First Time Buyer - Now a Good Time? (Santa Monica, CA)

[Lance Knapp]

Hi All,

This is my first ever post on Bigger Pockets and marks an exciting time for me. I am a commercial real estate analyst living and working in Santa Monica, CA. For about 6 months now I have been absorbing any educational information I can regarding real estate investing. Also, I have analyzed and viewed 50+ deals in my surrounding areas.

I am mainly looking at single family, duplex, triplex and fourplex properties. Many of the deals I see are cash flow negative after expenses and debt service (principal and interest on the mortgage). I have found a few deals that are cash flow neutral. On these neutral deals, I basically make $0 a month, but I get the benefit of my tenants paying off my mortgage, interest write offs, and the potential for appreciation.

Trust me - I want more than anything to buy an investment property, but I am a bit discouraged by the lack of cash flow and high prices in my surrounding areas. Also, I have my concerns regarding the US economy. One could argue that years of quantitative easing and low interest rates have masked underlying issues that could lead to a magnified and painful recession somewhere down the line.

Can anybody provide me with some advice and words of encouragement OR caution?

Really appreciate the support and help. Thank you all.

Best,

Lance