All Forum Posts by: Kyle Baker

Hi there Trent,

Where the heck is Lockwood, CA? Just kidding I have been there before. Used to spend some time at Lake San Antonio not too far away (remember going into Lockwood in search of 2 stroke oil one time)

I think you are on the right path with the snowball effect (my wife and I used that same method to pay down and off our debt) 

As far as investing out of state I would highly encourage you to do your research on the area and try and find someone more familiar with the market and the nuances of the market to help you in the beginning. 

I have some investments here in California nearby me and I know the nuances. I know the market. I can check on the properties regularly and perform the little maintenance tasks that come up.

That being said after having some success here in California I decided to sell a property here and invest the proceeds in Georgia (bought 8 different properties). That California money sure does go further out of state. This has been a huge learning curve. I have owned these properties now for a little over 2 years. They have different nuances and I am not there to put eyes on everything and apply common sense in my opinion. I am always relying on someone else and for me this has been very difficult. Where I invested in Georgia everyone gets termite bonds(added cost) water heaters cost almost the same as they do here in California, rent growth is very slow (in the last 10 years here my rents have more than doubled), "qualified professionals" are harder to find.

As others have stated I would definitely have a hefty reserve and be prepared to travel there periodically to put your eyes on things. Check the ages of major appliances. When you are only making $200-$300 a month passive on a deal and a $6,000 HVAC comes up you aren't getting your money back for years (now I purposefully try to buy units with wall heaters and window AC). 

I don't want to sound discouraging. I think real estate is the best investment. Do your research and know your market as best as you can and be prepared to have some failures to get successes. 

If I were out in Lockwood I would think about doing an RV pad and renting it out, a hip camp site or two, or maybe even try to make it a destination like the Twisselmans did in California Valley with their yurts to get started with some passive income. 

Kyle 

Hi All,

I've been a member of bigger pockets for awhile. Have never gone through all of the intro steps recommended (finally doing so). Have made some real estate investments over time. Made quite a few a few years ago. Finally ready to ramp it up and make this a priority and get after it every day.