So Many Options! Help!

[Keith Green II]

Hello world, 

So, i've lived below my means, I saved, I researched, I received my pre-qualification, I was advised to shop around. Here's where all the options started raining down on me. 

FHA, Conventional, NACA (so far the best deal). Then more questions came into play. where to buy? How much to spend? Do I buy an investment first or a personal property? Do I use OPM or put down 20%? Hard money? Distressed deals? I've read up on some of these terms and concepts but alas.. My eyes are crossed now and I'm more confused than when I started.

A bit about me:

I live and work in the Bay Area of NorCal

I want to get in the pool with the cool kids (Get in the market "short term goal")

I would like to become an investor in buy, hold, rent, leverage and repeat (long term goal)

I saved 50k 

I have no debt

I work in Tech sector 

I'm seeking guidance on the path to success. I know there are people who have already done what I'm trying to do and I just need to follow the blueprint. I would appreciate some guidance on this as it is a lot of money and I'd love to avoid making mistakes by heeding some of the wisdom offered here by the experts and vets. 

Thanks in advance,

Keith

[Sean Resavy]

Hello Keith,

Sounds like you are lacking direction. I can not tell you what to do, but what I can share is my own path and what I've learned. First you want to find an agent that is for investors. We used Steven Lam with the David Greene team here in the Bay Area and had a fantastic experience. We bought a duplex in Vallejo for $500k on an FHA loan. total acquisition with closing costs and all came out to $32k. If I were to do it over again I would have done 5% down instead because the PMI can go away at 20% where as the PMI is with the life of the FHA loan until you refinance. lesson learned, but if money is tight then maybe that is a good option for you. The property has already appreciated $100k and we will pull a HELOC this coming year to reinvest into our second property. With the duplex you can do a LTR (long term rental) or a STR (short term rental) depending on what you want to do with the second unit. You can also rent out a room to a buddy in your unit to help offset the mortgage. Markets are appreciating so don't wait to get in the game.

Remember, all risk is mitigated through education. Keep reading books, keep watching YouTube videos, and keep listening to podcasts. The more you know, the more of an informed decision you can make. I would recommend looking in the markets that Brian recommended: Vallejo, Oakland, and Richmond for the most affordable multifamily in the bay area. You likely will not be able to meet the self-sustainability requirement for a triplex or quad plex on a primary residence loan, ( unless you have 20% to put down which you said you dont ). So for that reason I recommend searching for a duplex. Next you will want to decide on the area you want to purchase. An agent can only help you if you have your CCC. see link: https://www.biggerpockets.com/... . If you present yourself to an agent with your CCC, they will be able to help you a lot more. Let me know if you have any further questions and id be happy to help to the best of my knowledge.