Hope to Buy Within 2 years. Seeking Advice (California?fha?s/mf?)

[Jeremy Tews]

Where we're at: wife and I are looking to purchase property in California. As with most, we are waiting to see what happens with the virus and are fully expecting prices to fall within the next year. Obviously things could change. We'll see.

So now we're looking farther ahead and trying to figure out what and how to prepare for the future. I'm on board with what everyone here keeps saying about thinking long-term. We definitely want to invest in somewhere to live that will reduce our rent (or hypothetically pay for it if we can find the right property (the dream)) and that can be rented out in turn within a 5 year period (obviously preferably sooner).

We currently live in California (southern California) and are considering moving to Menifee or thereabouts as we think it's a nice type of area with room to mature and grow. Not at all tied to California specifically and willing to entertain other states (esp within a few states from us) that have solid services and you think are likely to grow substantially.

The idea of buying a small multi-family is appealing and so we're researching what to look for and why when it comes to a quad or less. We're a little wary of California's great investment opportunities as the market seems inflated and the percentages seem lower generally but surely there's opportunity. We may want to simply find a SF home.

Most likely we'd initially try for an FHA loan and would LOVE a fixer-upper property to do some work on ourselves but money will most likely be tight and if it were a solid 4-plex in California there is no way we'd have 20% but obviously the 3.5 is more manageable. We want to be prepared and jump at solid opportunities. We are still researching options: pros and cons of foreclosures, who to work with, how much to bite off with a fixer-upper, distance rental property in removed states etc.

Would appreciate any and all advice. Any reasonable articles to read, forum posts, book recommendations, podcasts (already listening to some BP podcasts) and read a few of the books. Will be happy to answer questions and thank you all very much in advance.