Changing direction

[Lee S.]

I'm getting ready to start investing in real estate, I've made some posts already regarding investing out of state due to living in California.  I do have some past experience working on some commercial deals but that didn't turn out too well.

I've done a lot of reading and listening on BP this past month and I feel my mind changing towards investing locally.  I've lived in my area since I was 5 years old, I know if a house has potential by knowing nothing more than the street name it's located on, and I probably know the exact house without looking it up.

I've started multiple businesses in my lifetime and haven't taken a check from an employer since I was 20 years old (41 now).  I was hesitant to turn real estate into another "business" that i'm starting from scratch, but I do have mostly unlimited time (I work from home) and the ability and experience to do it along with enough cash and income for that not to be a limiter.  

Leaning towards starting a marketing plan to hunt down deals in my area. I guess I would look at it as wholesale but I don't want to pass the deals on, I want to turn them into buy and hold. IMO this is the only way to really make California properties work right now. There is not a single house on MLS that could be bought and rented without losing money on a monthly basis, and it's not even close.

I would pass deals on if the price point doesn't fit buy and hold (probably flip these) or it's a rehab situation that is over my head/skill set, otherwise my plan would be to hold.  I do not plan to swing a hammer, I would probably hurt myself and destroy the house.  

I realized that If I went out of state for cash flow of maybe $200 a door (don't want C and below properties) vs being patient and buying one good local deal a year with some equity (goal would be more, just stating a minimum I would be ok with) I would come out way ahead in the long run.

Sorry for the long post, brain storming out loud as usual.  How many have experienced this mindset change? Anyone else in California or other expensive markets that have taken this path, please chime in with some success stories and encouragement.

It's funny that my initial reaction to doing this type of thing was "no way", but the more I've educated myself, the process itself is starting to excite me.  Maybe it can be compared to a hunter chasing Bambi in the woods...maybe that's a bad comparison.

My biggest concern with this process is being able to assess the condition of a property.  I have contacts that may be able to help me with that but I would prefer to learn that skill sooner rather than later. If anyone wants to point me in the right direction on rehab info that would be appreciated.  Thanks.