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All Forum Posts by: Mariana L.

Mariana L. has started 2 posts and replied 6 times.

Quote from @Nicholas L.:

@Mariana L.

yes!  I totally get that you're in a HCOL area, and so looking for a market.  what i meant was... i would look at places you know, or have a connection to, or are passionate about.  for example... where you have family and visit frequently, or where you like to vacation, or where you went to college.  And ideally it wouldn't be thousands of miles away.   

Is it possible for you to invest successfully in Maine or Alabama or Ohio, from San Diego?  Sure.  But if you browse the forums, you will actually see many, many posts from California investors that bought a random property at a "low" price point... and then totally failed to meet their expectations.

and to reiterate: if you buy something turnkey, you will not cashflow for several years.  if that is OK with you - great!  but those spreadsheets that show you buying and then in month 1 you net $275?  that's generally not how it goes.  the first few years are building, stabilizing, investing.  see these threads.

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

https://www.biggerpockets.com/forums/12/topics/1171104-the-m...


Thank you so much for those links! And further explanation. Indeed, that's what drove me to look out of state. But I haven't dismissed CA. I do have some local connections here, just in a lot of other forums and fb groups I've read so much about CA people investing out of state because "it's better returns". But I'll keep doing my due diligence. 

Quote from @Nicholas L.:

@Marcus Auerbach

isn't the short answer to OP's question that turnkey will not cash flow right now, whether in Milwaukee or LA?

turnkey means - you buy it with a high interest rate and high down payment, perform no value add, rent it out, and hope the HVAC doesn't go out in month 4.

where or how is that 'cash flowing' right now?

with that said, i totally agree with you that trying to math your way to a market makes no sense.

@Travis Biziorek

totally agree with your post. and i guess you can BRRRR your way to a turnkey - just depends what stage you buy it at, right?

Hey Nicholas! Thank you so much for your feedback. I get what you're saying about turnkeys. But could you please elaborate on "mathing your way to a market"? It's my understanding that one has to run calculations as a first step. Then vet and build a team. 

Hi Stuart, thank you so much for your feedback. I like how you think. What are some markets where you see appreciation happening?

Post: First time investor- house hack in SD or LTR in mid-west or open to other

Mariana L.Posted
  • Investor
  • San Diego, CA
  • Posts 6
  • Votes 10

Thank you for replying Jonathan. We've also been exploring properties in person. Mostly turnkey properties. But here in CA, at leas the ones we've seen, come at a hefty price tag/ don't cash flow. I fear that without a "contractor eye" my viewings of any property that needs rehab is pointless. I haven't been able to gage how much they cost to rehab. I like your turnkey property idea, that's what we've been discussing. Any specific cities/areas you recommend? Finally, I do intend on being fully hands on, but hope to eventually be partially hands on. I think that's fair. From all I read, that's the natural evolution of people's RE investment journeys. 

Post: First time investor- house hack in SD or LTR in mid-west or open to other

Mariana L.Posted
  • Investor
  • San Diego, CA
  • Posts 6
  • Votes 10

Hi BP community! My husband and I want to explore a real estate investment. I've been reading books, took a course, reading forums; there are infinite ways to invest, but seemingly few that are *currently* profitable. I've ran a few calculations, both in my county (San Diego) and out of state (mid-west). Maybe I haven't run enough. I dispose of time and am fairly passionate to diligently carry out a real estate project for the next year. Beyond that I do need it to be pretty self-sufficient. But I'm still boggled as to where and what exactly. Being completely transparent, heavy rehab work is too much for our tolerance level (both stress and financial). This feels silly to say, but obviously, like everyone, we are looking for the best returns. I recently also heard of storage units as a more passive investment. Any recommendation and knowledge of current markets and trends would be greatly appreciated. We have around $150k to invest. Thank you!

In what cities/neighborhoods would a turnkey property yield the best cash flow & appreciation?