Looking to start out of CA investing

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Looking to start out of CA investing

Daniel Barbosa
Rental Property Investor · Vacaville, CA · Member since 2019 · 3 posts · 2 votes

Hello BP peeps,

Let me quickly introduce myself. I’m a 27 year old medical device sales rep who wants to build passive income and quick the 9-5 grind asap lol. I currently own 2 homes and 2 plots of land in CA, but have realized I will never be able to get to my goal at the current rate of acquisition Im at due to cost of RE in CA. So now I’m looking to invest in my first market outside of CA that generates monthly cash flow on buy and hold properties.

I have about $200k in liquid capital that i am working with. My goal would be to find a great BRRRR opportunity and use this same capital to acquire multiple properties generating $500-$1000/mo in income.

I’ve done some basic research but was really hoping to connect with people who have first hand experience in successful markets across the country.

Please help a brotha out lol thanks everyone!!!

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Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
5y

I started with SFH in 2009-2015 which I was working my engineering gig. Then went into syndications once my net worth went over 500k.

If i were you I would just take the 200k and buy 1 turnkey (30k down) then one you are a little more experienced buy 5 more.

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  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    5y

    I started with SFH in 2009-2015 which I was working my engineering gig. Then went into syndications once my net worth went over 500k.

    If i were you I would just take the 200k and buy 1 turnkey (30k down) then one you are a little more experienced buy 5 more.

    5Reply
  • Daniel Barbosa
    OP
    Rental Property Investor · Vacaville, CA · Member since 2019 · 3 posts · 2 votes
    5y

    @Lane Kawaoka Thank you for the feedback Lane. I'm not opposed to buying a SFH turnkey to start as long as the cash flow is there and makes financial sense. Which markets would you recommend for monthly cash flow for a property around $125k?

    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    5y

    Birmingham, Atlanta, Indianapolis, St Louis, Kansas City, Memphis, Little Rock, Indianapolis, Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.

    2Reply
  • Justin Polston
    Property Manager · Shelbyville, IN · Member since 2014 · 303 posts · 161 votes
    5y

    @Daniel Barbosa hey! The Indianapolis suburbs produce some awesome returns!b don't examples: Shelbyville, Franklin, Greensburg, Greenfield, Southport, Greenwood (anywhere in Johnson county really). I have flipped over 50 homes over the past 14 years in those areas.

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Daniel Barbosa:

    Hello BP peeps,

    Let me quickly introduce myself. I’m a 27 year old medical device sales rep who wants to build passive income and quick the 9-5 grind asap lol. I currently own 2 homes and 2 plots of land in CA, but have realized I will never be able to get to my goal at the current rate of acquisition Im at due to cost of RE in CA. So now I’m looking to invest in my first market outside of CA that generates monthly cash flow on buy and hold properties.

    I have about $200k in liquid capital that i am working with. My goal would be to find a great BRRRR opportunity and use this same capital to acquire multiple properties generating $500-$1000/mo in income.

    I’ve done some basic research but was really hoping to connect with people who have first hand experience in successful markets across the country.

    Please help a brotha out lol thanks everyone!!!

    I know a lot of people for CA that have invested in Columbus, Ohio 

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  • David C.
    Accountant · NC · Member since 2017 · 64 posts · 26 votes
    5y

    @Daniel Barbosa you could consider investing in a syndication as most minimum investments are $25-50k. I am in Greenville, North Carolina which is in a real estate shortage. Everything is selling within days of listing and above asking price. I am currently pursuing an apartment building that a portion of your liquidity would yield you the return you're looking for. So definitely consider North Carolina as an area and if you're interested in the deal, send me a message. One of the partners in my accounting firm is located in California. I can connect you with him as well for any tax or accounting needs, too.

    0Reply
  • Jason Rhodewalt
    Investor · Sacramento, CA · Member since 2020 · 105 posts · 48 votes
    5y

    @Daniel Barbosa I'm in a similar boat and very close to buying our first TK/MLS offers in Memphis. Happy to talk details if you'd like

    1Reply
  • Zeke ListonBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Daniel Barbosa:

    Hello BP peeps,

    Let me quickly introduce myself. I’m a 27 year old medical device sales rep who wants to build passive income and quick the 9-5 grind asap lol. I currently own 2 homes and 2 plots of land in CA, but have realized I will never be able to get to my goal at the current rate of acquisition Im at due to cost of RE in CA. So now I’m looking to invest in my first market outside of CA that generates monthly cash flow on buy and hold properties.

    I have about $200k in liquid capital that i am working with. My goal would be to find a great BRRRR opportunity and use this same capital to acquire multiple properties generating $500-$1000/mo in income.

    I’ve done some basic research but was really hoping to connect with people who have first hand experience in successful markets across the country.

    Please help a brotha out lol thanks everyone!!!

     Hi Daniel, I would check out the Columbus, OH market. 

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  • Spence Kal
    Rental Property Investor · OH (ohio) · Member since 2018 · 166 posts · 113 votes
    5y

    Cleveland and Columbus are decent markets, a lot of people from California are buying there. The only problem with buying a BRRRR out of state now building a team of good people. All the good contractors I know are booked out a full year. So turnkey, if you can find one with cash flow, might be a better option. I've looked at a couple in my search around Cleveland that would give 1-200 cash flow, but they're harder to find. I use BRRRR because I can do a lot of the work when a contractor isn't available.

    1Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    Out of state investing is definitely a good option and can be done pretty well with the right team in place. Since you highlighted your goals I would start to narrow down some cities that match that. @Daniel Barbosa

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    1Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Daniel Barbosa your dollars will certainly go further in a Midwest market. Ohio has 3 major metro areas full of opportunity- and there are a few of us that specialize in working with OOS investors almost exclusively. Glad to chat more on this if you want to explore the local market.

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  • Darius Ogloza
    Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    @Daniel Barbosa I assume you are looking for investments that routinely cash flow $500 to $1,000 per month each and not collectively, right?   Also, that cash flow net of capital expenditure, vacancy reserves and mortgage payments?  Very hard to find in "cheaper" markets, especially with the recent run-up in real estate prices nationwide.  It is very important to do your diligence and not rely on pro formas sent to you by investor/suppliers.      

    1Reply
  • Account Closed
    Specialist · Charlotte North Carolina · Member since 2020 · 112 posts · 66 votes
    5y

    Have you looked at Charlotte, NC? It is a great investment market. 

    CLT has had constant population growth for quite a while, which means continual demand growth for housing. Within the city limits has some pretty expensive (and increasingly so) areas, some pockets of the town and the suburbs (Concord, Huntersville, Belmont, etc) are far more affordable and offer better long term rental ROI. Within the city, you will find strong appreciation and solid ROIs for flips/new-builds and short-term rentals. Overall, we are experiencing appreciation from 10% to 16% year over year (depending on location).

    I can help if you have any CLT-specific questions, feel free to DM me. I can help with any questions you might have about the market as I have investment experience with everything from large multifamily portfolios (250 units) to SFR'S with first time investors in NC and San Diego.

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