All Forum Posts by: Brian Garlington

Where out of state are you looking?

I'm in Concord, CA and I was born in Columbus, Ohio. I have some stuff out there and in Cleveland. When people reach out to me about investing out there the first thing I ask is when are you planing on flying out there for the first time. If the answer is, "Oh I already have a guy out there or boots on the gound out there so I won't need to" then it ends up being avery short conversation. I have family in Columbus and I still flew out there.

The second thing I ask is are you pre-approved with a lender? If they say, "No because I will be paying cash" I will tell them that they will not be taken seriously. Countless times agents have wasted a lot of time with what they call "cash lyers" (pun for cash buyers). To mitigate time the good agents out there want to see that you took the time to get pre-approved with a lender. Yes you can get a mortgage on a property that is selling for $50K out there.

I also interviewed agents that had multiple listings of duplexes, triplexes and fourplexes because they are used to working with investors and they also know who the good PMs and contractors are.

I also made sure that they themselves also owned rentals in the areas I was interested in.

Finally, I flew out there multiple times and walked areas BEFORE buying.

It happens more often than you think Saleh. I was born in Columbus. I have some stuff out there and in Cleveland. When people reach out to me about investing out there the first thing I ask is when are you planing on flying out there for the first time. If the answer is, "Oh I already have a guy out there or boots on the gound out there so I won't need to" then it ends up being avery short conversation. I have family in Columbus and I still flew out there. 

Even though I was living in Oakland, California at the time this is what I did

I interviewed agents that had multiple listings of duplexes, triplexes and fourplexes because they are used to working with investors and they also know who the good PMs and contractors are. 

I also made sure that they themselves also owned rentals in the areas I was interested in. 

Finally, I flew out there multiple times and walked areas BEFORE buying. 

The incredible amount of red tape involved previously discouraged a lot of people from putting ADU's up here in the Bay Area. That is starting to change now. Another alternative is people are buying "tiny houses" and putting them in their back yard or the side of their house and then using them as STR's.

Your question is confusing. You talk about primary a residence SFH....and cashflow simultaneously.

From a 40,000 foot perspective I will say that if you want to buy a primary residence and possibly get some cashflow....buy a duplex/triplex/fourplex. Live in one unit,...rent out the others. I've done that. If you still want a SFH instead you can always buy one and simply rent out one or two of the bedrooms. I've done that also....once in Alameda County and twice in Contra Costa County. It also takes an understanding spouse because if they are not onboard with it then it will not work.

What type of properties are these? SFR? Multifamily?

Good luck on this my man.

As another poster mentioned,...look for the "Don't Wanters".  Trying to compete as a buyer can actually be easy. Yes I said that correctly. It can be easy, if you take what the market gives you.   

In these cities......

Oakland, CA

Vallejo, CA

Richmond, CA

Pittsburg, CA

There are duplexes or triplexes in the range between $528K and $699K that have been on the market for at least 4 weeks and have a vacant unit. If someone is trying to househack AND someone wants to negotiate with the seller on terms and price these are perfect. These are the "don't wanters". 

Trying to buy a place in the Bay Area that just hit the market less than a week ago and asking for contingencies and price reductions is comparable to a fly constantly hitting a window pane trying to fly out.

There are definitely meetups..........in fact I was just at one over in The City last month. Go to Meetup and type in real estate investing and you will see at least 3 that are in person here in the Bay Area and about 3 times that many for over Zoom.

Investing....and Single Family House.....and the Bay Area? 

No need to hate life. Also don't always bank on appreciation......invest in the midwest or the south and get some really solid cashflow.