All Forum Posts by: Jordan Foster

I am prejudiced on this because I have already made the move, but I'd go OOS with the intent to move eventually. We saw what states like Cali will do when faced with situations like Covid, and they are very tenant friendly in general. I wouldn't start a business in a place that was hostile towards me (being a landlord that is)

Just my .02...

Hi Jordan, the price point here on the central coast is a significant obstacle for many buyers but nothing that hasn't been overcome by someone else before. Consider bringing on a partner for your first deal. They could get a different skill set or knowledge base for your operation and business. Also, the house hack will be one of your best bets in a market like this, 25% down can be 250k which is crazy but means there is a strong desire to own here in this market. I just like you am looking to get my first deal so these are recommendations I have heard from listening to others and trying to grow my network. Reach out to me and maybe we can grab a meal and grow each other's knowledge, best of luck to you brother!

Hey Jordy! Love to see your activity on the forums. 

Based on our conversation, my advice is to continue to save and then invest locally. Unless you plan to move in the near future, the biggest gift you can give yourself as a Cali resident is to OWN rather than RENT - especially if you can get the mortgage paid by other folks. The appreciation value is palpable, and the saved out of pocket expenses are a radical opportunity to put your savings into future properties. 

I personally suggest you prioritize house hacking and once you have it rented out and can get a sense of your monthly cash flow and potential savings, I would pool those funds into a down payment on a new property... and then another... and another. You could even consider HELOC'ing your California property once you have it to help you afford more out of state.

Always happy to hop on the phone if you want to talk through any of these strategies and LOVE the support the BP community is giving you as you consider your options!!

@Jordan Foster

I started with turnkey remote rentals in 2009-2015 while working my engineering W2 job when I was non accredited. Then went into syndications once my net worth went over 500k.

The problem with the CA properties is that they will not cashflow and will be entirely an appreciation play.

Only two things need to be checked mostly:

If you can afford the house in your area and if after a year, rent can cover the mortgage, house hack will make you more net worth over time.

Someone like me, living in the bay area of California, neither can afford a house near my job, nor rent can cover a mortgage. So, by paying rent, but at the same time, investing savings out of state in a good neighborhood, will give me a higher net worth over time.

( small secret benefit of out-of-state investment no one talks about is; that you leave all headaches on your property manager, your realtor, your advisor, etc. I like passive income, so works for me )

Got it? Let me know if you want to talk to the team that helped me.

--Ruchit

I would say house hack. Main reason is the appreciation bonus with that area. Long term wise it'd be a great investment that you can use to hold for 5-10 years or 1031 after a couple. In time if you held it you could tap into equity and use that for more deals. After you get a house hack you could look into buying an OOS property and start building a portfolio. 

Be sure to consider your life situation as well. Do you think it's likely you'll want to relocate to another area/state within the near future? Out of state investing is better to set you up for that.