All Forum Posts by: Hanan K.

Thanks for your feedback @David Song I realized I want to stay in this area as well. I am actually looking at places in Fairfield or possibly a home to rehab in Napa. Stay in touch!

Thanks @Ali Boone and @Joe Kim (That's my husband's name by the way). I figured the 2% rule was impossible but kept hearing it over and over again in various podcasts and wasn't sure if that was a general guideline that investors use to spot a "good deal." You are right that 2% is nearly impossible and that 1% is difficult as well. I really appreciate your insight on the CA market. 

@Joe Kim I'm not interested in C or D class properties. I currently own 2 Single family residences with 30%+ equity in each home (around 450K in total equity). They are both cash flowing but were purchased a few years ago. I also have decent reserves, savings, retirement etc. and I'm just trying to figure out what my next move should be in Real Estate. In fact, I  joined BP to get guidance and insight from fellow investors since I'm unsure of this current market climate. 

I haven't ruled out out-of-state investing and it looks like that may be the smartest move at this point unless I can atleast find a break even property. I'm in it for the long run more than cash flow, etc. My husband and I both hold down full time jobs and cash flow isn't as important to us as long term appreciation and loan pay down/equity building (by a tenant of course :-)). 

@Chris Masons kind of relieved to hear that because there was no way on God's green earth I would be able to find something even near 2% here either. 1% is doable though it will take some patience.

@Carson Wilcox I'm quickly figuring that out. So thankful to have the tools and resources available to me to help me to better understand how to assess my next purchase. Thanks for the tips and guidance. I'm curious where you typically invest since you are somewhat in my backyard? What guidelines / rate of return do you use in your assessments?

Thanks for the quick response @Bram Spiero. That's very helpful and makes sense to me. I'll likely need to look outside of my market unless I can manage to find a steal. Either way, it's just helpful to be better able to analyze deals in my market. Thanks again!

Hi Everyone. I'm a somewhat of a newbie (own 2 SFR in Northern CA) looking to invest in my local market. My question is: Does the 2% rule apply in expensive markets (such as Northern California). It seems to me that the 2% rule takes repairs and vacancy into account but my market has virtually 0-2% vacancy rates and the homes I'm looking at are in good shape. We are also very handy and able to handle many repairs on our own. I would highly appreciate any feedback. Thank you!

Thanks for sharing! I absolutely loved reading through this entire success story and respect your strategy of frugality and living below your means to reach your goals.  It's obviously paid off and you will reach financial independence in no time. This story has helped me to better strategize our next move as well - I think owner occupied multiplex is the way to go. I wish you and your family continued success!