Opinions about getting started.

[Josue Juarez Antonio]

I am new to investing in real estate, I am 18, trying to buy a triplex as my first property. I live southern California, I would prefer to stay in California but I know the market is rough, wondering if there are any good markets here. I have been researching about real estate for a bit but would like a second opinion on some things and some guidance. At the moment, I think I will move to Arizona (would also like to get opinions about Arizona) and start with a FHA loan and also see if I can get the Bank of America grant where I can use 7,500 for the closing cost and another 10,000 for the down payment. Any opinions, suggestions, market advice? Thank you!

[Jason Bohling]

Originally posted by @Josue Juarez Antonio:

Hey @Dan Sheeks, Thank you for the response, I read your article and thought it was helpful. Here is a quick update on my plan. I analyzed a few markets and created a Top 3 list: Phoenix-Arizona, Boise-Idaho, and Indianapolis-Indiana. I spoke with a BoA representative who told me that both Idaho and Indiana won't have the Closing Cost assistance of 7,500, only the Down payment Assistance, where as Arizona has both. My next step is to find the top 15 properties that work for me and then apply for the loans. I am missing anything, or anything I should consider? There is also another thing I would like to add. Biden is planning to pass a bill where it would help first gen homebuyers and give them 25k for both the closing cost and down payment. I do want to wait and see where that goes to take advantage of it.

Hi @Josue Juarez Antonio! Congrats on getting started so early, I wish I would've. I can give you a bit of perspective on the Boise market as I live here, grew up here and raised my kids here. To be very honest with you its going to be tough to move to the Boise market. We have a massive housing shortage coupled with a never-ending stream of people moving here from out-of-state (mostly California as far as out-of-stater's), so competition for homes is very, very fierce. A local realtor can give you better specifics, but many homes here are going for all cash, no contingencies and often $30k-$50k above asking price. A few days ago on the local news they had a piece about how many sellers will not even consider FHA or VA loan offers because there's no shortage of cash offers. A local investor I know had his last offer beat by $50k, and one of my neighbors who moved here from Santa Monica bought their primary home sight unseen and had to beat out 10 other offers.  Now, people are obviously buying here, but just starting out you're going to need a good chunk of money to grab something.  You can find cheaper places on the backside (closer to Owyhee County) of Nampa and Caldwell, but traffic is horrendous there as that's one of the areas where population growth is exploding, and on a good day with average traffic will take you 45 minutes to get to dowtown Boise from the backside of Nampa/Caldwell.  Another option would be to look in Boise near the BSU campus if you're willing to house-hack and rent out the rooms-LOTS of student rental potential there.

I would continue on with your plan but I would recommend not factoring in the proposed housing assistance from the Biden administration- realistically nothing will come of it and if anything does, it will be severely watered down.  Not to get too political, but they would need virtually all Dems in the House, all in the Senate plus 10 Repubs to pass it and several Dems have already said they don't support it.  I personally don't count on/factor those things in until its officially signed into law.

Again, I applaud you for taking these first steps, good on you.  A couple books I'd recommend to you to help fine tune your mindset would be Scott Trench's book "Set For Life" and David Bach's "The Latte Factor".  Good luck to you!