First Investment Opportunity

[Daizy Gutierrez]

Hello, 

My name is Daizy Gutierrez and my partner and I have been presented with the opportunity to purchase a triplex in the city of Lake Elsinore. The asking price on this property is 609,000. This is our first investment and need some advice. We feel the property might be overpriced since we just saw a fourplex listed for 465,000. Our broker believes the property value will increase over the years and has a potential for additional units since it's considered a commercial mixed use. We live in the Orange County area, so if anyone is familiar with the Lake Elsinore area we would appreciate any advice, or just any advice in general would be great :) Thank you.

[Joe Homs]

@Daizy Gutierrez RUN!  First of all its does not really sound like this agent knows what they are doing giving you advice like "value will increase,"  "has potential," "additional units," etc.  I would suggest that you educate yourself first before you make such a large investment with a "buy and hold" mentality.  Work your numbers and make sure its a "positive" cash flow, which is really rare right now in California.  Ask lots of questions or better yet ask a more professional investor as to their opinion of the area.  I just purchased a property in Lake Elsinore, but that was from a 1031 exchange I made.

Good investing...