Thinking further ahead

[Trayvond Andrews]

Hello BP world. I'm new to real estate world in taking action but not in research for it. I'm 25 years old living in Sunny California with a decent regular job. As we all know when it comes to investing in California it's pretty hard. I've listen to hours of my favorite Arthur Brandon Turner on house hacking and turn key rental and the brrrr strategy. One that caught my attention the most was real estate from a distance so my question to this forum is, I can't afford a fixer upper much less a regular rental property in California, I ran the number used the no calculator and still didn't make sense. So I said let me go out a little further to the Las Vegas market. I thought of purchasing a 2 bed condo for around 88k and putting a tenant inside. Realistically I say the mortgage would be paid off in nearly 4 maybe 5 years. Then, I'd pull the 75% HELOC out this condominium to put two down payments of two multi family homes in SoCal or even putting one big chunk down payment on one and doing a house hack in the other with little to no money down. Any ideas or suggestions while doing this?

[Stephan Kraus]

As a local investing in Vegas:

buy and hold investing is getting tough in vegas with purchase price to rent ratios spreading further and further apart. BRRRR is the only way i'd still consider this possible, but deals are rare, competition for those is fierce - i hear about 1/3 of all purchases are from investors these days.

You (or someone you know) need to know the areas and where to invest, and where to stay away from. Condo's can be great, but if you're only out for cashflow then why not look further east then vegas, like Indianapolis, Cleveland & the midwest in between for example? your 88k can yield a better rate of rental return there, i would only consider vegas if you're also eyeing on appreciation as well - but that may be vanished now, due to the crisis for the foreseeable future 💁‍♂️

Don't get me wrong, im still buying here (looking at a 100k condo tomorrow morning actually), but mostly for a flip - not surr this would also work ad a hold. 

If you decide on any area make sure you find a team of people you can trust, and then never trust them & verify everything 😝