All Forum Posts by: Bradley Buxton

@Jessica Yuan

This is the classic question. If you buy a property all cash, you’ll maximize cash flow—but most investors use financing, which means interest rates and down payment size will directly affect returns.

Cash flow can quickly turn negative with major repairs or long vacancies. Multifamily properties like duplexes, triplexes etc, can help by reducing vacancy risk and boosting income.

In markets with strong appreciation, true cash flow deals are rare. Despite what some say about the Midwest, those areas often lack long-term equity growth. There are multiple posts about this.

 Buy in a market with consistent historical appreciation—typically where there’s limited housing supply, population growth, job creation, good weather, and proximity to a major airport. Aim to break even (or close), and look for value-add opportunities to build equity immediately and over time. Hold long enough, and paying down the loan builds both equity and future cash flow.

@Varsha Kgan

Roseville is a growing area, and the proximity to the mountains is a plus. New builds can have great incentives for rates or appliances. There is a cap at 2% for seller credits on an investment property so even if they offer you 30K on a 615k home, you can usually only use 2%. Check the HOA/CC&R to see if there are any restrictions on renting in the development or any restrictions on investors buying. Some new developments require you to hold the property for a year before renting it out. I just ran into this with an investor in Reno, NV. 4 bedrooms generate more income and can be easier to rent out if they are rare in the area.

@Cody Miracle

Use your VA loan to get a duplex in your local area. This way you can help offset the mortgage, you're not sharing rooms and if and when you move you'll have 2 sources of income from the property. In the future, ideally, you can refund out and get your VA eligibility back to use on your next purchase.

@Ronald Mejia

Building single-family homes often has a lower ROI than apartments. Land is expensive, and multifamily allows developers to maximize value by leasing up and selling based on cap rate.

In places like the Midwest or Texas—where land is cheap, flat, and regulation is light—SFH construction is more feasible. But in land-constrained areas like where I am in Reno, NV, we're seeing a shortage of buildable lots as jobs and people move from CA. As a result, existing single-family homes are becoming more valuable due to the limited supply. I have investors buying only SFH for that reason.

@Daniel Zarate

It sounds like you're using a VA loan on a property that's still under repair. It's usually smart to stabilize one property before moving on to the next.

The low VA interest rate is great for cash flow, but keep in mind VA loans are intended for primary residences. If you’re planning a house hack, you’ll likely need to refinance or switch to a conventional loan for your next property.

Landscaping is a good move—it can boost value and reduce ongoing maintenance.

@Craig Cann

Check your assumptions. The 1% rule is for drunks at a bar who do napkin math. You need to get actual rental data, local comps from the last 30 days, and get information on the future job prospects and long-term municipal and business investments in any area. Are your assumptions building in too much "cushion"? You can usually find out rents, taxes, loan payments, and insurance. There is always going to be a risk that you can't predict, so build a savings account for the unexpected.

Investing close to where is live is a big advantage because you know the market block by block. You can connect with the people that you need for your team who are also in the area. You can also have the option to self-manage if that is in your skillset.  There are advantages to investing out of state. As you have discovered, the time, energy, and travel costs might not be worth buying in a place you wouldn't want to live.

@George Gutierrez

I work with STR, LTR investors in the area, and I live in Lake Tahoe in Incline Village. I'm happy to give you a preview of the market, share analytics and go over the regulations.

@Marques Dredd

First off, thank you for your service.
California can actually be a great place to start investing. The best market is usually the one you know well, where you can commit your time, energy, and resources, and where the assets align with your goals.
While California gets its share of criticism, it still has a lot to offer:
Strong job opportunities, great weather and diverse landscapes, High demand—people still want to live in CA
That said, it does require more capital to get started, and there are more regulations to navigate compared to other states. I’m a former California resident now based in the Reno–Tahoe market, and while Nevada has big advantages (tax structure, growth, affordability), I still recognize the opportunities California presents.
On your path, it sounds like you're already in a good position with VA loan experience. Flips come with new risks and a learning curve, so starting locally makes sense. If you can leverage live-in flips using your VA loan, that's another edge that can help build equity while minimizing financing costs.
Find some networking groups in Riverside and hear others' experiences in the area.
Good luck—you’re on the right track.

@Ian Ross

Talk with an attorney about the LLC formation. It will be separate from the tax strategy. For the best tax advantages, talk with a CPA who specializes in real estate. CA will want their taxes but there might be some other options. If you need some references, let me know. I have them in CA and NV.

@Joshua Piche

Reach out to @Becca F. and read her posts. I think she has a good perspective on the pros and cons of in-state vs. out-of-state.  

Weigh the pros and cons vs the returns and the intangibles such as the time, energy, capital, and risk tolerance to invest out of state?