All Forum Posts by: Bryan Begun

We need to generate some more cash flow in our lives and we can go anywhere. But where to go?

I like surfing and she likes skiing in the mountains. 

We have three rental properties and they are in Sacramento, CA, Boulder, CO, and Newport, OR. We should consolidate but where?

Most of our family is in CA and one of our criteria is to be 1 day or less drive time from them. So we will eventually sell and part ways with Colorado (where we live now).

I've scoured the following markets: Reno, NV, Salt Lake City, the Oregon coast, Bend, OR, Sacramento, CA, Lake Tahoe (CA/NV) and touched on most places in between. I've put 4000+ miles on the truck in the past two weeks (and more last winter) driving the western US and window shopping many towns and markets. I love walkable towns with great vibes and vibrant communities.

We are looking to buy multifamily properties and get away from long term single family rental houses. We'd like to try a short term rental but the Oregon coast and Tahoe (two places I love) are extremely restrictive on doing this. Reno makes sense from a tax and insurance and economic growth perspective and also proximity to family but it's not a place I've fallen in love with despite spending two weeks there (one week last winter and one week more recently in the summer). On paper Reno is the best fit. In person its a place I could see maybe doing an investment or two in but its not where I really want to set up shop (I mean that literally; set up a home and also set up a wood shop - so I can build custom cabinets and stuff).

If Santa Cruz, CA ever goes on sale then I'll go there and suck it up with CA laws and cost of living, but for the foreseeable future it is not even a remotely viable option; I looked at a fourplex there generating $10k in monthly income and priced at $2,700,000. 

I do most of the work on our properties myself so any advice about investing out of state for better cash flow is not my jam. My jam is to build and improve to get better equity and cash flow through value add. 

So the question to the community is this: where is there a decent supply of multifamily properties, investment properties, and also nearby amenities such as the ocean or the mountains? Where is that vibrant community of wonderful people and walkable neighborhoods? What are the easiest places to fall in love with where one might also flourish doing a little real estate investing?

Here's my vote: 3-4 paid off rentals sounds great. So does your existing two rental properties that are each cash flowing positively. I don't know what your goals are but whatever they are you're well on your way. I like the Small and Mighty Real Estate Investor. I also like anyone who is working hard to make their world and the world around them better. Real estate is awesome because creating good housing is a worthy pursuit; not only can you make money at it, but you can provide comfortable housing in good repair that serves your tenants well and bolsters the neighborhood and community. It does sound like your income goals will require more properties but you probably don't need a vastly larger portfolio. It can be modest but good. Keeping your leverage in check and having cash reserves will help ensure your ability to withstand any bumps in the road. Keeping your properties in tip top shape will help ensure they are always desirable rentals, ones that tenants move out of reluctantly, if at all, and where vacancies dont last long. 

My personal strategy: slow but steady, select the best neighborhood possible, the ones where everyone wants to live, ensure the local economy is robust and growing, renovate to a high standard, and don't overleverage or overpay at acquisition. Focus on long term rentals as a baseline strategy but reserve the right to juice cash flows with a medium term or short term strategy. Overall, this strategy will not get you rich quickly. But it will do so slowly. And your portfolio will be rad.