Good Credit, no money in Orange County, CA

[George Maka]

First post, but long time reader on the forums. I am in Orange County, CA and I am just starting out in real estate investing. I am interested in a strategy of buy, hold and rent to create a cash flow stream, but I am unsure of where to start. I have good credit (above 700), but I am limited on funds. I have a job, and make about 60k a year.

Is it possible to buy and rent for someone in my situation or should I go for another strategy and build my way up to this? If it is possible, any suggestions on the type of financing I should be looking into?

thank you,

George

[Marco Santarelli]

George Makakaufaki: Hello neighbor!

Welcome to BiggerPockets!

The buy and hold strategy is the best way to create wealth, and I'm glad to hear that's what you're working towards. The challenge with Orange County, or most of California for that matter, is that the property prices are very high and that means that the numbers don't make a lot of sense here. It's a major reason why Californians invest out-of-state in markets that make a lot more financial (and economic) sense!

I don't know what your investment capital is right now, but I would save up the down payment (20% to 25%) required to invest in better markets. For example, 20% down on a typical $70,000 property I'm selling these days works out to $14,000 plus $2k to $3k in closing costs. Those returns are 2 to 3 times what you'd find in parts of SoCal and with less investment capital.

Anyway, just in to the forums and ask whatever you like.

Continued success!