All Forum Posts by: Becca F.

Congratulations on having the $100k saved up!

A couple of things that are concerning: you're still in college and you mentioned having a minimum wage job and your brother just started his W2 job that pays $45k + commissions. 

I wouldn't recommend putting $100k down on a $400k property. If you go this direction, all your money saved up went to a downpayment and you have no cash reserves for repairs, vacancies, and capital expenses. 

I agree with the previous comments about figuring out what your goals are in the next 10 years and reverse engineer - what do you need to do to achieve this? Not sure where you are in California, house hacking is the least risky but this would be challenging with the above current stated incomes. If your college major will result in a high paying W2 job, that puts you in a much better position in a few years. 

Out of state investing is not as easy people make it out to be. If you read a few of my previous posts, you can see how much money I'm losing every month in the Midwest. If you're going to look OOS, I would talk to Property Managers to ask what their rental rates and tenant base are and network with local investors (someone unbiased who isn't trying to sell you anything). Two honest PMs gave me assessments of my current properties. And fly to the area multiple times - if you can't afford to do this I would say someone isn't ready to invest OOS (any potential property issues are going to cost more than a flight, hotel stay and a rental car. Also anyone who gives you numbers, an agent, wholesaler, etc. verify this - many times they're very optimistic. 

Fyi... you said the magic words "Californian" be prepared to be inundated with DMs from OOS agents. I have nothing to sell you, just don't want you to lose money like I did. Good luck!

@Account Closed

Not sure if you're still checking BP but I agree with the previous comments on house hacking. I wouldn't buy foreclosures or flip starting out. 

I think Texas is a great market. I have several California investor friends with properties in San Antonio, Dallas and Houston. I also met a few investors who live in Texas at recent real estate conference - the advantage living there there's no state income tax and they're able to make the numbers work even with higher property taxes.

If Austin is out of reach even with house hacking, what about cities within a 2 hour drive?  I just Googled this and San Antonio is about 75 miles from Austin. If it were me, I would pick investing in Texas if I were living there over investing OOS in some random city. I wouldn't relocate to a cheap market either without visiting many times, doing tons of research and talking to local investors (some unbiased not trying to sell you anything). Good luck!

Hi Lacey! You mentioned that you were in GA. I recently attended a real estate convention in Southern California and briefly talked with an Atlanta agent. I also have a couple of California friends who invest in Atlanta. I visited Atlanta many years ago and I knew this area had a lot of potential for appreciation (before I knew anything about real estate) - one suburb that I was really impressed by was Alpharetta. I also have one CA investor friend with an MTR in Savannah (just bought less than 6 months ago).

You have your Fortune 500 companies: Coca Cola, Delta, Home Depot, UPS, Chik-fil-a, Porsche, CD. Then colleges, sports teams, film industry. 

This agent also showed me examples of homes that recently sold and their appreciation from the year they seller bought the home to 2024. The median price points she showed me were on the higher side $330,000 to $470,000 depending on the county but you could probably find lower priced properties (I don't invest in Atlanta so I don't know the breakdown of neighborhoods). Median sale price: $389,000 and rent $2000. For me I would rather have fewer high quality properties (Class A and B) than more less expensive properties (Class C). 

If you haven't already I'd recommend attending local RE meet ups so you can talk to people who are investing in the area as well as OOS and local agents. So you could invest pretty close to where you live, not sure how close you are to Atlanta. If you'd like that agent's name, you can DM me :) 

Hi Jimmy. I don't house hack in S.F. but one suggestion an investor had for me was to do one of the units as an MTR (I was thinking travel nurses but now I'm hearing that they aren't getting that great COVID pay but people displaced temporarily for insurance reasons, moving for some other reason). Mine is SFH, an LTR and my tenants are amenable to other people living on the property and I may consider building an ADU for that. The MTR was to get around the SFH becoming a 2 unit and under rent control with an LTR. Then someone said I could only MTR/STR if I'm living on the property have it qualify as a SFH with an ADU - I'm confused. I haven't researched this further since I'm dealing with my out of state properties right now.

The rental laws in S.F. are a huge maze to get lost in. If you house hack a 2 to 4 unit, I would assume your rented out units fall under rent control? 

Quote from @Jonathan Greene:

Why are people answering this? That is the most AI post I have ever seen in my life.

 LOL... It's Indianapolis where I invest. I won't respond to the OP. OP can look at my previous posts if this is real.

This is a switch from all the Ohio posts. Ohio agents are hitting hard on all my California investors and I posed a question for them.  I'm just laughing so hard right now - I needed that after crying about my real estate journey so far. 

Hi Natalie! I invest in the Bay Area and Indianapolis metro area. 

If you can invest within a 2 hour drive, you have more control with checking up on the property. I'm thinking Sacramento, maybe Central Valley (Turlock was suggested by my local agent). I wouldn't do Stockton if it were me - the higher crime areas are concerning. Maybe Manteca. A little longer drive, Reno. Vegas is also a short flight away. 

The short version is if you go with the Midwest or the Southeast, stick with Class A or B for appreciation. My Class A home (nice suburb with great schools) is doing well but I bought it in 2013 and it has doubled in value from 2013 to 2021. Class C is volatile - it can go well or badly. I fall into the badly camp (so far until the property stabilizes after 2 to 3 years),  lots of repair issues. I bought them in 2023. Don't buy a 100 year old renovated home (renovation done by the sellers, not me) - some people like old homes but it's been a huge headache for me. On paper it was supposed to cash flow, minimally at 7% rates. You can skim through some of my previous posts. 

I also DON'T recommend doing a BRRRR from a long distance unless you have experience with renovations. I've done a local renovation where I was on site multiple times a week. I made offers to BRRRR and an attempted flip in Indianapolis - decided it was too difficult so bought move-in ready (which really wasn't after the inspections). You need a trusted team and it takes time to build relationships, at least several months.

I would add property manager should be one of the first people to talk to - they know the rental rates of different areas and tenant base. Also network with local investors to get unbiased feedback (not anyone trying to sell you anything). Good luck!

Quote from @Jimmy Lieu:

Have tons of examples of deals that hit the 1% rule and positive cash flow. Happy to connect and to answer any questions you may have.

Hi Jimmy, are you able to post a specific example on here of a property that hits the 1% rule and positive cash flow buying in 2023 and 2024 (not in 2021 or previous years) with an LTR? I'm not sure of what the rules are regarding agent-client confidentiality but without naming any names or addresses, for example:

SFH#1 or Duplex #1, if this is Class A, B, or C area, purchase price, down payment, loan terms, monthly payment PITI, gross rent, property management fees, other repair or cap ex costs your client went through and the net rental income for this investor

If this isn't an LTR but an MTR or STR, now we're adding utilities, WiFi, furnishing the place, higher PM fees. If this is an issue posting this on a public forum, I'll DM you. Thanks!

@Nicholas J Mineo

As far as the ADU, I was considering that myself but if I do that my SFH is now considered a 2 unit and subject to rent control - San Francisco, Berkeley and Oakland are the worst with regulations. I asked a few experienced investors and if I do the ADU as an MTR or STR I can possibly get around that rent control issue, need to look into this. I was going to talk to a few contractors. I would think an ADU company would charge more. I'm assuming Sacramento might be a little more landlord/investor friendly and you wouldn't have the ADU issue and rent control with 2 units like I would.

As far as OOS investing you're going to get a lot of agents pitch their markets. We all have different financial situations, lifestyles, risk tolerances etc. I know a few CA investors that sold their properties and bought all OOS and are doing well. I personally wouldn't do that although I'm aware I would "cash flow" more on paper if I bought an apartment complex or multiple SFH/duplexes OOS vs keeping my Bay Area SFH rental. At this point I'm ok with preserving my assets and not losing anymore money and owning a few quaiity properties not acquiring more doors. Someone who is a very high W2 earner (e.g many of my younger tech friends) are fine with taking more risk, buying lots of OOS, scaling, etc.

There's no right answer for everyone, just be careful. Whoever contacts you on BP, agent, wholesaler, direct seller, anyone asking to partner with you, etc, please do your due diligence. Someone tried to scam me on here, asking to do business with him and lend him money in a double close. 

It's now 2 weeks later since the last comment. Anyone know what happened? He's out on bond and will there be a trial soon? 

Has the FBI responded to anyone? I've been dealing with kind of horrendous real estate situation so haven't filed an FBI report yet. I filed one with the FTC over 4 months ago - no response. 

Quote from @Jonathan Greene:

Quote from @Jim K.:

@Steve K.

As a matter of fact, I recently discovered $2.2 million dollars, found it in stuffed into Ziploc bags under the attic floorboards of a tear-down I bought at the sheriff's sale. I wonder, should I invest it in Ohio? I really need help deciding.

5, 4, 3, 2, 1...waiting on them.

 Go to my recent post in the Starting Out forum. I thought I was being very fair in my comments. I even offered my own analysis of a property I own in the Midwest.... waiting for an Ohio agent or investor's answer on this 1% cash flow.