All Forum Posts by: Mike Paolucci
Mike Paolucci has started 5 posts and replied 323 times.
Post: Advice on first investment (100k to invest)
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Anais Rosales:
Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
Have you thought about out of state investing? I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH.
The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.
Happy to share my experiences.
Post: I need help figuring when to buy my first investment property
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Enos Vazquez:
Single. Make $100k as a w2. Just bought my first property which I am going to house-hack 2 rooms at $600 each. I live in CA. Should I continue with my idea of buying my first investment home outside of CA? or should I wait let things settle until next year?
Hey @Enos Vazquez
I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH.
The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.
Happy to share my experiences.
Post: Out of state investing for Californians
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Brandon Chen:
@Mike Paolucci When you mention numbers and landlord laws made sense, what does this mean? Thanks Mike!
@Brandon Chen
When I say numbers and landlord laws that make sense, I mean the following:
Numbers - For me, it doesn't make sense to invest in a property where I have to run a negative each month (will need to put money out of my own pocket into the property for the mortgage/insurance payments, etc). I would rather have a property pay for itself / put a little bit of $$ in my pocket after all my expenses. I'm buying property / rentals to make money & build long term wealth via tenants paying my mortgage for me and gain the equity. Not cost money each month.
Landlord laws - CA is not very landlord friendly. As a San Francisco native, I grew up doing property management with my mother for our cousin's property around the corner from my house. Tenants in San Francisco and most of CA have more rights over the property than the owners themselves.
Example 1 - if I owned a rental property and wanted to move back into it, and tenants didn't agree to move, I would then be forced to invoke what is called the Ellis Act. This means that I would have to pay them up to $35k each person to help them move AND my property wouldn't be allowed to be used as a rental for around 10 years.
Example 2 - if you click the link in my post ("Justice for Renters Act"), you'll see what CA is trying to pass on the November ballot. They're trying to eliminate a landlord's ability to ask for market rent if a tenant moves out and you have to rent to a brand new tenant that you've never rented to before.
These are just a couple of examples of what I'm referring to when it comes to landlord laws making sense and reasons why I chose to invest in the Ohio markets.
Post: Out of state investing for Californians
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Ashni Modi:
I am starting out my journey in real estate investing. I live in orange county, California where there is basically nothing under $1 million. Is investing in California still viable? Say if I have 100K available for downpayment, what are some markets for out of state investing? I would like to have a good balance of positive cash flow as well as appreciation. I have heard of Midwest but any recommendations for which cities to look into?
Hey @Ashni Modi.
I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH. There's also other markets like Cleveland, Cincinnati, Dayton, Toledo that are also good markets to invest in.
The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.
When it comes to investing in CA, be prepared for what is coming on the Nov ballot. It's called the "Justice for Renters Act." It's basically another reason why I choose not to be a landlord in CA. Here's the link --> "Justice for Renters Act"
Happy to share my experiences. Good luck on your REI journey and property search!!
Post: Investing out of state - Finding an Agent
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Manmeet Singh:
Hello,
I am starting in real estate investing. I live in Sacramento & own a home & trying to buy a rental property but prices are crazy high in my locality and even in the whole of California. I am starting to think of investing out-of-state and looking for some thoughts on investing out-of-state and finding an agent who can help find these out-of-state properties.
Appreciate any feedback.
Thank you
Hey @Manmeet Singh, welcome to BP and congrats on taking the first steps on your REI journey!
I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH.
The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from my properties after a little TLC.
Happy to share my experiences. Good luck on your REI journey and property search!!
Post: Cannot find cash flowing deals in CA
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Hey @Sahil Rajput, I'm originally from San Francisco, CA and ran into the same issue when I started in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH.
The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.
Also, take a look at this link. Looks like they're trying to revive the old Prop 10 legislation from previous ballots and renamed it the "Justice for Renters Act" -->"Justice for Renters Act" Just another reason why I'm glad I'm not investing in CA.
Happy to share my experiences. Good luck on your REI journey and property search!!
Post: Recommended investment opportunities in Northern California
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Ziyad Al Salihi:
"I'm eager to start my investment journey but recognize there's much to
learn. I have a question: What are some promising areas for small to
medium multifamily investments in Northern California? Any
recommendations or advice from experienced investors in the region would
be greatly appreciated. Thanks in advance for your insights!"
@Ziyad Al Salihi @Minie Quilala Good luck on your property searches.
I started in 2021 while being born and raised in San Francisco and found it really hard to find properties where the numbers and landlord laws actually made sense and I wasn't running a negative with only a hope and prayer that they would become cash flowing properties someday.
I did the same as @Ruchit Patel and invested in Columbus, Oh where both the numbers and landlord laws made sense. Here's an example of the landlord laws I'm referring to. This is coming on the November Ballot --> "Justice for Renters Act" Can't say, as a native Californian and investor that I'm too excited about this one..
It will all depend on your goals and risk tolerances. If you find that things aren't working out in CA, take a look at some of the Ohio Markets. Happy to share some of my experiences as an OOS and in-state investor.
Good luck in your REI journeys!
Post: I love Cali but.....
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Mark Cotter:
Hi all, I am not new to investing but I am new to RE investing. The majority of my money is in Stocks and I'm looking to move some of my funds over to RE. I'm not looking to get rich or replace a W2, but I am looking to build a portfolio of properties that will eventually add to my income streams in retirement. The challenge for me is that I live in San Diego CA and the market is expensive and I compete with owner-occupiers who will pay top dollar. Buying a run-down property and fixing it is difficult because building costs here have become ridiculous. I am slowly coming to the realization that maybe Cali isn’t the best place to invest ( I love the joint). I have seen places like Cleveland and Columbus get mentioned on the forums as a good place to invest but I’m open to other ideas. I want to start slow and build from there. Any help would be much appreciated.
Hey @Mark Cotter. I ran into the same issue when I first started investing in 2021. I ended up choosing to invest out of state b/c the numbers and landlord laws just didn't make sense to me. Not to mention the fact that there is a piece of legislation set to be on the November ballot that can really hinder a landlord's ability to maximize profits with new tenants. --> "Justice for Renters Act".
When I started exploring OOS investing, it just made more sense for me. I ultimately settled on Columbus as my target market and haven't had any regrets as the years have progressed. The key for me has been having the right teams in place and trusting them do their jobs. The trust part can be hard b/c you're not able to check on the properties as easily but that's part of building long term business relationships.
Happy to share some of my experiences both as an OOS and in-state investor.
Post: Seeking Insights on Cash Flow-Oriented Real Estate Investments in Columbus, OH
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Max Smetiouk:
Quote from @Mike Paolucci:
Hey @Divya Santhanam. Congrats on taking your first REI steps!! I'm originally from San Francisco and started investing in Columbus back in 2021 with a 3bed/1ba single-family home and now have 3 additional duplexes in my personal portfolio, all in Columbus. I think you're choosing a great market to focus on.
Happy to connect and talk about my experiences with you and your husband!
Hi @Mike Paolucci,
I am local to Columbus and preparing foundation for investing at the moment.
What has been your experience with short term rentals in Columbus and which neighborhoods are doing well?
Thank you
Max
Sent you a DM
Post: Seeking Insights on Cash Flow-Oriented Real Estate Investments in Columbus, OH
- Realtor
- Columbus, Oh
- Posts 329
- Votes 469
Quote from @Lynn Wong:
@Mike Paolucci I have been following the market in Columbus, have agent that I am working with there. I have not got a property there yet. What neighborhood are you investing in? I want to see OOS investor’s opinion and experience. TIA!
sent you a DM.