I'm an IT guy that is looking to get into real estate investing (in hope to build financial freedom). I figured I would start out by getting into wholesaling, which I am hoping will introduce me to my first BRRRR opportunity.
I currently live in Riverside county, so I was planning to start in this area.
I'm still in the process of educating myself, but was wondering if anyone has any suggestions for me. Curious if anyone thinks my buy/hold goal is obtainable in Southern California( with only about $60K of savings). Should I be looking out of state? Also, one concern that I have is that I recently bought my first home. Not sure how this will affect my eligibility for another loan.
Any feedback/suggestions would be greatly appreciated!
Investor · Kansas City, MO · Member since 2018 · 117 posts · 46 votes
7y
@Ben Mosh Buy and hold for cash flow is difficult in SoCal without larger down payments. Considering out of state investing should be part of your process when considering a market to invest.
If you are concerned about getting another loan, the best thing to due is get pre-approved ahead of time that way you know you can get the financing needed for the deal. Basically it comes down to debt to income ratio.
Investor · Kansas City, MO · Member since 2018 · 117 posts · 46 votes
7y
@Ben Mosh Buy and hold for cash flow is difficult in SoCal without larger down payments. Considering out of state investing should be part of your process when considering a market to invest.
If you are concerned about getting another loan, the best thing to due is get pre-approved ahead of time that way you know you can get the financing needed for the deal. Basically it comes down to debt to income ratio.
downey, CA · Member since 2018 · 70 posts · 13 votes
7y
@Ben Mosh I'm also an IT guy lol that is new to the game, always looking forward to meet newbies like me on this game, for all the pros out there, since we are here in California I also made a post about this, should we "wait" or should we just go for it? the market is tough right now will properties in an all time high, and living in Cali doesn't help with rising rent prices, here we have to play the equity game and "hope" the properties appreciate faster than inflation
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
7y
Just know that wholesaling is a job, not an investment strategy. It's a great job to learn more about investing, and find properties, but it is a second job.
$60k isn't going to buy you much anywhere in SoCal, and what it does buy you isn't likely to cash flow. $60k can, however, buy you 2-3 good cash-flowing properties OOS depending on the market and what you're buying. Well actually not that many...you'd need some of that money for the rehab if you're doing BRRRR.
An investor-friendly lender can give you info on whether you qualify or not.