All Forum Posts by: Daniel Kirchen

I live in California and I’m a new real estate investor. I purchased my first investment property about a year ago and am now cash flowing a few hundred per month with hopefully a long term tenant. I am recently sold my hone that I was previously living in and looking for a new home to purchase and live in maybe short term maybe long term.

I have debt that I wanted to pay off before investing in another home. An opportunity cane up with a property with an ocean view and a SFR feel but listed as a condo. It's a corner lot with a yard and the only property with an ocean view for under 800,000. I feel that this will be a great investment being so close to the beach and the value increasing.

Having said that, it is way at the top of our price range. It is a lot further from my work family and friends. I only work 3 days a week but it’s still an added stressor. We can afford it but it will be difficult to pay the other debt off. I really want to jump on this opportunity because we were given the chance to see it and put an offer in before it hits the market.

Do I push myself and grab the opportunity or pass on it. I am trying to get an unbiased opinion because I feel people always seek out advice that supports their feeling on the matter. I am looking for both sides of the argument. Thank you.

@Stephen J Davis I will look into it! I appreciate your help!!

I spoke with my mentor yesterday and he was just clarifying. He said the goal is to buy and hold to create wealth by having someone else pay down mortgage instead of cash flow. There is little to no cash flow in SoCal. He also said the lower home prices that generally create cash flow come with more repairs, worse tenants, plus it’s out of state. So his strategy is just building wealth by forced savings and building equity... if you have any thoughts on this feel free to share. I want to create wealth but eventually I would like to buy some cash flow properties.

@Stephen J Davis I very greatly appreciate the reply. In CA having any cash flow is difficult to impossible and I don’t want to rent out of state... I am confused as to where to start. I want to create 10kpassive/month so my wife can come hone and we could have some freedom! We are both nurses with good income but don’t want to trade dollars for hours. I have capitol for a few single family homes in SoCal. I just wanted to invest here because it’s more secure. Most people want to live in orange country and close to the beach. I doubt there will be a shortage of that. What do you think the best strategy is to accomplish my goal? Thanks again.

Hey guys, I am looking into buying and renting properties out in Southern California. I have a mentor who has been in the real estate industry for a long time. He says his way is not the best or the only way to make money but he knows it works. His strategy is to not go for cash flow but the long term appreciation instead. He believes that people will always want to move closer to the beach and home values will always increase in the long run.

His example buying a home every year for 5 years for around 500k a piece. He says homes in good locations double in value on an average of every 10 years. In this example, house number 1 bought in the first year will be worth approximately 750k. Therefore I can pull out the equity and either buy another property or pay down the principal on other properties. Then continue this model so on and so forth.

Is this a realistic strategy? I appreciate the help!!