New investor from Oakland, CA / San Francisco Bay Area

New investor from Oakland, CA / San Francisco Bay Area

Oakland, CA · Member since 2016 · 3 posts · 4 votes

I'm so excited to meet new folks in this network! Putting faces and stories to all these strategies and concepts while perusing the forum as a newbie / student has been inspiring! 

I live in Oakland, CA whose RE market has been skyrocketing in the past few years. I spent the last 5 years  building a small business as the operator of an after school learning center for kids. I have been building capital to the point that I think I'm ready to start investing and could use a bit of guidance on how to either take advantage of this hot market or how to effectively invest in neighboring, more reasonable ones. I don't have a lot of first-hand experience in RE but have done a fair bit of reading and did heavy research before buying my condo and have been studying the market closely over the past few years in hopes of trading up. My plans for upgrading have been put on indefinite hold as I am now looking to put my money into investment properties. There are so many directions to go to and I have heard many different opinions on which direction/strategy to take as far as long-term goes. I'm 36 years old, probably should've started this sooner so I don;t have any more time to waste. Thank you and I hope to get to know all of you soon!!! -Sim

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Residential Real Estate Broker · San Mateo, CA · Member since 2013 · 585 posts · 264 votes
10y

@Sim Peyron welcome! You are right in stating that there are many different ways to approach your RE investing to make sure that they work with your long-term goals. Many successful RE investors in the Bay Area start off as owner occupants in the 2-4 unit space in the East Bay (and get in with an FHA loan). There are also quite a few on BP that are extremely successful in the South Bay where price tend to be a bit higher on average than parts of Oakland/Hayward/etc. Do you mind sharing a bit about what you are looking to achieve with your RE investments?

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  • Residential Real Estate Broker · San Mateo, CA · Member since 2013 · 585 posts · 264 votes
    10y

    @Sim Peyron welcome! You are right in stating that there are many different ways to approach your RE investing to make sure that they work with your long-term goals. Many successful RE investors in the Bay Area start off as owner occupants in the 2-4 unit space in the East Bay (and get in with an FHA loan). There are also quite a few on BP that are extremely successful in the South Bay where price tend to be a bit higher on average than parts of Oakland/Hayward/etc. Do you mind sharing a bit about what you are looking to achieve with your RE investments?

  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    10y

    Welcome. 

  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    10y

    @Sim Peyron,

    Good for you on starting your education business, reaching out to build your real estate network, and be willing to sacrifice "trading up" on a personal residence to put your cash into properties that MAKE you money instead.

    Similar to @Ryan Landis, I am a very big fan of FHA loans for 2-4 unit owner-occupied residences in the Bay. In Oakland, you may know that owner-occupied duplexes or triplexes are no longer subject to rent control after you've lived there for a year (for the period in which you live there). Not sure how that plays into your current or potential future situation.

    Although I acknowledge it's getting tougher to get FHA loans under the price limits in areas you might want to move to in Oakland.

    I own and operate in Oakland and Richmond. So far, so great! But I think a lot of that was taking advantage of the economic cycle, and accordingly, I'm not a fan of buying as unemployment approaches record lows.. I prefer to buy when unemployment is high, and just ready to improve.

  • Residential Real Estate Broker · Paso Robles, CA · Member since 2015 · 196 posts · 58 votes
    10y

    Welcome Sim. I'm just branching into the East Bay scene myself. Excited to learn together.

  • Investor · Richmond, BC · Member since 2013 · 316 posts · 133 votes
    10y

    Hi Sim.  I'm just posting to comment on what great feedback you got.  Did you get a chance to listen to the webinar on investing in duplexes, triples,  etc this week? I'm not "Pro" so I can't go back and look at past webinars but I do have the link until this Friday night if you'd like it.  If so, just send me a "colleague request" under "connect" and I'll send it.

    I'm from Canada so I'm not sure what FHA loans are like, but here, if you're self-employed, the bank is more inclined to give you a mortgage if the property makes its own money. (Banks here do not have faith in the ups and downs of the entrepreneurial spirit).

    Best of luck with your endeavor!!

  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    10y

    Hi! @Sim PeyronWelcome to BP. In your area you have residential multi-family properties (2-4 unit) which would be a good start. You can get a 30 yr fixed loan at a low rate, and multiple tenants to spread your risk.

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Sim Peyron

    Welcome. You have received some excellent advice. Fill in the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 100 past ones to catch up on.

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com

    Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good Luck

    Paul 

  • Oakland, CA · Member since 2016 · 3 posts · 4 votes
    10y

    First, I want to thank everyone that welcomed me when I posted a couple of months ago. I have been keeping my head down, doing research, and getting to know the surrounding markets. I made the mistake of keeping quiet and I will not do that again!

    I have been looking at different REIAs in the area and would like to start attending asap to get to know other investors in the area. My goal is not only to glean info but to  build mutually beneficial relationships! Thank you for the great direction you guys have pointed me in and I hope to meet as many of you locals as possible!

    That said, does anyone have any recs as to which REIAs are good for networking in the area? There is a litany of options online and I would like to avoid those that slant towards selling more programs, services...etc.

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