New member from San Francisco, California

[Paul Ryan]

'ello everyone!

My name is Paul-Ryan and I'm new to Bigger Pockets.  I'm looking to figure out how to build a portfolio of properties to provide long-term income to eventually be able to retire. Although I live in San Francisco and rent out two rooms in the condo I live in, it's not a practical or financially feasible place to purchase rental property so I'm looking at doing this outside the bay area.

It's easy to get information overload while going through all the information. I don't know how to assess what areas would be the best - or even reasonable - to purchase properties to rent out.  People talk about forming a 'team' and finding a good real estate agents to help, but having never done that...is it just a hit and miss kind of thing?

Some of the things I read say that income property should be producing 10-12% of mortgage to be a sound investment? does that sound accurate? Any suggestions on things to read or insights are greatly appreciated!

Paul-Ryan

[Andrew Syrios]

Welcome aboard Paul! I have never looked at things in terms of percentage of mortgage to make a good investment. Usually I look at cap rate (we usually aim for a 10, but it depends on the market) or cash flow per unit (we aim for $75-100+ per unit per month).

[Sydney Hall]

good morning paul, welcome! newbie here too. i hear you on the information overload. just wished to introduce myself. formerly from washington, dc, i'm just getting started in the staging arena in california and i'm looking to make some connections as well. thanks and sincerely, sydney

[Jo-Ann Lapin]

good morning

I saw your post. Building a team is not hit or miss at all. You have to network and be in the know. I am happy to assist and point you in the direction for you. 

[Rudy Jimenez]

Welcome Paul,
I'm a realtor and general contractor we have a couple of townhomes listed in our office that fit what you're looking for please feel free to contact me. Good Luck Rudy

[Gabe C.]

@Paul Ryan welcome! I am doing the same exact thing. I'm in SF buying rentals in Raleigh, NC. It's 1/10 the price and easy to scoop them up if you have a good team. Do you know any areas outside SF like the back of your hand? If not Sacramento seems drivable/affordable too.

I tend to buy in appreciating areas without trying too hard, and focus mainly on cash flow. You can try the BP calculators to analyze a few properties and get a sense of which numbers to worry about. Feel free to PM me if you want more info.

Also, some good books to check out: The Millionaire Real Estate Investor by Gary Keller, and Building Wealth One House At A Time by John Schaub were crucial for me. In that order. The former is a comprehensive breakdown of soup to nuts and the latter has some overlap, but is more like talking to a mentor.

[Penny Clark]

@ Paul Ryan, Welcome to BP! If you're considering investing outside your area, start researching those areas by zip code using city data.com. Before you can find and form your time, have a specific set of parameters: SFH, multi, condo; neighborhood type to invest in A, B or C, buy and hold or fix and flip, private money or conventional. Once you know exactly what you want seek out those who can help you get it. Get recommendations from other investors in your area of interest for Realtors, property managers and contractors. Then set up a meeting with that person. It will take time to form a team you are comfortable with and one you trust.

[Account Closed]

Hey @Paul Ryan!

I am a local agent in the Sac area and come across properties every now and then. Feel free to email me to see if we can find you something here

-Sophia Morris

[Brad Johnson]

Hey @Paul Ryan,

I'm in the same boat as you (new investor living in San Francisco looking at other markets). I'm planning on going to a meetup this Thursday on Market. If you wind up going we should talk.

https://www.meetup.com/REmeetup/events/232437183/