All Forum Posts by: Michael T.

Cassandra, 

There are a few websites that I use but typically each city has there own specific data. A few of the websites that I use are;

https://factfinder.census.gov/faces/nav/jsf/pages/...

www.bls.gov

www.city-data.com

There are numerous posts here on BP that provide lists of cities that are considered some of the top cities for rental real estate investing.

In fact there was a post that was started by Tom Ott that provides some of these details.

https://www.biggerpockets.com/forums/48/topics/657...

Ultimately, when looking for out of state investments you'll want to look for cash flow and good IRR. I own one rental in Texas and it performs okay because we bought it in 2013 but right now it's hard to find something that makes sense there.

Typically, the mid west such as Indiana, Kansas and Kentucky all provide good opportunities from a cash flow perspective.

@Kolton Lynch congratulations on your recent investments.  Vacationing and traveling to California can be great and many people love it once they visit.  Depending on the location there are definitely numerous investors that buy property in California with the intention of renting it out whether it's for short term or long term.

Depending on where you're looking in California the first step is to reach out to specific people in that location to ask their experiences of investing and what type of investments are the best.  After reaching out to other investors reach out to a Realtor so they can give you guidance in regards to where the best opportunities are.

Again, congratulations and I'm sure when you make your purchase here in California it will be a good one.  If you need any assistance please feel free to reach out.

@Alejandro Arciniega since this is for your personal residence here in Southern California it will definitely be more of a personal preference.

Remember living in the Los Angeles market isn't cheap but there are definite benefits such as; debt pay down, appreciation and truly enjoying where you live.

While this is a personal residence purchase and not an investment purchase it is still better than renting!  Ultimately, it becomes a personal preference of what you want to do.  I always prefer to own versus rent.

@Alejandro Arciniega so it sounds like this is a SFR and not a multi unit property correct? After everything is said and done you'll cash flow on a yearly basis $4K so approximately $350 a month.

So the approximate rent on the property will be $4,300 a month correct?

If there is more room for appreciation over the next two to three years and you're cash flowing then the deal is not bad, however, if you there is not going to be appreciation then be very mindful.

@Asya Monds, yes it's definitely more difficult to find cash flowing properties here in Southern California.  

Yes, I also handle properties in Orange County.

Unfortunately, there are even less multi unit properties in Orange County compared to Los Angeles but they do exist.  

There are a few on the market right not that while they don't cash flow they do allow for one unit to be vacant, allow debt pay down and will appreciate.

Please feel free to reach out if you need any assistance.

@Henry Culpi welcome to BP!  Your first investment property may take the longest but you'll lean a lot doing it.

The Dallas/Fort Worth area is a great area and I still have an investment property in the area.  Be mindful of the taxes since there are no income taxes in Texas the cities typically charge more than normal for real estate taxes. 

Continue to do your due diligence and you'll be okay.

@Mike M. welcome to BP!  Once an individual learns the simple math behind real estate investing it's very easy to get the itch and want to start investing as soon as possible.

There are definitely multiple ways to achieve financial freedom through real estate investing it just depends on how you want to do it.

In the Los Angeles market most investors buy for appreciation and for cash flow they invest out of state.  Many investors here in Los Angeles buy a multi unit property, live in one of the units, then sell it off after a few years and either buy numerous cash flowing properties out of state or buy larger multi unit properties here in Southern California.

@Justin Hazel congratulations on achieving four doors!  It's definitely not easy in California and you are exactly right, in order to achieve cash flow an investor typically has to do this out of state.

You'll learn through all of the future podcasts that you'll listen to from @David Greene and @Brandon Turner that you'll need a strong team on the ground to achieve financial freedom.  It starts with having a quality real estate agent, a quality property manager and a quality contractor.  

Once you have these in place it is much easier to invest out of state.  Take the time to listen to the podcasts and read a few of the books written by David and Brandon and you'll do well going forward.

@Account Closed you've received some good comments here and hopefully it gives you a little better idea of where you should go in this process.

Since the refinance would put you negative $850 cash flow a month it is best not to do it at this point in time unless the property you are buying will cash flow more than $1,000 a month.

As many have stated the best option would be to sell the property, either buy additional out of state properties that cash flow or buy something else here in the Los Angeles area that will see significant appreciation over the next few years.

As you know it's very difficult to cash flow here in Southern California so most of my clients buy here for appreciation and out of state for cash flow.  

In your situation it is very likely that the condo has achieved very close to the maximum appreciation so it's time to sell.

@Asya Monds and @Hassan O. Southern California can and is a great place to invest in multi-family properties, however, you have to understand that cash flowing properties here are not very common and most investors buy for appreciation.

When looking at investing if you're able to do a multi family and live in one of the units, stay for a few years and then sell you typically get the best returns.

There are a few areas in Southern California that you can cash flow but it is very difficult to find those properties so you have to be open to different options.

If you're able to do an FHA loan do it, wait 1-2 years and either refinance or sell the property so you can re-invest into another property here or out of state for cash flow.