Opinions/Direction for fresh California Real Estate Investor

[Bryan Glaser]

Hi all,

I've been listening to the podcasts and reading forum posts in order to figure out the direction I would like to take. Sometimes I get that feeling like I missed the boat for deals as the ideal time to buy would have been a few years back. I read all these rules of thumb and realize they do not apply at all for California real estate (specifically Greater Los Angeles).

I find it frustrating that it seems the general opinion is to invest in your home state first and then branch out across borders however with the overinflation of real estate prices in my area I don't see it feasible to pay such a great deal of money for so little of a property/no cash flow especially since its not my objective to speculate on appreciation.

So far from my reading and learning I have decided I would like to focus on SFR/Multi-family. Ideally I want to get out of renting as soon as realistically possible and use my money towards an investment so here are the options I have come up with:

Option A:

Find a multi-family property in non-warzone area of SoCal

At the minimum, covers the mortgage, expenses, etc. via the tenants rents

Live in for a year or however long it takes to make my next move on a personal SFR or condo.

Expand my portfolio to more affordable real estate out of state or in state if possible.

Option B:

Keep renting and find a SFR/Multi out of state but close to Los Angeles area (Phoenix/Vegas).

Expand portfolio.

Starting small is key but I would love to one day grow to a point where I was making $5000/mo passive income or more in addition to the property values. Interested in long term wealth, not the get rich quick dream.

Lastly, so I don't sound like a whiner ;) some things I'm doing to help my situation are:

Obtaining my RE license here in California.

Paying down bad debt; credit cards, student loans, car loan (As quick as possible).

Reading and listening to a lot here on the BP website.

Opinions welcome, trying to see if my goals are realistic or if I need to rethink some things. I'm 28 and looking to have myself set in the future so I can enjoy some of my other passions in life. BP has been a huge help so far, but even with some questions answered, I'm just discovering the tip of the iceberg. Thanks all!