Bay Area · Member since 2021 · 38 posts · 29 votes
I have 100K in cash saved to start investing in real estate. I currently live in California and that isnt enough funds to start with the BRRRR method by buying property here. What's the best approach that I can take? I've started reading and learning about investing and won't just jump into something but is out of state investing my best option?
@Max Gradowitz @Moaaz Malik you can invest in a high cost area like CA. The best option in my opinion is HOUSE HACKING! You can put down %3.5 for an FHA loan. If you have $100k you can even buy a 4 unit for $2,000,000 with putting down $70,000 as the minimum of %3.5, the remains $30k you can use for closing costs and some minimal repairs or just as a nice cushion.
$100k is a ton of money in a lot of the "turnkey" markets. Think
Cleveland, Ohio
Cincinnati, Ohio
Dayton, Ohio
Toledo, Ohio
Youngstown, Ohio
Cincinnati, Ohio
Memphis, Tennessee
Saint Louis, Missouri
Indianapolis, Indiana
Detroit, Michigan
Erie, Pennsylvania
Louisville, Kentucky
Milwaukee, Wisconsin
Jackson, Mississippi
You can win or lose in any of these. It's really about what you buy in each of the markets vs which markets you buy into. Cleveland is the one I am most familiar with so if you look at that market check out The Ultimate Guide to Grading Cleveland Neighborhoods. Whatever you do though, don't buy the riskiest asset you can find in any of these markets because that's where it gets dicey.
I agree with @Carlos H DeOliveira, I'm from Arkansas and it's a great place to get started in real estate investing! My husband and are just getting started in investing this year ourselves.