First time investor- house hack in SD or LTR in mid-west or open to other

First time investor- house hack in SD or LTR in mid-west or open to other

Investor · San Diego, CA · Member since 2023 · 6 posts · 11 votes

Hi BP community! My husband and I want to explore a real estate investment. I've been reading books, took a course, reading forums; there are infinite ways to invest, but seemingly few that are *currently* profitable. I've ran a few calculations, both in my county (San Diego) and out of state (mid-west). Maybe I haven't run enough. I dispose of time and am fairly passionate to diligently carry out a real estate project for the next year. Beyond that I do need it to be pretty self-sufficient. But I'm still boggled as to where and what exactly. Being completely transparent, heavy rehab work is too much for our tolerance level (both stress and financial). This feels silly to say, but obviously, like everyone, we are looking for the best returns. I recently also heard of storage units as a more passive investment. Any recommendation and knowledge of current markets and trends would be greatly appreciated. We have around $150k to invest. Thank you!

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y

    You can't get the best returns and also be hands-off as a first-time investor. You also aren't buying a one-off storage unit on your own. Self-storage is a good investment as a syndication and other syndications may be good for you, but it seems like you want a little more control. Turnkey rentals would be your best option, somewhere with immediate cash flow and some appreciation upside if you hold it. That is the midwest, maybe Texas, depending on your buy price.

    Running calculations without looking at properties is fools gold. It's a waste of time. You have to understand the asset class on a spreadsheet and in real life so you don't make a mistake.

  • Investor · San Diego, CA · Member since 2023 · 6 posts · 11 votes
    2y

    Thank you for replying Jonathan. We've also been exploring properties in person. Mostly turnkey properties. But here in CA, at leas the ones we've seen, come at a hefty price tag/ don't cash flow. I fear that without a "contractor eye" my viewings of any property that needs rehab is pointless. I haven't been able to gage how much they cost to rehab. I like your turnkey property idea, that's what we've been discussing. Any specific cities/areas you recommend? Finally, I do intend on being fully hands on, but hope to eventually be partially hands on. I think that's fair. From all I read, that's the natural evolution of people's RE investment journeys. 

  • Real Estate Broker · San Diego, CA · Member since 2016 · 355 posts · 195 votes
    2y

    @Mariana L. Do you know the loan amount you will qualify for? This is be good to know as you formulate a strategy. If you can qualify for a 2-4 unit property in a area you would like to live here in SD, I strongly encourage this strategy.  

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