All Forum Posts by: Jose Garcia

Feel free to message me if you have any other questions. I am here to help! It was hard to get started. 

There are a couple of things:

1. You don't have a ton of cash, which can be risky on some level. I say this because if there are repairs to be done, after closing costs and down payment, you won't have enough.

2. I'm not sure what you could buy that would actually be worth investing in that is within a 12 hour driving radius. It would likely be somewhere rural, which although everyone needs a home, could pose problems later on with finding tenants, getting repairs done, etc.

3. I would consider house hacking in LA. With $30K as a first time home buyer, you can put as little as 3% down with conventional loans up to certain loan amounts. Citi Bank came out with a program with no PMI if you purchase in certain neighborhoods. That stretches your money farther, have better appreciation, loan buy downs, and tax write offs as a primary residence.

Hey Jose! 

Welcome to the world of real estate investing! Starting with 15-30k is a good range, but remember, it's not just about the initial investment. You'll also need to consider ongoing costs like maintenance, taxes, and possibly financing. 

Since you're in LA, you might want to look into nearby areas like Riverside or San Bernardino for more affordable options. As for tips, research is key! Look for up-and-coming neighborhoods, study market trends, and network with other investors for advice and insights.

Hi Jose! Depending on the loan product used - to purchase a non owner occupied investment property you will need a 15-20% down payment plus closing costs. (different loans have different seasoning periods for your funds and different guidelines on allowing gifted funds - something to consider) To determine closing costs you can call a local title company in your chosen area and ask them for their fee sheet and your lender should be able to provide you with any other fees associated with the loan. I would start with narrowing down a location and property type and then making sure you are connected with a lender so you are running your numbers with accurate data. I'd be happy to connect and chat if you'd like to throw ideas around. I invest out of state as well.

Hi Jose,

Welcome to the world of investing! 

I understand where you are coming from. When I first started I was so overwhelmed by everything I was learning, I fell into analysis paralysis. My biggest suggestion is when you find your right location, don't be afraid to pull the trigger.

It sounds like you have some capital for a down payment so that is positive. For some folks that is a hard step to pass. So, now you are ready to do some research into a location for your first property. It sounds like you want to self-manage, but if you have to drive 12 hours, let's say, they you are already in the lane of long-distance real estate investing (because it's not local to you). If that is the case, I would say you could open up your search to broader markets that are further away and be open to property management. Property management takes typically 8-10% of the rent off the top, but it allows you to purchase properties in other states that are more affordable. If you are looking for something in the 100-200k range (based on the capital you have for a 20% down payment), places like Ohio or other places in the midwest are great opportunities. These typically don't appreciate as much as other locations, but they have more potential for cash flow and can be a great way to get started. 

If you are wanting to stay in the 12 hour range, I would suggest researching smaller areas within a 12 hour radius of LA. Is there a small town outside of a city/larger town where people tend to live because its cheaper? You are in an expensive part of the country, so this may take some time to find something. There are also more regulations in CA, if you want to stay there for your first property, which is another reason I mentioned looking in another state and thinking about long distance real estate investing. 

The first step is information gathering and researching markets. Answering the question -- do I need to be able to drive to my property and if so what cons are there to those limitations? Or can I explore other areas of the country to start off? 

I hope this helps!