All Forum Posts by: Alex Chau

@Zach Quick

"You just need to realize that typically if you are getting a "deal" as an out of state investor that probably every local person who could close on it is passing on it because they could find a better deal. The cash flow isn't as stable and the tenant isn't as stable as you could likely find in San Fran. And count appreciation into your total return too, not just the "cash flow" because if you are buying turnkey out of state your only equity is your down payment(if that)."

@Zach Quick Hi Zach, I understand the point you are trying to make, but also understand that the entry points are way different. In the Bay area I would need about 200k for a down payment as oppose to 20k in the mid west, thats 10x the difference. For someone new to real estate investing that has a limited network and funding, 200k will take a while to save up or obtain. So yes even though you are paying a premium through turnkey, you are still cash flowing, compared to just saving money for a down payment, which could possibly take years. 

@Julie L. Hi Julie, I would love to hear about your experience in investing out of state as well.

@Zach Quick I am from California as well. While I do agree with you on investing where you live. Unless you have a good amount of capital to start with, it is really hard to start here. On top of that since the prices are so high right now, if there is a downturn you will have to cover the negative cash flow when rent starts to trend down (which is what is happening in san francisco right now) as well as lose equity. Yes you will get it all back in 10-15 years but in terms of return, would it not be better to invest out of state where you cash flow and and bring that return back to california when the market has bottomed out. Just a thought, as this is the route I am planning taking. Building a cashflow portfolio out of state, and bringing it back to home once things cool down a little more.

@Account Closed Thanks for the response. That is what I figured since I also live in a High Priced area.

Hi Guys,

I am 28 years old with no debt and a 75k job and about 100k cash to work with. So here's the thing, I know I want to get more involved with REI, but I live in the bay area. Would it be a good idea to move somewhere where the entry point is lower? With 100k I think I can do a lot more strategies such as BRRRR and flips in the mid west. Any suggestions and pros/cons as to why this would be a good idea or bad idea would be greatly appreciated.

Hi all,

For people with experience in BRRRR properties, usually what kind of areas do you look in. For example, suburbs or urban cities.

Hi All,

After listening to the many podcast on BP, I think that the BRRRR strategy is brilliant. My question is if that same strategy can be applied to the Bay Area as cap rates are so low here.

@Steve S. What part of LA do you normally invest in

@Steve S. Sorry I thought you were from the bay area for a second there, did not see Los Angeles there 

@Steve S. are the prices in the bay area. I would love to hear more details.