All Forum Posts by: Steven Davis

 Thanks,@Chris Irwin, I agree... I probably should have figured out out in 2008 and again in the oil collapse in 2014. 

The only "good" part was I did my Roth conversion before the market recovered. 

Thanks, Judy. The Central Valley does seem to be the one place where California real estate is not just a dream. 

I am a bit ambitious (cautious) and want that cash flow! 

After 30 years of working my *** off to get an extra percent or two in the stock market, I've finally realized that I should be investing in real estate.

Better late than never.

First of all, Thank You to all the posters, formum-ers, podcasters, and writers on this site. You've helped jump start my education in real estate investing.

Who I am...

• 50 years old. 
• Wonderful wife and 2 small children.
• Decades in the high tech field (IT security).
• Self-employed for the past 15+ years with my own business with an excellent partner.
• Lots of experience on large projects in the software / IT world... and had enough of it.

What I've learned so far...

• I'm not a flipper or wholesaler or other exciting things. I'm pretty much what I was with stocks - a long term, buy-and-hold investor.... Woo Hoo, income and long term capital appreciation!
• I am interested in solid cash flow plus reasonable appreciation (aren't we all?).
• I am mostly interested in multi-unit residential and commercial properties.
• I will probably be "hands off" - using property managers for properties.
• I'm not interested in "turn key" deals unless I do the key-turning.

My challenges...

• I live in the San Francisco Bay area. I don't own my house and, given the market here, that isn't happening any time soon.
• California real estate is (cough) rather fully priced as a whole. 
• I would like to be able to visit the properties that I buy, especially at first. Without getting on a plane, a train, or spending a day or more driving.

Where I'm at....

• I've found my initial market here in California with what I consider reasonable cash flow and appreciation.
• I am (initially) looking at 4-plexes and more-plexes as well as smaller mixed commercial/residential properties. These properties seem the most inefficiently priced as they are too big for residential purchasers and too small for big money dudes...  more on this later.
• I have several properties in my target market that I like. I am getting pre-approved so I can write an offer.
• I am also going to set up an IRA LLC (Roth) soon to purchase properties as well (I've been a good boy an put money aside for years and done pretty well in stocks)... more on this later as well.

Observations...

• This stuff is fun. It is like researching stocks but not having thousands of other people doing the same thing you are. Less competition = more opportunity.
• You start saying you are investing in real estate and all of a sudden, people want to talk to you about it... hello syndication at some point.
• Finding small commercial loan providers seems to be a challenge (also more on this later). Everybody wants to help me finance a 150 unit deal. I look forward to that too!

Glad to meet you all. Happy hunting.

I just started looking at Merced based on the opportunity from UC Merced. 

The area near the campus is the most desirable, for obvious reasons. 

The area is to the north side of the town. 

Our realtor quoted around $500 per month for rooms in houses. 

The Merced opportunity is that the University is targeted to grow from under 7000 students to 20000 students by 2020.

I would bet on more as the UC student population problem is a big issue here in CA  and Merced is the easiest way to grow. 

Student housing is the last thing built. 

Basically, you are out of the dorms after freshman year. Already. 

There is also the promise of High Speed Rail.... But I wouldn't bet on it, personally.

The other challenge for homes is the potential for developers to start building a ton of houses. There is a ton of space. It hasn't happened yet.