Trying to get my feet wet in real estate

[Erik Tsou]

Hello everyone! I've just started reading about real estate investment about a month ago. A little about myself, I'm a physician living in Los Angeles. I am not the most financially savvy but hope to change that. I am working full time and being on call is really taking a toll on my overall happiness. I like the idea of creating a passive income stream where then I can take less call but provide even better care for my patients. I think real estate is the key.

Just a quick question, I am currently leasing an apartment ~3k/month.

Should I purchase a cheap property for myself (In LA its like ~$450 or so around where I live) first? I can at least start building equity rather than wasting all monty on rent. (meanwhile read and learn on bigger pocket) or should I just jump in and start looking for financial opportunities out of state right from the get go?

[Geordy Rostad]

@Erik Tsou

Welcome! I would answer your question with a question...  Which would you rather have?

1) An income stream of $3,000/mo from the cash flow of some of your out of state properties?

2) A stabilized mortgage payment that won't go up much except when taxes and insurance creep up.

With choice #1, you could afford your rent or afford to rent anywhere you want. OR you could afford to buy something and use that income to qualify.

Choice #2 is good too for some people. If you don't want to move around and you think prices are going to skyrocket in the next 3-5 years. Also good if you like to stay put in one place for a long time.

As a third option, you could buy a duplex or something to house hack. Maybe a split-level with a 2nd kitchen in the basement?