Quote from @Hannah Liu:
Hello everyone! I’m really excited to join this community.
I'm from California. I've been interested in real estate for years and have invested as an LP in several projects, ranging from residential single-family homes to NNN properties and flipping.
While I haven’t owned any property yet, I’m hoping to take that step in the near future. However, I’ve been hesitant due to challenges like remote management, high interest rates, and low cash flow. I’d love to learn from all of you, connect with like-minded people, and eventually achieve financial freedom together!
Hey Hannah. Congrats on taking the first steps on your investing journey. I'm born and raised in San Francisco and started off as an OOS investor as well back in 2021.
First thing I recommend is to figure out your target market. Landlord friendly states are going to be your best friend since CA isn't the best at looking out for landlords. Focus on factors like what is driving cities to grow both in population and economics. Taking a trip to the city will also help you get a lay of the land and what you can expect from the specific market you settle on. There are still some good markets that will provide cashflow but you'll need to have realistic expectations when investing purely for cashflow.
Next, start building your remote teams. Investor focused realtors & Property managers are going to be your biggest asset since they'll be finding your deals & managing the day to day operations for you. A good, solid PM will be key to your investing. Local investor focused realtors will have multiple referrals for you to check out and interview. PM's will have plenty of contractors to help streamline the process for you and limit your liability when dealing with contractors.
Finally, don't get caught up in analysis paralysis. Hardest step in everyone's journey is to pull the trigger on a deal. You're going to learn A LOT from your first investment property so don't get discouraged. There's ways to help limit your overall liability like targeting more turnkey properties or properties with long term tenants (2+ years of living there) to help the learning curve. I normally recommend a turnkey single family home (3b/1-2ba)/ light cosmetic work single family as a 1st investment. Single families are generally more desirable for tenants & you also get longer staying tenants most of the time.
Happy to share some of my OOS experiences.