All Forum Posts by: Matt Ward

Sharon, maybe your friend know when the world ends also. Would love to meet him. 

Seriously though, I almost got paralysis by analysis. My uncle started with single family, now has a couple of apartments in Antioch/Concord. Average Jose, poor English. Can do everything besides Electrical. Showed up to this country without a dime, built his latest home from the ground up. A good friend of mine is now hooked because his GF's Grandma can only afford her 55+ community ($6k payments a month) because of two SFH's she owns free and clear in LA. The counter arguments are endless, when they're personal they're a little more real.

Obviously you can't go in blind, trust is earned over time, inspect what you expect. Zillow Data offers a gold mine of data. You can research rents and sales prices going back about 10 years down to the zip code. Do your research, when you feel ready, take your best shot. At your age especially, you could absorb the blow. Consider multiple exit strategies. Is there an equity cushion? In a downturn what if rents did dip 10-20%? What position would that leave you in? Get the main 5 elements of the home inspected. How much life is left in the roof, foundation, HVAC, Electrical and Plumbing? Based off replacement cost and remaining life, you can anticipate those expenses. Those things should all be accounted for in your monthly budget. 

You make money when you buy and you lose money when you sell at a bad time. The market will likely see 2 massive dips in your lifetime, just like the stock market. Don't time the market, spend more time in the market. Says that Warren Buffett guy. 

When bad things happen, you'll be ready. Sounds like your friend never planned for bad things to happen. 

All the best to you. 

 Thanks Matt...FTR I'm not CA, but CO, where there are similar issues with housing. But point taken. I do realize that PM eats up $$ but on the other hand, as a newbie I'm not sure that I am ready to (or wanting to) handle the PM side on my own, regardless of whether it is in state or OOS.