Newbie ready to learn: San Diego / Vermont

Newbie ready to learn: San Diego / Vermont

Investor · Danville, VT · Member since 2015 · 34 posts · 33 votes

Hello Bigger Pockets,

I'm a  high school teacher from Vermont who is currently administrating and about to inherit two properties in San Diego. The properties are paid for and are currently rented and managed by a local property management company. As the sole heir, I am about to complete the probate process after which these homes will become my assets. I am looking to transition into real estate investing as a way to replace my modest income as a teacher and build wealth. I know that I have been given a significant leg up with the leverage provided by these properties, but I am also aware that I have so much to learn. I am amazed at the differences between my local real estate market, NEK Vermont, and the area where my properties are, the Clairemont Mesa East neighborhood of San Diego. I'm interested in learning about how to find a niche, how to leverage the equity in these houses in order to create more passive income, and how to manage all of the tax implications. I look forward to learning and connecting.

-Matt

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  • Trexie E.Pro Member
    BiggerPockets Support · Davao, Davao del Sur · Member since 2015 · 937 posts · 163 votes
    10y

    Hi @Matthew Ware,

    Welcome aboard! We're so excited you're here and making connections. Have you read The Ultimate Beginner’s Guide to Real Estate Investing? We wrote it with the beginner in mind. It’s an excellent place to start, and can answer many of your questions. You are in the right place to learn all about real estate investing. Do you know what sort of investing you are thinking of doing? BiggerPockets has a FREE webinar every week. Presented by the BiggerPockets Podcast co-host, Brandon Turner, it covers a different topic every week. Sign up here for the next Webinar. Most webinars are recorded and a replay link will be sent out to anyone who signs up. Please don't hesitate to reach out if you have any questions or clarifications. We are always happy to help!

    BiggerPockets
  • Investor · Danville, VT · Member since 2015 · 34 posts · 33 votes
    10y

     Hi Trexie,

    Thanks for the welcome. Yes, I have read the Beginner's Guide. I've been lurking for a while and just decided it was time to take the plunge and put myself out there. I'm not a big social networking guy, I'm a somewhat shy 44 year old, so it took me a while to decide to give it a try. I've bought the Bigger Pocket's rental property book along with a few others and am starting to learn the acronyms. I'm signed up for the webinar this evening and look forward to it. 

  • Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
    10y

    @Matthew Ware Welcome to the BP community!

    I work with the legal community throughout California however I'm pretty dialed into the four (4) Bar Associations Trust and Estate Sections in San Diego county and know many if not most of the 200+ legal practices.

    While I live part time at my ranch in North San Diego county, I don't spend tg still much time near downtown or suburb and like Claremont Mesa however I am somewhat familiar with them. 

    If I were starting, I work begin with buying the real estate principles course. I like the way the one from First Tuesday publishing is written. Then I would call then drive to meet Ward Hsnigan in San Diego - Mission Gorge and take on of his 1-on-1 training courses in the niche you wish. He does not teach probate, nor is that a good niche for a beginner IMHO.

    Lots of dream merchants want to take your money and teach crap. And I'm sure I upset the BP moderators when I declare that reading and posting online us no substitute for real education. So, you'll need to wear your BS detector anytime reading or attending anything real estate related(!).

    Send me a private message if I can be if help and point you in the right direction..

  • Investor · San Diego, CA · Member since 2014 · 180 posts · 72 votes
    10y

    My advice is to go slowly. Your monthly income should go up significantly with the addition of the 2 properties. Do you really need to leverage into more passive income, or are you better off just collecting rents on the 2 properties and continuing to work at your current job? 

     As Rick pointed out above it can be shark invested waters with lots willing to take your money with little in return. To leverage you will need to sell these and buy more properties with a supposedly higher cash flow or take out loans and try to buy more. Lots of expenses either way that may make it difficult to do better than you are right now.

  • Investor · Danville, VT · Member since 2015 · 34 posts · 33 votes
    10y

    Hi Ron,

    Thanks for the advice. I definitely plan to take it slow and will not be rushing into any shark infested waters without proper training. But I must admit your comment is not what I wanted to hear. Can't the equity of these houses be tapped into so that I can buy more property, assuming I've done my homework and they cash flow? Isn't that how the game works? The rent is great and all, but I feel like if I do nothing with the equity in the house then I am losing out on one of the main advantages of real estate investment which is leverage. Am I making some sort of classic rookie mistake with this line of thinking? Should I just sell the houses now while the market is hot in San Diego, put the money in mutual funds, stop dreaming, and go back to my job? 

  • Jill DeWitPro Member
    Investor · Scottsdale AZ · Member since 2015 · 1k+ posts · 423 votes
    10y

    Hello @Matthew Ware and welcome to BP. BP is a great place to go for real estate information. BP also allows you to connect with other real estate investors. You came to the right place. You are not alone in your real estate ambition. 

  • Investor · San Diego, CA · Member since 2014 · 180 posts · 72 votes
    10y

    @Matthew Ware I would just hate to see you lose what you have that's all. Tapping the equity means either selling and buying more properties elsewhere or refinancing and pulling cash out which may be hard for you to qualify for. 

    Personally if it were me and I just had to make more $$ than the cash flow from these 2 free and clear properties provide, then I would look at your own backyard. 

    I'm guessing that the 2 properties have a low property tax base as well and you should be bringing in $4,000+ / month. Are they houses or condos? Do you know if you are getting the most rent that you can?

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