All Forum Posts by: Chris Gouveia

@Edgar Sepulveda and @Alexis Hui a fellow Californian here- have either of you scoped out the central valley (Fresno, Modesto,etc.)? It's where I'm from originally- a lot lower cost of entry (and probably similarly lower growth potential though done well lately). Just trying to see if others have some experience/thoughts.

@Alvin Uy Thanks so much, good points all around.

Really worthwhile posts in here, thanks all. In a similar boat as a Californian checking out other markets (Denver primarily, but great to hear so many thoughts about other worthwhile starter cities). @Alvin Uy really enjoy your information and great work here in the homeland. As a starter, I think the entry costs are more intimidating, even in some friendlier areas of SoCal. But a good reminder nonetheless of the value of knowing local markets- definitely easier to stay close to home and you make a compelling case..

Welcome @Baptiste P., from another fellow newb on BP in the Bay Area. 

Challenge of the East/South bay is the price of entry and number of players makes it challenging to spot opportunities. Prices seem to be pretty maxed out in most markets anecdotally at this time. Sounds like you've got plenty of experience, best of luck!

Now is a great time to refinance your debt- I was able to lower my 6 figure debt to 3%, which has allowed quite a bit of freedom to look at other investment opportunities.

I know the scenarios given are often "but you could make 8%+ with that money!" Having been in BIGGER student debt than now, sometimes there's a mental victory from not feeling that weight. You have to decide how important that is to your happiness. Also, that's a guaranteed return of (insert interest rate here) v. investing which has risk in the best of circumstances. Lastly, if you need to take out a loan to REI, often your debts are incorporated in that decision and may disqualify you.

Make sure your earning potential is maximized, your other debts (credit card, etc.) are definitely taken care of, and then weigh the pros/cons. Best of luck!

Coming from California...all price points look good, so good to hear your feedback @Steven Rausch. For sure in the areas I'm looking at the price points have all climbed significantly over the past 5 years fairly consistently. Not to say there aren't still some values that I've seen anecdotally and still opportunities to be cash + on rentals. From my standpoint that could still be worthwhile as I'm not trying to do a quick flip and seems there is still room for population growth and development (again, I'm a novice, so this is just what I hear from people I know there). I have plans to spend a week there probably in the next 6m. I actually am in no rush, and if things cool nationally/locally, that's okay too just want to keep collecting info so that if/when things are right I'm ready (or if info keeps pointing toward 'long-term not going to appreciate' then move the target elsewhere. But happy to hear your thoughts on specifics.

@Mitch Messer my initial goal was central valley California because I still have some family in the area, and it's still on my list of places. Long-term appreciation felt very limited. We have some family/friends in Denver that would make team-building and keeping tabs on property easier. My Google based search of other markets was very South US heavy, which we have no expertise in and harder to get a lay of the land,etc. which was a tough barrier to overcome. Having spent time In Chicago, I looked but the property taxes and high HOA's of condo's there seemed hard to be net +. Happy to hear of places/information you think worthwhile (if I had a dollar for every city I researched...I'm sure that's common on here.)

I am a head and neck surgeon working in the Bay Area. My experience in real estate has been owning/selling a starter-condo in Chicago, a purchase of single family home in California, and a lifelong interest in real estate transactions/investing. After years of schooling (debt), I now find myself on firm footing and excited about the prospect.

My goals are:

1. Diversify investment holdings by adding real estate holdings (tangible goods).

2. Add ‘passive’ (cough:cough) income- start small with goal of eventual increase in quantity/quality with increasing knowledge/funds. As a starting goal, a 2bd condo or single family home (monthly expenses < $2000) with $2400 yearly net income.

3. Have fun. Make a point of enjoying the knowledge/experience. Avoid additional stress in this endeavor. Staying within means and not over-extending.

I consider myself a well-researched novice. My finances are in line and now I am hoping to learn from experts, build my 'team,' and be prepared for a worthwhile investment opportunity in the next year.

In return (beyond ear, nose, and throat 2nd opinions), I am a high-earning individual with good credit, ethical, a good sounding board, and won't waste anyone's time. 

**Also BP, THANK YOU for the beginner's guide.