All Forum Posts by: Keith Torsen

Hey, all.

Long story short, I'm doing what I can to be more financially fit, so i can start investing. I would love to start house hacking in Sacramento, California. Thing is, small multi-family homes are not cheap in this area, dollar amount speaking.

I'm looking for at least a tri-plex, maybe a fourplex, but I dont want to start with a duplex unless I absolutely have to, for personal reasons. But... I can rarely find a decent 3-4 unit home for under $300k.

I feel like I can take my down payment money and buy more houses in markets that are cheaper, dollar amount. I know that's not the only thing that matters, but actively trying to find a deal in such an expensive market is slowly seeming like a losing uphill battle, and it seems like I could go more inland (such as the Midwest, or even my hometown in Arizona), and have my dollars stretch further, as long as the cash flow remains positive. If I move to other markets that I don't live in, I'm fine with a duplex or even single family. I'd just rather house hack in Sac than either move out of the city, or invest from afar.

Is this how I should be looking at it, or should I try to tough it out for the market I really want to be in?

@Frank Patalano

That's actually a book I've been wanting to pick up for some time now. Thanks for the recommendation!

@Frank Patalano

What's holding me back is self-discipline.

For 7 years, I've known what I'm supposed to do, and how to get started. I simply don't change my habits to reflect my new knowledge, and am stuck choosing to not change, because its "scary"...

If you're barely paying P&I, I would suggest raising the rent, and decreasing landlord costs. You can't get by if it barely breaks even. What happens when something breaks, or otherwise needs repair? Or general maintenance on the property? That seems like a bad rental to me. How hot is the rental market where you are?

I would need more information on how this idea came to be. If I had the opportunity to acquire an airport, I would choose to purchase one. I dont know all the ins and outs of airport construction, but even if I did, I think I would still buy an existing one. Without any other details, it just seems easier to me, if you are set on buying property like that

The Book on Real Eatste Investing, from Bigger Pockets.

@Bryan Venable If you're considering AZ, check out the Verde Valley. It's an hour and a half north of Phoenix, and the valley has about three or four up-and-coming towns with, if I remember correctly, are in your price range. The Verde Valley, and more specifically Cottonwood, AZ, is my home area. I wouldn't invest there, but that's a very personal choice, having nothing to do with numbers and everything having to do with me growing up there. I have no interest in going back other than family. The other upside to buying in Cottonwood is it's right next to Sedona, AZ. Popular vacation spot with beautiful red rocks.

@Ahmed Kakar, is that 25% the assumed down payment for a property? I understand the high taxes, but for now I enjoy living here, so the high taxes aren't a deterrent, especially if  Ican make it worthwhile

@Vaughn Smith, good advice. I will make sure to do that the next time we see each other. Yes, this young realtor is very hungry, and is already impressing me in that he is going a very different route than other realtors I talk to who just want to sell you a house. I can already tell that this guy really gets what I'm interested in and what I'm looking for at this time. I do know that he is not currently an investor, but he is interested in purchasing raw land and building new houses to rent out on new lots.

Hey all. I hail from North Highlands.

I'm a total newbie at this, but I've been talking with realtors and lenders in the Sacramento area to be able to get my first deal off the ground. Im not interested in out of state, but I am looking to be active in the Sacramento area, and I am seriously looking to house hack here before I move on to other ways to invest.

@Chris Boden and @Ahmad Kakar. How do you all feel about the current Sac market for multi family housing? Any other ideas are welcome, too.