All Forum Posts by: Mario F.

@Billy D.
I listened to that podcast last week and that is exactly why I started to wonder about Lancaster area.  It made me wonder if the investors were expecting that area to be the next in line for a boom. 

I'll be looking into Pheonix for sure. It seems to me that it's possible to get one of the newer condo developments and still make cash flow after expenses.  I'm not an expert with calculating the numbers though so maybe I made some errors. For instance, I saw a property going for 180k. 3bed condo, which rents out for around 1700 in that area.  That generally passes the 2% rule right?  Hoa wasn't too expensive either.  It's a newer development which I would assume would make it low maintenance. Sounds too good to be true so I must be doing something wrong haha. 

I'm reluctant to flip anything out of state thought because I don't have much experience with it just yet. I'd rather buy something local if I went that route. Something in the Valencia area would be awesome but prices up there are too high as well, haha. By the way, I went to Calarts!  Lived in Valencia for a while.

@Nick Patterson  

Thanks!  Would most of those deals be found digging through foreclosure listings? Homepath.com seems like a good place to find a deal but perhaps it might be better for a more experienced investor who would feel more comfortable moving forward without contingencies. Would you agree with that?

-mario

@Ciprian 

Awesome! It would be great if you could show me some options. I work at Disney Studios in Burbank so that area would be particularly ideal for me.  

I'd like to wrap my mind around what's available right now and make a decision within the next few months to either buy a multi family unit in town or invest outside LA.  

@Ciprian L.  I would love to get into a 2-4plex in LA but don't think 50k is enough of a down payment to get into one. 

Out of curiosity,  what's the best way to find these 2-4plexes? I'm having a hard time finding anything like that on Zillow. What areas would you start with if you were to get into a 2-4plex in the Los Angeles area?  I'm assuming Santa Clarita would be a much more affordable area for someone just starting out like myself.  

@Ciprian L.  The Issue I'm having with the LA market is that if I buy right now, I'm worried that all of my income will need to go towards the mortgage instead of savings/investing.  My expenses right now are low enough for me to be able to save quickly. If I buy in LA, a lot of that extra cash would get bottled up in my LA home. 

I could either spend the 50k I have saved on a down payment for a home in LA, or  grab a couple of investment properties in Arizona, Lancaster, or Chicago, that might yield some cash flow and give me valuable experience with buying rental properties.  So I'm debating between the two options here haha. 

Any suggestions or thoughts are great appreciated!

Thanks!

mario

@Billy D. Thanks for your input!  What you're saying is making a lot of sense the more I begin to wrap my mind around the concept of real estate investing. Seems like we don't have a choice but to look outside of Los Angeles until the next big downturn happens. I have family in Phoenix and Chicago, which are two cities that seem to have lots of potential for cash flow. I like Phoenix because of the newer developments which would be low maintenance.  I'm also curious about Lancaster though. It's not too far from LA. The prices are within range and so I'm wondering if there might be an upward trend in coming years.  What do you think?

That's pretty inspiring. I would love to be in your situation right now!  Haha.  I'm looking to buy my first rental property  in Arizona and am wondering if the market is a good one to get into right now. Or, have I missed the opportunity?  Sounds like you got in at the right time!  

I'm seeing properties for 180k that seem to to rent for around 1400 a month. Is that a decent deal? 

Thanks and good luck!

Thanks so much for the advice! It seems to make the most sense to start off like that.  I'm currently catching up on books/podcasts and am learning a lot about buy and hold strategies. Going to be tricky to buy and hold a property in LA and then get another loan for a second property.  I know it's possible. Just going to require lots of reading!!

Yes that helps.  I've heard this kind of advice before as well. Some real estate investors tell me I should buy but most are saying to wait. I'm in the middle of Turners book right now and am just learning about all the different methods of investing. It seems to make sense to do buy and hold these days because that equity could disappear very quickly if the market has another big drop!  Thanks for your reply!

I am looking to buy my first property within the next few months but I've heard several real estate investors say that it's a terrible time to buy because of peak prices.  That I should wait at least until after the election etc.... I was wondering if anyone had thoughts on this.  Thanks!

mario