New to bigger pockets & real estate investing.

[Alonzo A.]

Hi, I'm new to real estate investing, My background is in the Technology Industry. I'm currently living in Stockton, in the process of listing my property to start investing in rental properties. Interested in, flipping multifamily homes (2-4 units) in the surrounding area. Please leave comments with any advice, I want to network with like minded investors, Invest in the Stockton area. I'm willing to work with a partner, that has same interest in investing in flipping multifamily homes (2-4 units), Any guidance appreciated. Thank you!

[Wes Blackwell]

@Alonzo A.

I'm from Stockton and live in Sacramento, and work in both markets so I know them extremely well. Specifically 2-4 unit multifamily since that's where most of the Bay Area investor money is flowing to these days.

My advice would be to definitely research crime statistics ahead of time before purchasing the property, as that is something the investors will definitely be taking into consideration before making an offer (not always the case with SFR home buyers... they fall in love with the property, investors fall in love with the numbers).

Another thing I would consider is renting the property out with awesome month-to-month leases for the highest rents possible prior to listing the property. Any investor I work with gets all the details on rents and is able to run the ROI prior to purchase, and it'd be much nicer if you already had good tenants in place prior to listing the property. That way you'd make it as turn-key as possible, and Bay Area investors love turn-key properties.

This sort of goes in hand with the first point, but be sure not to over-improve for the area. Don't go wasting your rehab budget on marble counter tops and bamboo flooring if your property is located in the heart of Del Paso Heights (or off Kelley Dr since you're from Stockton hahah). You'll waste money you didn't need to.

Another last consideration is potentially doing a "slow flip" where you live in one of the units while you're rehabbing the property. You'll need a place to stay after you sell your current primary residence anyways, and it will allow you to qualify for owner occupied financing (lower interest rates and down payment) and you'll be able to sell the property capital gains exempt after living in it for 2 years. Surely not as sexy as flipping on the regular, but still a big money maker since you could potentially live in the property and have your mortgage paid for while you're renovating it.

All price ranges work up here in Sacramento, whether it's a $225k duplex in South Sac or a $600k duplex in Curtis Park. Either way they can sell.

Tell us more about your business plan and where you plan to invest in Sacramento and perhaps I can steer you in the right direction and away from the bad areas if you're unfamiliar with the area.

Oh, and one last thing... consider doing this in Stockton too. Investors are starting to catch wind that returns are better in Stockton (thanks in part to me lol) and so there's money to be made there too and you're already familiar with the area.

Hope this helps. Best of luck!