All Forum Posts by: Abi Wegman

How did she react to your seller financing proposal? If she really doesn't need the income, maybe dig a little deeper into why she is keeping the property. As said above, before you can structure a deal that suits the owners needs, you need to have a clear definition of what those needs are.

I don't know enough about all of this to offer you anything solid, but could you just add your name to the title and go apply for a HELOC based on your credit?

What does it mean if it does not pass the 50% rule? It means this property may not have positive cash flow and you probably don't want to buy it. Of course the ratios are not comprehensive analysis but more like quick ways to rule out duds. Basically, it's not a deal. For ROI, by the way, you can absolutely still calculate it without positive returns. The ROI will be a negative number, which further tells you that it's not a good deal and you should pass on it. Good luck!

I was just listening to one of the podcasts, and the guest had a very good point. I mention this because I keep waffling on the idea of getting a license as well. Basically, don't get it until you need it. Same with an LLC. Right now, you don't have any properties. Will getting a RE license REALLY help you acquire that FIRST property? Personally, I don't think so. Use that $400 to find an off market deal, or find one on the MLS through an agent and just get that first deal. Once you get that ball rolling you can decide if it's worth it or not. Essentially, if you want to start investing, then all of your actions right now should be to help you START INVESTING. Don't get distracted by a bunch of things that make you FEEL like you're taking action. Good luck.

Hello @Raluca Ciobanu! I love how large the Bay Area presence is on BP. I've only been here for a couple of weeks and made my introductory post yesterday, but I have learned about two meetup groups in the area.

1) http://www.meetup.com/SF-Bay-Area-Real-Estate-Inve... - hosted by @Johnson H. I believe they try to meet monthly. They have a meeting this evening (4/5/16) in Milpitas.

2) http://www.meetup.com/REmeetup/events/229901915/ - hosted by @J. Martin. I'm not sure what the future holds for these meetings, but I believe they also try to meet monthly. Next meeting is Thursday (4/7/16) night in San Francisco.

I think these meetups will be the best way to network and make connections with local RE investors. 

Originally posted by @Ryan Landis:

@Abi Wegman welcome! You are definitely on the right track (and not alone). As you spend the next couple of months saving up for your down payment, try to attend every open house in the 2-4 unit space that you can. This will give you a really good idea of what "market" is. Depending on the units, you quickly will realize that things start to look the same and the area begins to influence the price more than the actual structure. Take some time to also read up on the rent control laws (there are some good posts on BP for Oakland in particular and living in a 2-3 unit as an owner occupant).

Hopefully we can catch up at J's meetup this week.

Thank you for the reply. I didn't even think to start going to open houses now, but that's a great idea! I'll definitely start filling up my weekends with open house visits as they come up.

The rent control is definitely a big topic. Every time I think I have my head wrapped around it I read a new thread or article and get sent back to square one. It's important that I get a solid understanding of it, though, as it will heavily influence the profitability of any potential purchases.

I'll keep an eye out for you on Thursday. I think 75+ people have already RSVP'd, so there's going to be a LOT of opportunity to meet people who are crushing it in this market. I can't wait!

Hello BP! 

My name is Abi (ah-bee), and I've been living in Oakland since August '15 and I grew up in Santa Rosa. 

My girlfriend and I are working as auditors in San Francisco, and looking to begin building our RE investing journey with an FHA loan on a 2-4 unit in about a year's time. We need that time to save up for the down payment and still have some money left over for living expenses.

We're drawn primarily to the Fix & Hold strategy, and while cash-flowing properties would be ideal, the more I'm reading the more I'm beginning to understand that trading cash flow for appreciation and equity might be a better route to take for long-term growth. It's also extremely difficult to find a cash-flow positive property in a safe area of the Bay with 3.5% down!

We're still quite young (I'm 26, she's 24) and our W2's can make up for any negative cash flow until the scale has tipped the other way.

We'll be attending @J.Martin 's meetup on Thursday of this week, and we're nervous and excited to meet some local investors!

Thanks for reading!