BRRRR Investing in Southern California

[Kevin Luttrell]

Hi All,

I'm just starting my real estate investment journey. I don't have too much experience yet, but I've been a mortgage banker for some time so I have a decent base knowledge. 

I was wondering if anyone could give me some advice on investing in southern California (I'm in Orange County). The rent/price ratios are terrible and so far it seems like even if I can find the perfect BRRRR deal, the rent will barely cover the PITI (at least for SFR). So right now I'm trying to search for 3-4 units in LA and Orange county, but does anyone have any other areas they would suggest I search in? I'm really willing to look anywhere in SoCal.

Also, any advice on long-distance investing would be great as well. I'm beginning to think that would be my best option and I'm searching around the country for good areas to buy in. I feel comfortable finding a good realtor and property management company in an out-of-state area, but I'm definitely nervous about buying a fixer-upper and trusting a local contractor to rehab it. Anyone have experience with this? Any advice? 

Thanks in advance for your help!!

[Josh Bakhshi]

It's hard to make numbers work in SoCal (or anywhere in CA) unless you plan to buy and hold for 5+ years and cash in on the appreciation.  I do like the idea of looking out of state.  First thing is to READ READ READ.  Find 3-4 areas (cities/counties) you want to invest in.  Call local agents and PM.  Tell them what you are looking for and see if they think it could work.  Ask them if they have contractors they work with to give you bids.  Also find 3 more contractors on your own to give their bids.  Compare work needed and costs.  Make sure you have your agent and/or PM checking in on them.  Understand that people will F*** you over, but that is part of the business so go in with eyes open.

Good luck