Newbie Investing Strategies in San Francisco - Flipping & BRRR's

[Ather Rizvi]

Hi All,

I am looking to invest in the SF market with the notion that that buying in one of the hottest markets in the country will be the least risky. A couple of methods I am looking to try is Flipping or BRRRR if possible. Also planning on focusing on the more up and coming areas as well. I am doing as much research as I can here and on other sites to build that knowledge base up. With the shear demand for housing, I am noticing that prices for homes that need repair, maintenance already have that profit margin baked into the price.

I was wondering if anyone is having any success doing Flips or BRRRR's in this areas with some level of success or is it just way too competitive to break into? I am pretty good at doing my own repairs but putting in new plumbing and electirical would require a licensed contractor and it sounds like they are hard to find these days. I'm also not sure what type of work requires a permit from city as that is a long and costly process.

Also wondering if anyone has a good handle on the future market trend for the next few years. There's talk of a recession but SF seems to have its own micro economy.

Thanks in advance for any feedback.

Ather

[Jan Kerr]

Hi Ather, 

Your comment about San Fancisco's micro economy is an accurate statement. Every metro area has its own micro economy and every one is different from all the others. When you hear the news media talking about a coming recession, take all of that information with a grain of salt. They are generalizing and trying to sell news. Fear sells news. They may or may not be trying to make people think that the whole country's housing markets are all on the same cycle which they are NOT. They may be mis-informed or just, summarizing for breveity and convenience to make sound bites sound good.  

Flipping and BRRRR are good strategies for that area. Prices being very high there may scare off some investors. Financing is available one way or another everywhere becasue prices are relative to the individual markets and lenders who work there know what the numbers are, so that is not genreally a problem. You will need to have some operating capiital to take care of earnest deposits and more for down payments and holding costs or partners who are willing to cover those expenses.

I can show you where to find statistical information and data to better educate yourself on any market. If you'd like a free 90 minute mentoring session, please feel free to view my profile and reach out to me if you want to set that up.