All Forum Posts by: Drew Slater

@Mike D'Arrigo Thanks Mike, I'll shoot you a PM!

Thank you to everyone. There was so much great feedback from this post. You guys are awesome!

After reading all of your suggestions, I definitely need to go back to the drawing board and come up with another strategy. Going the conventional loan route and trying to find a SFH or Multi-unit in my area is just highly unlikely given the cost of my area.

@Adriel Liwag Great job on this deal man!! Where did you find this deal, MLS, auction?

@Vinay H. Thanks Vinay. I should have defined my goal a little more clearly.

Initially I wanted to just buy something and rent it out with a decent cash flow. Not just anything. Something that I felt was valuable after doing research in the area. That was why I was initially drawn to the 29 palms area. It is affordable, the National park is gaining in popularity and brings a lot of business to the area, the city is investing heavily into a downtown revitalization plan, there is a military base nearby with a constant flow of military personnel living offsite, etc...

Problem is, I can't technically be "owner occupied", so that is basically off limits for now. Even if I tried to justify it to the lender that I could commute down to San Clemente, I wouldn't honestly make that drive everyday.

Part of me is eager to get started, because I am worried that after a few months of not doing anything actionable this dream will just fade away. But at the same time, as I learn more and more, it seems like I should just wait on the sidelines for now, keep researching, saving up some cash, and let the market cool off a bit...and act when it really makes sense.

@Brian Garrett Thanks man, I will look into that. I have been using Trulia and Zillow to look at properties. Would you recommend these as good resources for finding Seller Financed deals?

@Vinay H. I agree 100%. It is a difficult situation, especially having grown up here and lived here my entire life. I guess I should get a better paying job! Lol. But as you said, even if I could afford a place, the cashflow from renting it out would be an issue.

That is what led me to the desert area, which is my next dilemma. I can't get a FHA/Homeready loan for a place that I can't live in.

Looking for advice on some alternate solutions that I perhaps have overlooked, in terms of financing or strategy.

Thanks @Ezichi Oha, I will check those areas out. I live in San Clemente and it is expensive here!! Cheapest house is probably 600k.

@Caleb Heimsoth I agree with what you said Caleb 100% about California. I would love to invest out of state, my only issue is due to what I mentioned before. The houses I am looking at are in the 100-150k range and are 3/2.

Under the HomeReady loan you have to live in the property. So doing that drive everyday would probably kill me! My strategy would be to buy a multi-unit property. Given my current salary, I highly doubt I will be able to afford a duplex in my area.

Maybe I should focus on making more money at work instead!

@Michael Kistner Thanks for the pointers Michael. I am not sure what % of my time needs to be spent there, definitely something I will look into it. 

@Caleb Heimsoth Thanks man. That is kind of the issue. I would have to move further away in order to owner occupy anything that I could qualify for. But in doing so I would have to quit my job. And if I quit my job I won't be able to get a loan. 

Hi everyone,

This is my very first post. I would like to start off by saying how much I absolutely love this community just from everything I have witnessed over the last few weeks of scouring the forums. It's amazing to see people going out of their way to help others out!

My question is fairly straightforward. I live in one of the most expensive areas in the country, Southern California (specifically Orange County). I make a modest income, nothing crazy, but am very smart with money and do not have much debt. My issue is that for my first deal, there is no way that I can afford to buy a place within a reasonable distance from my home town and place of employment.

I was thinking about starting off by purchasing something out in the desert (29 Palms area) where it is much more affordable. But to be honest, I am using a HomeReady loan and do not see myself actually moving out to the desert and driving 2-3 hours to work everyday. I also do not want to rent the place out and get in trouble for mortgage fraud...

I am eager to start my real estate investing career, but am not quite sure how to overcome this dilemma. Any pointers or feedback would be greatly appreciated.

Thanks again!