All Forum Posts by: Gene Hacker

Income taxes and cap gain taxes are very high, but property taxes are very low in California.  Around 1% and generally stay below the rate of appreciation due to Prop 13.  California has some major downsides (mainly being very tenant-friendly) but property taxes are very low. 

Not impossible.  California is a big state and there are areas with cash flow. In the past year, I have bought properties that do better than what you are describing.  I bought a home in Lake Isabella CA for 36k and did 20k in rehab, it is rented for $975/month.  I have another that is currently in rehab that will be similar. 

It is all about the data.  What do the numbers say?  After taking all emotion out of it and crunching the numbers (with conservative estimates), if it looks like a good idea then go for it.  

If you think you can get a better deal then don't settle.  From your post, it is not easy to determine how hard you have searched for a great deal.  Is this home a deal?  Is it priced under the market? 

If you turned over every stone and this is the best property there will likely be then go for it. If you think there is likely a better deal out there...then keep looking!

I like to keep it simple. The private investors I have worked with were all older and just wanted simple reliable returns.  

Anytime I tried to get a bit too creative they would tend to pull back. 

J. Scott wrote a book on exactly this subject. It is available in the bigger pockets bookstore.  I have the original version and it was very good.  That would be a great place to start. 

The way I do it is that I buy properties with major distress at a deep discount.  Properties like this are generally not bank financeable.  I use private lending or my own cash to buy.  Generally, I use my own cash for rehab money.  Once the property is fully rehabbed and stabilized, then I refinance with long-term fixed bank financing and I can usually pay off the original private loan and recoup all of the rehab funds I contributed.  

This was much easier when prices were appreciating quickly.  

Don't be nervous.  Just be yourself and be open to learning. "Networking" can be a bit awkward at first but it is something that gets easier with practice. If the first meetup doesn't go perfectly, don't let that get to you.  And the tone or vibe is different depending on who is hosting it and the format, so if one isn't a great fit, possibly try another one.  

Good luck!

The best way to market to traveling nurses is by listing on "Furnished Finder". That seems to be the "go to" for the industry.  You can also list on AirBnB and VRBO. You can set it up for either shorter term stays which you get more per night but are more work. Or you can go for 30 day plus stays on either platform.  

Check out the events page on bigger pockets and meetup.com and go to any local real estate investing meetup that is not in a bar.  

I have run a local meetup in California for 7 or 8 years now.  Several times we have had 16-year-olds come without their parents.  Everyone was eager to help them. Most investors wish they got started when they were younger so they are excited to see a younger person with drive and determination.  

So just go for it!