All Forum Posts by: Jay Y.

Welcome Taylor Jennings!

I was just out in Hamilton County a few weeks back. Lovely area! Indy is a great place to invest.

Welcome Serena Duong!

You'll find a wealth of knowledge on these forums. You can start by reading the awesome Free Beginners Guide and listening to some of the podcasts.

Yikes! $15k is lot to dish out for any program. I can't imagine any "education" really being worth that much since that's enough for a downpayment (in some areas).

Matthew Michalski

That's awesome to see someone so young already into investing for their future! You will go far. I don't know how feasible it would be to get into real estate at such a young age, but if there's a way, go for it!

Otherwise, what about investing in stocks? I started working at 14 and wish I would have put my savings into stocks at that age... low beta, stable megacorp dividend stocks. I probably would have had enough for a downpayment by the time I graduated college...

I'm aiming for 80% this year. I follow the extreme early retirement model. No, that doesn't mean you have to live a deprived life by any means either! For instance, I recently started biking to work and spent $0 on gas last month. Probably the best decision I've made so far this year (the financial savings were just a bonus).

In general, I'm just tired of playing in the cave... so it's easy for me to reject consumer spending. That and I'm addicted to buying rental properties :)

Welcome Cliff J!

I'm also from the Bay Area and understand how difficult it is to invest here. Last year was definitely much better as the numbers don't make any sense these days. More simply, you won't find any properties that cash flow.

Since the window is now closed, one thing I've been doing is looking out-of-state. There are many other markets outside of CA that still provide good returns and make sense.

I was referred to my agent from my brother who found him on a Trulia forum. So, even a simple google search can work ;) Send me a PM if you want a reference and I'll introduce you.

In general, I would only spend more on a better location if the numbers still made sense. For example, I'll take a 10% return in a great area over say 15% in an average location. There are some benefits like lower vacancy rates, easier to rent out, etc. I have one property in the hub of Silicon Valley and could probably rent it out in no more than a day using Craigslist if it ever went vacant...

Good luck!

Thanks for the feedback everyone. I should have probably been more clear in the original post -- yes, I do get company matching for 401k, and I've already maxed out most of it. I generally prefer to front-load my contributions each year. Also, I've been funding the 401k to the max since I started working, so my diversification into stocks should be sufficient.

J Scott Yep, I work in high-tech! There's a tech company on just about every block, or so it seems. If you drive down Tasman, you'll quickly see why it's often termed Ciscoland.

Thanks for the input. I find myself struggling with this as well. This year, I think I'll finally stop contributing to the max. I really would like to have more fund available for real estate investing.

In regards to ESPP, yup, I make sure to contribute to the max allowed. What I meant was I'm not planning on holding the shares long-term. I'm planning on cashing out all stocks (RSU's, ESPP, stock options) as soon as they vest.

I definitely want to make good progress this year. What can I say, I've been bit by the real estate bug and it's addicting! Here's what I'm planning to do to reach my goals (save downpayment for #3, maybe #4 if I'm lucky; I'm into long-term buy and hold):

-Save 70% of net income from JOB
-Stop investing in 401k
-Supplement savings with cash flow from property #1 and property #2
-Cash out of stock options, ESPP, and RSU's
-Sell old junk
-Research into out-of-state markets
-Network with other BP members
-Don't get too caught up with the future... also try to live in the moment and appreciate everyday. Lucky for me, I don't need to spend much to be happy :)

I'm going to try and focus on cash-flow, looking for $100k and under properties.

Thanks everyone for all the motivation/inspiration! I get too excited after reading the articles, listening to podcasts, and reading other success stories! Just more fuel to the fire...

Marco Santarelli, definitely sounds intriguing. I'll send you a PM for more info.

I opted to do a 30 year fixed mortgage for my first two properties. When I first started, I was also thinking about doing all cash so I could own free and clear. The thing is, even for a $100k property, it'll take the normal person a looong time to save up for all cash. If I had gone with that approach, I would have missed the boat completely and still be trying to save. As ANISH TOLIA said, who knows what the future will hold? Interest rates are pretty low right now...

Also, after you get the first property, it should only get easier (faster) to save for the next 20%. Just rinse and repeat. I have two cash-flowing properties right now + work income. I'm anticipating (hoping) that I'll have enough saved up for #3 before the end of the year.

Marco Santarelli

Hi Marco, what areas do you recommend for turn-key properties? What type of cash-on-cash returns are you seeing? Thanks.