Starting with investing, flipping and ultimately passive income

[Paul Choi]

Hi all!

Love BP and the community here!  This is my first post but I've been a lurker on the forums for about a month.  Listened to about half of BP's podcasts on youtube, read Rich Dad/Poor Dad, networked with a few real estate agents, had a few discussions with my finance broker, etc.  Signed up for BP Pro to take advantage of the analysis tools. So I've done tons of research and analysis and just wanted to pick the brains of members here before I dive head first.

I am looking for my first residential investment property in Oakland, Stockton, Modesto and Sacramento. Was initially  looking to purchase cash flow positive multifamily properties but now I'm considering flipping to get some experience and capital for larger down pay and then purchase passive income properties later.  I do have a commercial property in Hayward that's doing well for rental.  I do not want to sell that nor refinance at this point.  I have 15 years of architecture experience and currently work for a large global architecture firm so I am not afraid of construction, contractors, project management, etc.  I have good salary income but want to get out of the rat race.  Got about $70k for investment money.

So the problem is that my credit is not great.  Basically bad decisions with credit cards and wife's student loans for med school.  I am in the process of trying to clean some of that stuff up and pay down some credit cards.  According to my finance guy (who I used to refinance my commercial property years ago) said I can go with hard money, which means 30% down, which puts my budget in the 200k range and that's not including rehab money.  I currently do not have anybody I can co-sign with but that may change if I dig deeper and may ask some family members. 

But given the current situation, I would love to hear your thoughts and suggestions.  I prefer to invest/flip in properties that is in the SF Bay Area (yeah right with these prices) to Sacramento...somewhere I can drive to, see, touch.  May consider south such as Fresno or LA but the distance is what's stopping me, plus not familiar with that market.  Open to ideas, suggestions, thoughts...

Thanks!

Paul