All Forum Posts by: Charles Renn

Hi @Hannah Paitchel,

There is a lot of good feedback here already, but I wouldn't rule out a local investment either. Having your first investment close to home or as your home can lower the barrier to entry. Of course at the $150k price point you'll be better off looking in the mid-west. Start building your team out there and using the forums to vet agents, property managers, and contractors.

In Los Angeles, a house hack might still be possible. It seems like you might be familiar, but we focus on househack/small multi-unit properties and are finding success with our clients. The barrier to entry isn't as high as it might seem. 

Hope this helps!

Hi @Sam Albury,

Just a brief thought, but it's great to hear they want to move. The obstacle is finding them a place to rent. If you haven't already, I'd recommend asking your agent to help in their search. The agent should be motivated to help since he'd be able to get your house listed sooner. 

Feel free to share where the home is located and I might be able to add more value to your situation.

Hope this helps!

Hi @Nicole A., 

There is a lot of good feedback here. If I was to add anything, I'd say that according to some economists the strong housing market will continue for another year or so. I say this because that $400k+ house today will be worth another 5%+ next year before the market cools off. 

Definitely check with local real estate professionals to get more accurate numbers, but in my example you'd gain about $20k in equity over the course of the year. Whereas renting, you could be paying an additional $400/month.

Another way to look at it is an estimated $400k mortgage is around $2,500. If you rent out a room, maybe you're paying less per month house hacking toward your mortgage than you're currently paying in rent..?

Hope this helps!

Good morning @Dion Burke!

A lot has been said already on the topic of investing in SoCal, but it really comes down to your level of comfort and means. Assuming you have some financial ability to buy here, here are my thoughts: Do you want to share a home with a stranger paying you rent, even a friend/family member? If so, a single family residence can make sense. I have clients house hacking condos. Like John said, you likely won't cash flow at the beginning, but once you build equity and use that to buy your next properties, cash flow is possible.

Now if you want a separate space like a duplex, there are options here too. (If you need help find a lender who understands house hacking, I'll send you a referral.) Your lender should be able to calculate additional income from the second unit to add to your price limit. This allows you more purchase power since you'll be receiving rent from the 2nd unit. 

In the end it's a matter of financial ability and preference, but it can be done here. Investing out of state may get you started cash flowing, but if you haven't started investing yet, you have to ask yourself what your level of comfort is.

Hope this helps!

Hi @Murphy Quinn, I grew up in Salinas and have some connections in the real estate market specific to investing. If you're interested in those connections, please DM and I'll be happy to chat or share the information. Have a good day!

Hi @Jake Yates, there is a lot of good information already listed here. What I can add is to look for properties that have been on the market for a while, over 30 day. Sure there might be some issues, but as an investor you're looking to solve problems. Real estate agents can help with specific criteria, but know you'll need to overcome some challenges and put in a little more work. Typically these types of properties can pay off if you do your due dilligence. 

Hope this helps!

Charles

Hi Bruce,

Thanks for sharing your thoughts and interests! It sounds like you have a good head on your shoulders which is a great start to real estate investing. There are a few ways to go about kickstarting your investing career, but starting with a local duplex or SFR seems like a great first step for you. Depending on your level of comfort in renting out personal space(SFR) or just part of the property(multi-unit), a house hack seems like a good fit if you qualify for an FHA/Conventional loan. At the capital level you're considering, there are deals in North East LA. I'd recommend starting with a house hack, and deciding how much work you want to put into it. If not a lot, you'll be committing more up front, but less down the road. If you have a knack for fixing things and want the experience of remodeling, there are many options in those neighborhoods. I've lived in the area for about 15 years.

After a couple years, you can move out, refinance, and repeat, or take the money and start investing out of state.

There are some solid options, but if you'd like to discuss further feel free to message me.

Hi Rennon,

Great first name, by the way!

There are many steps you should take in your due diligence process to verify the property is the right one for you, including tenant information. I recommend talking with a real estate agent who has experience with rental properties and working with tenants. Your agent can advise you on the particulars on how to get tenant lease information, proof of paid rent, and other disclosures.

Covid may add further challenges to the process.

Where are you looking to buy?

Let me know if I can be of further help!

Hi Kay,

Its true, socal prices are generally high. There are still opportunities to invest here. If you're open to a live-in investment, a house hack is ideal. My team focuses on this type of real estate investment here in socal. Another option is potential short term rentals near Joshua Tree or Plan Springs. My last tidbit to consider is the higher appreciation in California vs other states.

Feel free to reach out if you have any thoughts or questions.