First timer to help start real estate portfolio (from CA)

[Dominique Le]

Hi all! I’m so excited to be apart of this community and hope I can learn from you all. I live in the expensive Bay Area of CA. My husband and I were born and raised here. We are renting and in our early 30’s. However our plan is to move to San Diego, CA. Not much cheaper, but slightly!

When we move (sometime next year) we will rent first, however, was wondering on recommendations of a good plan to start building our real estate portfolio.

I was thinking of house hacking and buying a multi unit first so at least we can get our feet wet. I know the cash flow isn't that great, but at least it might help with paying some of the mortgage while we live there. Or maybe just purchasing a SFH fixer upper, rehab it, live there, rent or sell, then onto the next place?

Another thought I was thinking is renting in SD but start purchasing property out of city/state with high cash flow. I haven’t read the books yet, but I wanted to read the long distance investing and brrrr method books by David Greene.

Appreciate any advice! Right now we are just saving for a 20% down payment for anything that’s worthwhile.

I apologize for being a novice, but I am excited to learn and to start building a real estate portfolio. Thank you!

[Daniel Kim]

Welcome! I'm just going to echo what Jon said. 

Househacking somewhere out east in an affordable market may get your whole mortgage paid every month not somewhere like the coast of Cali. I've househacked my last three residences and, although my roommates' rents were helpful, they were nowhere near paying the whole mortgage payment. 

Normally I would never advise anyone who has never owned a home before to start off by investing out-of-state, but these are not normal times.

I think the most important thing is to remember to buy in a neighborhood you want to come home to every night. It doesn't matter when you're buying out-of-state for pure investment purposes, but when you are going to live in the property (even for a year) I don't think making money is really worth being afraid to talk a walk outside at sunset or have your kids play in the driveway.

Good luck with your journey!