Contradictions on leveraging debt and making good deal da

[Nicole B.]

Hi guys, So I am confused here and need help. I live in the Bay Area and as all you know the prices for housing here is astronomical. That being said I have done tons of research and have learned that leveraging debt is the best way to build wealth quickly. So if I put the minimum down (10%) on a property (thus keeping more in my bank for future investments)my mortgage will be way highwhich decreases my cash flow amounts in the rental. And as I said in the Bay Area the price for housing is incredibly high. So if I'm putting so little down and using the 50% rule (expenses 50% of income) I will NEVER find a property that will cash flow. So does that mean I just have to save a ton to put a bigger down payment on the rental, thus having less cash in the bank ruining my chance of making more investments? Is the 50% rule really plausible in scouting out deals? How do you make a profit in the Bay Area people? The advice I have heard seems to contradict itself... Or at least in this market. Am I doomed to be an out of state investor?

[Arlen Chou]

@Nicole B. there are several people here on BP that have set up meet-ups in the BA. You should make the time to come out them.  Buy some beer and sit down and talk to guys who are making things happen.  If their answers fall in line with your investment goals, then you have found yourself some great resources to start your investing adventure in the BA.  If you find that what they say does not meet your expectations or investment strategy, then reach out to guys who invest outside of the BA and do the same thing.  Either way, you need to start off with direct interaction to get a more clear picture.

Hope to see you around,

Arlen