Bought first house in the SF Bay Area
Hello Bigger Pockets community.
Let me just start out by saying thank you. I found BP in June of 2016, when I graduated college with my B.S. in accounting.
I was "invited" to go to a guru course, and while fired up, I didn't want to spend valuable real estate investing dollars on MORE "education". Being skeptical, I took to the internet, and found the BP forums and podcasts...for free. For months, all I did was real insightful posts, and listen to podcasts, intermittently with studying for the CPA exams.
I moved from my home state, Oregon, to San Francisco California to start with a top 10 accounting firm.
I have always wanted to get into real estate, and I found out real quick that San Francisco has an abundance of resources and connections that could benefit me in my journey.
Here I was, fresh out of college, no student loans, but also limited savings, paying over $2,200 a month in rent for a 600sq ft apartment I didn't even like. Upon renewal, "market rates" raised rent another $200. So, I took to BP, and began researching like crazy. How can I make this happen? Goal 1 was to get out of renting under someone else's terms, especially when I felt they were unjustified.
The average starting home price here is still well over $500,000 if you go 30 minutes outside the city.
I began thinking like the many investors I had bean reading about or listening to. To be successful, you need to be able to solve problems, and give back. I did just that. I kept my ears tuned to the problems of those around me, and was able to identify an opportunity when it came about. I needed a down payment, they wanted a low risk investment with a better return than their savings.
I approached the situation with numbers and graphs I was able to generate from the BP tools, analyzing deals in the area. I ended up with a private money loan at "whatever my mortgage rate ends up being", which ended up to be 4%.
I researched the areas I could afford with my preapproval from a local lender, whom I met on BP.
I assessed the pros and cons that I needed in my first property. This was going to be not only my primary residence, but extra bedrooms would likely be rented out.
As of August 2, 2017, I can say I closed on my first "deal". I was able to purchase a home for $327,500 in the Bay Area. 2br 1ba, 1128 sq ft. (For those who are looking for details). PITI +PMI is $2072 a month. I will be renting the 2nd bedroom, below market, for $600 a month. My boyfriend also lives with me, and pays $600 in rent. Before tax considerations, my mortgage will be $800 a month.
Thank you, BP community, for keeping me motivated this year to get my hustle on, and make this happen!
What Is next?
I can officially obtain my CPA license in November. I will be licensed in Oregon and California. I hope to be able to bring value to future real estate partnerships and deals by providing tax guidance, as I progress in both my career and side real estate ventures.
I am looking to meet other investors in the Bay Area, and in my home state, as I am looking into multifamily (5+ unit) deals for the future.
I value giving back, and am looking for a mentor/partner that has similar goals.
Real estate is a journey. As investors, we have the ability to change the lives of those around us. I want to be a landlord that tenants believe being value into their lives, not just a roof.
Thank you kindly,
Ashley Watkins
