All Forum Posts by: Arlen Chou

@Chandler Miguelgorry check out this meet up in SF hosted by @Brenda Chen 

https://www.meetup.com/sfbayre/

Also, @Bryan Pham has one in Oakland

https://www.meetup.com/Crushing-it-in-real-estate/

I am sure you will find good information at both of these meetups!

Good luck!

@Erik Grahn Although you are considering investing in similar types of properties, the strategies are/should be different. What you should first decide is the "type" of investor you are, before deciding on a market or real estate strategy. The problems you will face, although appear similar will be very different. 

In an OOS investment scenario, you will be at the mercy of your property manager. You will be paying for support that will be untested. Even if you go with a "reputable" outfit to support you, the reality is that you will own a very small piece of mindshare. Keep in mind that most anecdotal information you find online will be from people who had good experiences. Most people who have bad experiences don't post about it, they just fade away. If you are willing to make the effort to build a strong relationship and team OOS, you might have a good chance.

If you invest locally, you can always act as the backup to anything the property manager did not catch. If you live in the unit, you will get some nice tax deductions. Additionally, you will have the benefit of Prop 13 in California. I don't know what appreciation looks like in Cleveland, but it has been amazing in the SF Bay Area. Yes, we are due for a correction, but if you are a buy and hold guy, time is on your side in this market.

Personally, I only invest in the SF Bay Area for the above reasons. 

Good luck with whichever direction you go!

@Kamal Sharma Besides driving through these cities, I don't really know any of these markets so it would be unfair of me to comment. When I research an area I spend several days, spread over several weeks and at different times of the day in those markets.

@Kamal Sharma I can't comment on out of state investments because I don't do it. I see the Bay Area as a wealth-building machine that gives both appreciation and cash flow so I don't invest out of the area. 

Good luck to you!

@Matthew Brinkman there are no secrets in real estate, everything is available on the net. Since you will be living in the unit, the area you look in will really depend on your personal preferences. I invest in certain areas of Oakland, and I would live in the units, but some people on the forum would not stay in any of my units. Get out and go into the neighborhoods and spend time getting a feel for them. You will quickly know the areas you are comfortable in and the ones you would personally avoid.

@Kamal Sharma That is a VERY tall order for the Bay Area proper. You might be able to find something in secondary areas of Bay Point to Antioch, maybe in Vallejo. If you drop your 90s criteria you could also look in the Richmond and parts of deep East Oakland.

@Sudha Viswanathan start with understanding what kind of real estate investor you want to be. Don't focus on the "shiny object". The type of investor you are will point you toward the right strategy. Are you a buy and hold "type", or a flipper "type" etc. Each area of real estate investing has a different personality type with particular skill sets and personality traits to match that niche. Figure that piece out before you spend time looking at properties or geographic locations.

@Richard Mur is your plan in real estate to be an agent or actually to invest in properties? It sounds like you have a strong W2. Contrary to popular belief freeing yourself of a job is not always optimal, especially at the beginning of your real estate journey. You will need the W2 to get loans. Talk to anybody who quit their job first and then tried to get a loan from a bank... it is nearly impossible. You are young and single making good money in the Bay Area. Without knowing your reason for wanting to leave CA, I would recommend you hold your W2 as long as you can and get the grind and hustle going. You can still get your license out of state and invest in that city you eventually want to land in. Find deals during your week, and set up tours for yourself on the weekends. IF you want to trade your tech job to be an agent that actually works with clients on the sell/buy my suggestion probably will not work. You need to be in the market to build up a client base and a reputation.

Good luck!

@Matthew Brinkman what you are trying to do is a pretty standard path for many people in the Bay Area. For your salary rate and low expenses, you should be able to find a deal in the East Bay. Look for something in an up and coming area that needs some sweat equity put into it and watch your wealth grow from there. 

@Minna Folkman house hacking is a great way to go in the Bay Area, especially if you have a long time horizon. I have gone through 3 myself over a few decades, using the strategy of roommates in some cases and just turning the homes into rentals in other and also living in a triplex with tenants, but using lower interest rates for homeowner occupied properties in all cases. I have used Bornstein in the past. He is a little on the pricy side, but he is a straight shooter and won't waste your money.