New Member from San Francisco - Interested in Buy & Hold

[Steve Cook]

Hi Everyone,

I've been lurking for a month or two now and have been picking up a lot of knowledge from BP in addition to reading some great books.

The Millionaire Real Estate Investor

Rich Dad Poor Dad

The Real Estate Investors Tax Strategy Guide

The Richest Man in Babylon

Buy it, Rent it, Profit

A little about myself, I'm 28 and work at a large technology company in San Francisco where I do financial modeling. I was saving for a house here, but realized after doing more research that I would rather put my money to work in an investment property. As a result, I have about $20K to invest, but I'm currently planning to wait until June, at which point I'll have another $15K worth of options that vest and will have a total of $35K.

My current strategy is focused on buy & hold. My immediate goal is to pick up least two properties a year for the next 3 years that produce a positive cashflow of at least $250 month. I'll be reinvesting all the cashflow as well as $30K per year of my own money which will be the minimum I'm amount to save in any given year. I'm open to both SFH and MFH.

My current challenges are evaluating my target markets, after reading article after article, some markets I've identified are Houston, Indianapolis, Kansas City, Dallas & Fresno. They all seem to have properties that will cash flow for the amount of money I'm able to invest. Fresno might stand out as an oddball from the others, but I like that I have the ability to drive there in a couple of hours and see things for myself.

For the other markets I've stumbled onto a lot of 'turnkey' providers which seem to be a great option for out of state investors. Obviously, any deal I'm involved with will be subject to my own due diligence and research, I'm not scared of spreadsheets or rolling up my sleeves to do some analysis. I just don't know who the reliable turnkey providers are and in which markets, this is part of my ongoing research.

Apologies for the lengthy write-up, but I would love to connect with any experienced investors in the Bay Area who would like to serve as a mentor, I'm like a sponge right now and soaking up all the information I can. :)

Love the community you guys have created here and looking forward to quitting my job in a couple of years. :)

All the best,

Steve

[Erin A.]

Hey, Steve!

I just sent you a colleague request via BP. I'm in the Bay Area as well (Oakland) and would love to connect.

My name is Erin Allard and I'm a recent grad. I earned my BA in economics and my MS in international real estate. I've kept a decent job throughout college, saved my pennies and am now in escrow (FHA) on my very first property, a recently renovated triplex in Stockton.

Just curious... why are you looking at markets so far away for your first investments? True, the Bay Area is expensive, but there are definitely some more affordable areas where you can still find lovely homes.

My own short- and mid-term strategy is to serially owner-occupy multifamilies with FHA financing and live in one unit while renting out the others. Perhaps multifamilies are an idea you might consider, especially if you find a property in the suburbs but near the BART line that could take you into work every day.

Anyway, would enjoy hearing from you. Good luck!

Best,

Erin