Neophyte from Orange County/Los Angeles, California

[Chris R.]

Hello BP Family. My name is Chris and I am a counselor. Relationships, poor habits, stuck in a rut or just trying to sort out life, I help people make changes in their life. I have very limited real estate experience but I do have some friends/ family that invest in real estate. They generally buy out of state turn-key properties and have property managers.

I want to become educated in real estate investing. My goal is to have enough cash flow from my real estate investing to become financial free in the next 10 years.

I overhead someone talk about bigger pockets in the gym bout two years ago. I’ve been listening to the podcasts since then but I have not taken any action to make my goal a reality.   

I'm happy to be part of this community and I hope this will be a great learning experience for everyone involved! 

[Logan Allec]

Welcome, @Chris R.

SoCal can be a tough nut to crack for newbies.

A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

Also, have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!