All Forum Posts by: Dan Schweit

Lol. Im not saying I agree at all, I was just throwing it out there as an argument for that side of your dilemma. I personally have done very well on my primary homes over the last 12 years. But, could I have done even better if I had put the money strictly in to investment properties, possibly. But I have put down 20% each time. I believe in personal homeownership and its many financial benefits along with its non financial ones as well.

Good for you on finding your way here first. I wish biggerpockets was on my radar before I bought my first property. 

House hacking Los Angeles with that budget is possible, you would just have to look in the right neighborhood.

Where are you looking specifically? Also, i'd be curious where you got the $400k from, is this your estimation, or have you been told that number from a lender?

Hey Reza, I can empathize with your dilemma. I have been in Los Angeles my whole life. I spent my early 20's living by the beach, renting, then just got further and further away, till now when we are in santa clarita. Which obviously is much more bang for our buck, but not really LA anymore. I think Grant Cardone says that owning the home you live in is one of the worst investments possible. So, if you decide to rent, and just use the money to invest, you can really jumpstart things. I honestly wish i would have done that when I was younger. But, I also had a pretty good ride on So Cal appreciation over the last 12 years as well. I personally don't invest in CA anymore as I was able to develop some good relationships in NV and buy some stuff out there over the years. Your decision really comes down to your specific goals. Build your portfolio faster, or do it slower but have a place you own to call home.

As @Logan Vierstra said, listen to the podcasts. I would also do a keyword search on the forums. You can see fellow investors actually having conversations that are directly applicable to what you are researching.

 Great point here. I hear a lot of good things on the horizon for this area. 

I hear there are some interesting things happening in the Bakersfield area, have you looked at any investment opportunities in your area as well?

Hi Samira,

Let me know if you get anything going. Id be happy to participate and share any info on the specifics.

Congrats on all of this! Looks like your career should fuel some serious real estate investing options. Glad to connect. Reach out should you need anything specific or just to chat all things real estate related.

Really depends on your investing strategy. Also, many factors associated with the property itself. Will it cash flow, what's the return on equity and do you have a plan for the proceeds if you sell? I would not discount the fact that you will be managing the property from a distance, so you should probably run your numbers based with management costs included. The great thing about real estate, is you can let them numbers decide for you. Once you breakdown both scenarios in to spreadsheet style numbers, you should be able to see which one best fits your goals. Put it all on paper, then decide. 

@Mark F.

There are certainly landlord/tenant laws that are not in your favor, so there could be some sort of rent control issue that is effecting the rents you’re seeing. I’ll ask if anyone I know has anything specific that cuts to the point. Also, as per my first response, neighborhoods can vary widely from street to street. So you could be looking at buildings in one of the lower rent neighborhoods. Hard to say exactly. If you come across something, feel free to shoot it to me and I can probably tell you what class of neighborhood your looking at.