All Forum Posts by: Aaron Gomez

@Victor S. - $1M will get you very different things depending on the area. I'd prefer to get a small 1br condo in a nice area than a decent place (2 bd house?) in a bad area or somewhere far away. This can be had for far less than a million in desirable places. Sadly, it's a very common and accepted practice in SF to turn living rooms into bedrooms - and that's a fantastic way to gain an extra $1500+ per month toward expenses.

Lots of great info, everybody! Bummer to hear that 50k is the max for 401k (I feel a little stupid for not already knowing this - but this is why I'm here!) but it's definitely better than nothing.

About my personal finances: income has hockey-sticked up and to the right and will likely stay that way - so I don't have enough saved for a house but feel comfortable with my situation moving forward. About the market here: entry level places start around $500k in San Francisco and I'd be aiming for that ballpark. About my investment and life goals: I intend to stay here for a while and this would be my primary residence. Instead of continuing to stuff money into stocks, I'd really like to diversify while enjoying what (in the long run) is pretty much guaranteed appreciation in this area.

Cheers

I have a sizeable 401k but my Bay Area rent is putting a damper on my ability to save quickly. I'd like to buy here and potentially house hack, but it seems as if I'll be saving for years if I rely on only my savings, whereas I could use my 401k to get over that huge hurdle. It really feels like the down payment is the barrier to entry, not the monthly payments.

Nothing is 100% sure, but it seems most likely that the stock market (and thus 401k) will take a sizeable dip soon whereas SF real estate will be minimally impacted - therefore this problem will be drawn out for many more years if I don't act soon.

For someone who is very financially stable but simply unable to get past that barrier to entry - is it a good idea to borrow from one's 401k to get into the market? 

I'm currently living in California and would like to start investing near my relatives in Michigan. I'd like to do everything from an LLC for peace of mind - should I register the LLC in California, Michigan, or another state?