Computer guy (Bay area) wanna start his investing journey.

[Harshil Patel]

Hello BP community. I am new to BP community. I was listening BP podcast actively since I got to know about BP community. This is huge ocean of very talented people. I am techie guy and have very little knowledge about real estate. Thanks to @David 

@David Greene and @Brandon Turner podcast. Each episode is unique and so many ways people get benefited out of BP. 

Everyone know for new investors Bay area is very expensive. I am looking to invest in next few months in real estate investment. I have few questions since I am learning.

1:) How to determine the average price for property in that particular area? ( Currently looking at websites like zillow /trulia). Are there any other ways?

2:) I have heard so many things about long distance real estate investment. For new comers we should focus on local area first as a first investment to get the knowledge?

3:) Which kind of options I should consider like 1-2 bedroom apartment or Single family home or multifamily home? The near future goal is , I am more interested in rental property investment.

4:) what are the financial options to buy the first property. Like I am aware of bank loan or FHA loan, Any other ways which can allow me to get the loan less than 20%. :)

Looking forward to connect with more people in San jose bay area. 

Regards,

Harshil

[Ali Boone]

Hi Harshil! Welcome to BP. I'm not in computers or in the Bay Area, but I used to be an engineer and I'm in LA... close enough? :)

1:) How to determine the average price for property in that particular area? ( Currently looking at websites like zillow /trulia). Are there any other ways?

In my experience, the best way to know about prices is to shop around. Shopping around will give you a feel for options and then it'll also help you to know a good deal when you see one. Just be cautious as you shop, especially if you're looking at Zillow and those, that's there's not really a good way to know the true condition of the property in order to know how it correlates to the listed price. It doesn't matter for initial shopping, but just keep it in mind.

2:) I have heard so many things about long distance real estate investment. For new comers we should focus on local area first as a first investment to get the knowledge?

Depends on what your local area is. If you're somewhere like the Bay Area, that is a very expensive place to take your first risk. Way more to lose. And since there isn't cash flow there, you have to be more strategic in how and what you buy in order to profit and to me, that's an advanced skill. But if you live in Kansas City, sure, buy local. But then if you do out-of-state as a newbie, what kind of property you buy and how you buy it (teams, etc.) will be crucial because high-maintenance properties from afar are dangerous.

3:) Which kind of options I should consider like 1-2 bedroom apartment or Single family home or multifamily home? The near future goal is , I am more interested in rental property investment.

Apartments usually don't pencil out because of condo fees. SFRs and MFRs can be good, but again it depends on what market you're in and what the numbers scratch out to be.

4:) what are the financial options to buy the first property. Like I am aware of bank loan or FHA loan, Any other ways which can allow me to get the loan less than 20%. :)

FHA will only work if you're living there, and it's not usually all that advantageous - at least with where we are in the current RE economy - because it's likely to cancel out your cash flow, or make it negative, with PMI and higher interest. You can always keep an eye out for seller financing, partnerships, etc.