Originally posted by @Mikhailangelo L.:
I am a new RE investor in the bay area and have been researching properties in the east bay that will cash flow and have found very few that make sense.
Keep in mind, my original goal was to find multifamily <$600k, 3.5% down, and live in one unit and rent out the other(s). The markets I am left to find deals are in concord, richmond and oakland in C- or D class neighborhoods, which I would not feel safe living in.
I am now at the point where I rather buy a condo or small house with potential for sweat equity to live in, while I invest in OOS TK properties like memphis invest.
I really don't see a way to invest in my local market unless I win the lottery, join a company that IPOs, or partner with another investor to get into a more expensive property (I would prefer to have a few investments under my belt before doing that).
Mikhailangelo,
I really appreciate the mention of my families' company as the type of company you would want to do business with if you invested out of state. To avoid confusion going forward, we changed our brand name to REI Nation in January of this year as it better reflects the fact that we are now operating in seven different southern and midwest cities. However, we will always have Memphis Invest in our tagline as we love the city that helped us start the company!
After reading your post here I have two pieces of advice that hope you will take to heart.
First, find local mentors right there in the East Bay area that you can meet with for coffee or lunch or something of the like. There are so many investors from your area right here on BP and there are so many local meet-ups that you could probably visit a different one every night for a month. These are going to be filled with investors of all level of experience and the best and most experienced have always been willing to share what they know. I just spoke at a conference in Oakland and was blown away by how nice everyone was and how willing so many were to share their stories. If I were in your shoes, before looking to go out of state, I would surround myself with local investors and some of them will be investing out of state and others will be house hacking multis like you describe. All of them will be able to give you first-hand feedback.
Don't rush! Be patient and attend local meetups as well as find local investors who you can talk with. Certainly before you pay anyone for advice or join clubs and groups that cost a lot of money, you can buy an investor a coffee, lunch or beer and get a long way toward learning and understanding if you can invest locally or need to go out of state.
Second, when you are looking for mentors, people to network with and learn from or hiring someone to help you get started, you have @David Green right there in your area to work with. He literally wrote the book on how to invest out of state on your own without going to passive, turnkey route. He is also a local agent/broker who can help you determine if you can invest in east bay or not. And, if you can't, he is someone who can certainly help you decide if you can do it on your own or if you need to buy from a company like mine.
You are in such a good situation where you have access to capital, good credit and are willing to house hack. I hope you step back and put some effort into meeting other investors locally and really get the facts on house hacking there in East bay before simply deciding you have to invest out of state or hit the lottery! I think you may find it easier than you think. At a minimum, at that point you will be fully informed on your local market and maybe even working with someone like David to help you successfully go out of state.
Best of luck to you as you move forward!
