everything but the Repeat. We are a year into our first property in Indiana and are actively looking for our second property in Indiana or a few other markets. If you haven't read or listened to them yet, I'd highly recommend Brandon Turner's Rental Property Investing, and David Green's Buy, Rehab, Rent, Frefinance, Repeat and Long-Distance Real Estate Investing.  These were the 3 real estate books that brought it together and helped me finalize my strategy.  I'm actually listening to them again right now as a refresher.

Hopefully, you find this helpful.  Don't hesitate to reach out if you want to know more.  It's still early our investing career but I'm slowly making progress while running my business that is not related to real estate.

When I started evaluating out-of-state places to invest, a reviewed a lot of different factors.  We knew our first investment was going to be a learning experience as we had to do everything from the ground up such as build a team and learn how to manage the team remotely.  It was also quite a jump to buy a property that we had never seen.  But we had gone through many of the experiences in person.  So we set a short-term goal to learn a ton and not lose money (basically the goal was to learn for free).  That meant that the property had to cash flow long-term.  So I think our biggest factor was finding an area where the 1% rule possible.  I also reviewed info about states that were landlord-friendly.  Coming from California, that's usually not a hard thing to do.  So that I started crunching numbers and reading posts on BP & other forums.  Overall, the mid-west tends to be a place where you can cash flow (as compared to the coasts).  Indiana kept coming up on the radar.  Then we also determined that the prices were at a level we felt comfortable learning the process.

As we look for our second property, we are not only looking in Indiana but several other markets.  With the current environment, it pretty much seems to be tough anywhere to find deals.  We are actively looking in Indiana.  We are also researching other markets in Tennessee, Arizona, Idaho, Ohio, & Florida.

@Caleb Crockett

Welcome to the BP!

This is a great forum with very knowledgeable members that will help to guide you in the right direction, whether that is real estate sales, wholesaling, flipping, rentals, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance. You will be able to share your story and receive plenty of helpful feedback from experienced members.

If you haven’t been to it already, you might want to check out the BP blog: https://www.biggerpockets.com/blog/


The site has quite a few tools that can be helpful for new members. I like the search features: https://www.biggerpockets.com/search

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