Would like to invest in a Rental Property

Question

New Here! I am looking for advice or wisdom - here is my situation. I am in Northern California I would like to purchase a rental home to provide some additional / passive income. I am very handy so a fixer is okay if its mainly cosmetics (floors, doors, trims, paint, etc..). Able to pay cash.

1) Should I be looking in a highly populated area (which tend to be expensive with lots of rentals already) or a lower populated area? (50K -100k population?

2) How should I set my maximum price based on the rent that I would receive? Any tricks to this to make it worth it in the long run?

Thanks so much!

Max Gradowitz · Answer

If you plan to fix it up yourself, I imagine you are looking at buying within the state? Most parts of Northern and Southern California has become so expensive that it is becoming very difficult to make good passive income with buying rental properties. Consider Central CA. There are areas in the San Joaquin Valley part of the state where you can buy homes in the $100k to $200k range, and 2-4 unit properties in the $200k to $300k range, that make financial sense for a passive income rental property.

Nathan Gesner · Answer

It sounds like you would benefit from reading a book or two just to get a good foundational understanding of real estate investing and managing rentals. The BiggerPockets bookstore is a great place to start!

Lindsey Buxton · Answer

Hi Silas! There's a lot to take in when getting started. Wanted to share that BiggerPockets is launching a pro-exclusive 12 week Rookie Bootcamp in late August, with Ashley Kehr leading the way. It's a mix of on demand videos, live Q&A sessions, and a step-by-step curriculum to help you get your next deal. Sharing in case it would be helpful to get the wheels turning and potentially shortcut the learning curve while meeting likeminded folks! You can learn more here.

Would like to invest in a Rental Property

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