All Forum Posts by: Moaaz Malik

@Moaaz Malik investing in a market that doesn't fit your investment objective isn't risky. It's a sure path to failure. if you're goal is cash flow and you live in a high cost market which is any where in the Bay Area, you really don't have a choice but to go out of state, otherwise you're just trying to pound a square peg in to a round hole. Start by clearly identifying your goals and criteria then Identify that markets that will best help you achieve them. Look for markets with growing populations, growing jobs, modern/diverse economies in landlord friendly states. 

@Moaaz Malik

Networking on BiggerPockets is how I found my real estate agent. The reason I love this platform is everyone is already an investor or is getting ready to start. It shortens the learning curve and helps you find qualified personnel to build out your Team rapidly! 

Sincerely, 

I'm in SoCal and know the prices challenges you are up against, however, you are worrying about building a portfolio before you even have a single investment property. When I was in your shoes I asked myself “What's the one thing I can do, such that by doing it everything else is easier or unnecessary?” and the answer was get more capital, which is obviously easier said than done. Irregardless of whether you decide to invest locally or out of state, more capital can only make things easier. I'd begin by really exhausting all your options of how you can increase your capital - can you get a raise, work more hours, cut back on your spending, borrow funds, take funds from other assets. In the beginning it took a combination of all these things but now I have more capital than investment opportunities.  

Not sure where you are in the Bay Area but are there any areas an hour of an hour and half drive away from you that are more in line with your price point? Close enough that you can be there if you need but far enough to build out the skill set to manage from a far. 

@Moaaz Malik I'll echo everything @Joshua McMillion said. I live in California and have put together a team to invest OOS. I think thats the strategy that would work best for you right now in your situation. (Side note: have you considered house hacking in the Bay area? David Greene could help you out with that). 

Step 1 is to determine your long term "why" for yourself and your family. Then create your long term goals (10-20 years away) and create the smaller goals that will allow you to hit those long term ones. Back it all the way up to "what can I do today to achieve those goals?" It sounds like you need to identify an market, then put together a team in that market. 

Bigger Pockets can help with both of those. I put together my team almost exclusively from networking and information I learned on these forums. There are lots of blog posts and articles out there that will help you determine the right market for you. Let me know if you want to chat more in depth about it. 

Congrats on taking steps to start your journey and keep us updated!

It is always better to start investing locally because you understand the market, but that amount of capital will not go as far in that area. It's good that you understand your situation but if you can't make that amount of money work then I would look OOS. @Moaaz Malik

It sounds like you understand the pros and cons of investing out of state andjust need to make that decision for yourself. Do you want to save more to invest in the Bay Area, or take on the added (but not insurmountable) difficulty of investing out of state? If you go the OOS route then building a strong team with folks you trust is even more critical - especially your Realtor and Property Manager. Good luck! 

@Moaaz Malik @Joshua McMillion has some great advice for you, I learned several of the same lessons investing in Kansas City from CA. I’m a fan of going out of state, even to start. I talk about in on Bp 373 in depth. Think about if you want to find a way to buy a house in the Bay Area or if you want to be a real estate investor. If you want to be an investor then pick a market and get going buying properties. 

@Moaaz Malik

We moved from California last December, but before we moved, we purchased the home that we currently live in, intending to turn the house into a rental after moving. I'm active duty military and move often, but this was the first home I purchased OOS and sight unseen other than Zoom. My first recommendation is to identify the primary and secondary markets you want to invest in. Learn the area, jump on google earth, start rating the high schools, find where the hospitals are, and where the large employers are located. 

Secondly, I recommend you start building a Team. I found that the most critical Team member is the agent. If you can find an agent that is also an investor, you typically can use their Team. For example, I used my REA's GC, PM, and preferred lender on the OOS home, and my REA was willing to be the boots on the ground because I continued to add value to him. I eventually found a new GC, but his recommendations for lenders and PMs were spot on after my due diligence period. 

Third, you have to have boots on the ground if you are doing value add plays. A GC will typically have a google folder with photos to update you on progress but nothing beats physical quality control inspections. I was fortunate to be moving during the OOS home REHAB and was shocked by how behind schedule they were and some of the corners they cut. Find someone willing to be a project manager and have then manage the cost/schedule/performance. 

I hope that helped! 

Sincerely,