First-Time California Investor in Unique Situation; Please Advise

First-Time California Investor in Unique Situation; Please Advise

Member since 2019 · 4 posts · 0 votes

Hi you all,

I want to give thanks in advance; I know this is a long post, I’m really in-need of advice here, any of which would be greatly appreciated.

For some background, I’m almost 23 years old. For six months, I’ve been working a sales job in San Francisco which pays well for my age (~80k/year), and am extremely fortunate to be able to live at home with my parents in Berkeley and save on rent. Right now I have about 30k saved up (I started saving in college). In a year I’m estimating I’ll have around 65. In 2 years I should be making well into the six-figures, although sales is very unpredictable and hard to estimate; probably somewhere in the ballpark or 110-200k. I have good credit, and thus, I’m in a pretty good position to start thinking about Real Estate. My plan is to save up and study real estate for another year or two, and then execute one of the options listed below.

The X-Factor is, my dream is to skydive a few days a week, and live near a DropZone (within 30 mins) on those days. Ideally I’d work in an office in a big city (SF or LA) Monday-Weds, and work from home Th and Fri, so I could skydive in the evenings past 5, and on weekends.

There are 3 skydiving drop zones which are open Thurs and Fri evenings, each of which are about an hour from the East Bay;

1 in Davis

1 in Byron

1 in Tracy

The other major option is Perris, an hour from LA.

For a very-brief rundown...

1. Davis is a gorgeous location, with great schools, the University, etc. Houses appear to be at least 600k+ here on average, with some very small, ugly ones listed for around 300k. It’s also 30 mins from Sacramento, which is supposedly one of the best places in the nation to invest, where houses are roughly 350k on average. However, I had a bad experience at the Dropzone in Davis, and would prefer to be closer to either Byron or Tracy

2. Byron/Tracy, I don’t know too much about, except I like the Dropzones. The locations themselves are about an hour from the Bay/Silicon Valley, but are not very appealing to non-skydivers. They don’t have much going on at all. I could see it being difficult to find renters or eventually sell whatever house I bought. House prices are lower, on average between 150-300k

3. Perris/SoCal: Perris is supposedly a decent place to invest (Came in 10th in a couple of best places to invest in CA lists). However, it’d require that I change jobs, and I really like my job and coworkers.

I know location is critical for a good investment. While I myself would love to live near Byron or Tracy, it could be extremely dumb to invest with an ulterior motive like this.

Which brings me to Real Estate.

The way I see it, my main options are:

1. Buy a house near one of these Dropzones, stay at my parents, commute to work half the week

2. Buy a house in a big city, and get some sort of mobile trailer to work from/sleep in on skydiving days

3. Use an FHA to get a house in a big city, and a conventional loan to get one out in the country near a dropzone

4. Buy a house in a big city, stay in motels in the country a couple nights a week/camp on the Dropzone (the main problem with this is I can’t realistically make sales calls from a Dropzone, hence the motel idea)

At this point, I’m sort of leaning against option 1. I think if I were to get a house in SF or LA, it’s be easy to Airbnb it out a few nights a week, and far easier to rent out an extra room/eventually sell.

Obviously, house prices in SF/LA are pretty ridiculous right now, and FHA would be my only chance for at least a few years unless I teamed up with some others. In a couple years, I might be able to buy one with a plan to refinance...

My question is

  1. What would you guys do? What is the most financially feasible and potentially lucrative option for me, which would enable me to live in the country part-time and the city part-time?

Again, any advice would be great.

Thanks

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  • Rental Property Investor · San Diego, CA · Member since 2019 · 35 posts · 15 votes
    7y

    Option 5: Stay with your parents and buy a cheap trailer/RV and park it at the drop zone. Get a mobile hotspot to do any business related work that requires internet. I knew someone who lived full time at a drop zone in a 5th wheel type trailer. He didn’t even own a truck to pull it but they let him park it there. He was a pilot for the drop zone. I’m sure if you are spending that much cash to jump as frequently as you plan to, they will work something out. Target Byron/Tracy for this as the airport is smaller and more friendly to this sort of thing. 

    With this strategy you can invest out of state in better markets that require much less initial capital. 

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    Read Set for Life by Scott Trench and start looking for a 2-4 small multiplex.

    The first thing I thought reading this was that I wish I had had your problems when I was 23. We all have our paths, though, and I'm sure yours isn't always going to be strewn with the rose petals of fortune. I wish you the best of luck.

  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
    7y

    get a house on a leas option and air B&B it when  you are not there  perhaps go a bit less but it could work

  • Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
    7y

    Davis is a great market for an investment property if you can find a deal.  Great student population to rent to.

    Tracy is also a good location since there are alot of commuters to job locations in the east bay.

    Byron is a sleepy farm town. not good for investment.

    Sacramento is one of the best markets in the nation as you mentioned.

    Given all this, I would disconnect your passion with your investment criteria.  If you are looking for yield on your money, finding places next to Dropzones is not the best metrics.  Put your hard earned money to work hard for you.  Make some sacrifices now so that you won't have to make sacrifices later in life.

  • Member since 2019 · 4 posts · 0 votes
    7y

    Hi you all, thanks so much for the responses. 

    @Nathan Maier...I had thought of that. However, one thing I’ve repeatedly read is that I want to be physically close to my investment so I can check up on it. I’ve also read that owner-occupants get a load of benefits. Where would you invest out of state?

    @Jim K. Appreciate it, will look into Set for Life, it seems to be targeted towards my demographic. 

    @Linda Labbe why a lease option? 

    @Paul Choi Thanks for the advice. I may go for some combination, where I buy a property in a Sacramento as an investment, and some mobile trailer like Nathan mentioned for personal use.  

    @Linda Labbe

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