All Forum Posts by: Jason Holtzinger

@Jason Holtzinger

A couple thoughts from a "neighbor" to your immediate south who has invested both locally and out of area:

1. "Landlord friendly state" is a misnomer.  State laws set unlawful detainer laws but policy is dictated at the very local level.  In handling an eviction, I would trust a judge in Sonoma County way more than some Democratic machine appointed hack in, say, Cleveland to get a fair result.  

2. $200/month seems like a very low bar.  Your capital expenditures over 5-10 years will almost certainly wipe out all of your income, especially in environments that experience harsh winters.  You will spend more on gasoline in a month at current prices.  I wonder whether you have thought through your goals.  Sonoma and northern Marin are expensive but the long-term benefits that flow could fund - a typical Terra Linda fixer should yield $60,000-$70,000 in gross rents - a retirement if you play your cards right and show some patience.

Cleveland has been the #1 rental market for about 10 years. 100s of investors from Ca invest there. 10% + NET ( based on cash purchases )  cap rates are to be had, 100% hands off. Its all about your team and knowledge .

BTW you cannot do flips. You do not have crews, or the knowledge. Lets face it you are not going to swing a hammer. Many think they can just go out of state and higher some GC to run there 200-. 300 500k flip, bad idea. 

All the best 

Location crime rate, average salary, unemployment rate, and are you willing to fly there twice a year? I discourage buying lower priced real estate and managing from far away with PM. I would never enter a syndication or those fintech shared real estate dreams.

I started with contractor license and kept my day job as lender (60 hour week) and found opportunities along the way. A house in Hayward that's a wreck with acre lot and rehab and add a unit, hold long term? Morgan Hill might be too far for you but is driving distance to Santa Clara/San Jose. Look for something under $650000 in a neighborhood where the elementary school is blue ribbon. Where are the big paying jobs near Santa Rosa-~~ San Francisco and San Jose. I love Kenwood maybe you can find a duplex where you set up wifi for remote workers?

I was born in Cincinnati and have a daughter Dr at Cleveland Med Center I would not invest in Ohio as your starting point. The Rust Belt will suffer with inflation, jobs are not increasing. 

Keep saving money. If you are married get the partner working on the plan. 

Quote from @Paul E Romero:.  And another tip I have for you, NEVER sell your home in the Bay Area!  Equity builds up fast here and you can use that to buy homes out of state!!!  <----

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Exactly, this the key here. Like I keep saying this, If you want to build wealth buy in CA for appreciation. If you want to pay some bills, buy cash-flows market.

You could make a such strategy that you could virtually live for free where all your CA mortgage will be paid by OOS investments (or any indirect CF flow, such as debt funds or even REIT)

It's extremely even more important if you have family and serious about generational wealth transfer. Only in CA a company could give 200k job for non-manager position so they could get a good job easily here. And helping the family not to struggle that much in the future is by securing them portfolio of houses.

If you own a construction company why are you not flipping homes? Being you don't have much time I would look into buying turnkey properties.

Okay, interesting. I'm working with investor clients who I find properties for. I had secured a duplex for them that had been fixed up, about a month ago.. 

$535k for two units, each earning solid $2400 per month in rent. They wanted it but got in their own way and asked for a 20 day pause, so they lost it to another buyer. Kinda painful to watch. 😑

Anyway, I have a nack for the research on finding the best places, would it be helpful if I sent you some examples? Then you can at least compare it to what's available in other places, if nothing else. 

No pressure, I just hate to do all that work and then nobody gets to benefit from it.. haha

I find solid duplexes for under $500k all the time, so staying under your budget is very conceivable. 

Quote from @Jason Holtzinger:

You're already working 80 hours a week. Do you really want to take on management of a property in the most heavily regulated place on earth?

Buy in another state and hire someone to manage the property. Better yet, invest in a syndication to get a similar or better return with no need to worry about tenants and toilets.

Hey Jason, just out of curiosity, what's your budget?
I know you didn't mention Arizona, but I'm just curious what sorts of options I could find you at your price-points since we do have some great options.
If nothing else, you could use it to help figure out if CA is your best choice.