All Forum Posts by: Dan Portka

@Alexandru Guna Welcome to BP, you've come to the right place for help with real estate investing! I wouldn't focus too much on rent to price ratios here in LA, we're looking at sub 0.5% in most areas. Where we see most of our clients have success in socal is house hacking. Because owner occupant properties allow for low down payment, you can control a $1M property with say $50K down while having your mortgage subsidized by tenants (if you buy right it could be cheaper monthly than renting). When compared to non-owner occupant you're looking at 20%+ down so $200K on that same property (and you'll likely be cashflow negative unless you put a much larger down payment). If over the next few years your property increases in value to say $1.1M, you've tripled your equity in the house hack scenario as opposed to a 50% increase in equity on the straight investment scenario. I'm happy to help share how we analyze house hacks vs other rental properties if it interests you.

@Frederick William San Pedro and parts of Long Beach still have small multi's available for around a million in solid working class rental neighborhoods. Happy to help provide additional info if you'd like.

welcome @Oscar Linares ! Books and podcasts are the best way to start learning in my opinion! Figure out your goals and which strategies align with them, then dive in!

@Shri Kanase What's your current living situation? 

If you're paying rent you may be able to reduce your housing payment by house hacking. You'll also get the benefit of putting lower % down since it will be owner occupied, this can really help compound the returns on your $100K.. especially with how high CA appreciation has historically been. House hacking is generally seen as an easy way to get your feet wet with real estate investing.

If you're living w/ parents or essentially rent free and intend to continue that for awhile, I agree investing outside of your local market (even out of state) might be best. The advantage you have is that not many small time out of state investors have $100K to play with - you'll be able to buy multiple smaller/cheaper properties or a nice 2-4 unit.

@Mario Fernandez once you have narrowed down to a few different out of state markets, network with as many investors, PMs, agents, as you can - talk to someone new over the phone every day. Your team is EVERYTHING in out of state markets, so make sure you're confident in who you choose to work with.

If vacancy is a concern, consider small multifamily properties 2-4 units. That way if you have a vacancy you still have rent from the other units coming in. One thing I've noticed is that new out of state investors seriously underestimate repairs and turnover costs especially on properties in the ballpark of $100K.

Alternatively, House hacking is a solid strategy in CA. Save up for a 3% downpayment on a duplex in your area live in one and rent out the other unit. You'll be able to qualify for a higher loan because they take into consideration a portion of your future rental income.

@Alfredo Velasco I'm assuming you want to be a real estate agent since you've posted in this forum? If so, you're going to get tons of brokerages reaching out to you when you start taking classes and obtain your license. You'll have options. Start doing some research into pros and cons of the different types of brokerages, figure out your long terms goals, and look for one that offers solid training/development opportunities.

@John B. I've done 5 out of state BRRRRs and only saw 1 before I purchased it. The one I did see before purchasing just happened to be a potential deal that came up while I was visiting the market for the first and only time a couple years ago. I always get a professional inspection and as others have said, get someone else you trust to go see the property. My PM will go to the property for me and give his thoughts - potential rent, estimate on rehab cost, neighborhood quality, etc. Contractors are good people to lean on as well, although it may be difficult to find one to give you a quote before you're under contract because of the amount of time it takes them (I've paid a contractor before to get me a quote on a property before). 

@Gabriel Sanchez Don't really have enough info to help. Some things I'd recommend thinking about:

- What are your investing goals? Cash flow, equity growth, passive or active, etc.

- What's your current living situation. Rent or own? If you rent, you may want to consider buying a primary residence. Do you qualify for a local purchase? Perhaps a house hack strategy would be good to offset some/most of your mortgage payment. Remember you can house hack with as little as 3% down.

- Do you know any real estate investors/agents/PMs in other markets that might be able to help guide you? If so, this helps break the barrier of entry into further away markets.

@Christopher Rogers In most cases I prefer white. It seems to brighten up every room and a fresh coat of white paint makes everything feel more clean, both of which are attractive qualities for prospective buyers when they view properties. For those that dislike white paint, we portray it as a "blank canvas"

reach out to Jordan Holt [email protected]. One of the top buyers agents in AL, he's great to work with.