All Forum Posts by: Nicole B.

@Arlen Chou thank you! I will definitely be going to those meetings!

@Jordan Moos- Have you done research? read any books on real estate investing? IMHO the list would be different for everyone because we all have different goals. 

First (as you read and learn) you need to establish your criteria.  What type of investing do you want to get into? What market? What are your future goals? Do you want to buy and hold? do you want to fix and flip? Once you figure out the what, you will have a better idea of the how.  The best book I have read so far is Millionaire Real Estate Investor.  That book laid the foundation of real estate investing for me and gave me that boost to jump into more research and learning.  It's very important to learn this stuff as you go along.  It can be a risky business, but if you are careful and learn as much as you can, you can be successful. 

Good luck!

What are the best ways to research about a neighborhood if you know nothing about it?  Do you just google the area and see crime rate statistics? Do you talk with people?

Thank you @Joe Villeneuve!

So what does that mean about all investors in the Bay Area? I saw on here that plenty of them are successful.  

Hi guys, So I am confused here and need help. I live in the Bay Area and as all you know the prices for housing here is astronomical. That being said I have done tons of research and have learned that leveraging debt is the best way to build wealth quickly. So if I put the minimum down (10%) on a property (thus keeping more in my bank for future investments)my mortgage will be way highwhich decreases my cash flow amounts in the rental. And as I said in the Bay Area the price for housing is incredibly high. So if I'm putting so little down and using the 50% rule (expenses 50% of income) I will NEVER find a property that will cash flow. So does that mean I just have to save a ton to put a bigger down payment on the rental, thus having less cash in the bank ruining my chance of making more investments? Is the 50% rule really plausible in scouting out deals? How do you make a profit in the Bay Area people? The advice I have heard seems to contradict itself... Or at least in this market. Am I doomed to be an out of state investor?

Like others have said, it seems as if your estimates were too low before you bought the property.  It's always important to over estimate expenses (to have a buffer for vacancy) to be on the safe side.  I recommend before you buy a property that you see actual expenses from the previous owner as well as the tax return Schedule E (including the depreciation report).  You want to see if the owner is hiding costs from you or if he deferred repairs.  Lots of homework on the properties is extremely important before buying. 

Also, as was already stated, never make improvements on a property if you can't get any benefit from them.  Look at rentals around the neighborhood.  What are they renting for? if  the rents are comparable to your rental, then obviously you shouldn't put much money into the place since no one will pay for the upgrades. 

This is all a learning experience so don't be too hard on yourself.  Know your market and act accordingly.  Real estate investing is very fluid and you have to move and adapt to it to be successful.  

Be happy that you're not having negative cash flow every month (not counting the vacancy).  Remember that as every month goes by, you are still gaining appreciation.  Chin up and learn from your mistakes.  Read tons of books and research.  You will get there!

For discussions on ROI for flipping using cash.

https://www.biggerpockets.com/forums/67/topics/61516-average-flip-roi- 

I live in CA and completely understand your issues with this.  A strategy that I have learned in my research is that you can always force appreciation.  Buy a house for less that could use a good spruce up in a decent neighborhood and then raise rent.  But be careful here as you need to make sure that the new raised rent is comparable to the area.  Also, don't get too carried away on rehab as you may not get back what you put in.  Renters will not pay more  for rent in a home that has nice expensive counter tops if the neighborhood isn't worth the price.  

Welcome! @Donald Latson!

Have you tried searching in the forums for posts about wholesaling tips? There are also a tons of blogs and podcasts on this site.  I suggest you also read some books on this topic.  There's a wealth of information out there and I suggest you just dive in! 

Also, check to see what RE groups are going on around your area and meet new people. Once you become immersed in this culture, the help and mentorship that you are seeking will be easy to find!

Welcome @Curtis Mitchell!

What books have you read so far? This site offers tons of blogs and podcasts that can be very helpful as well.  I am new to investing too!

A big thing that I have learned so far is that you should be sure to learn how you can best get a return on your investments when paying with all cash.  I know there are tons of other calculations and issues to keep in mind while buying properties with all cash, but building wealth quickly is all about leverage.  A book that I am currently reading is "What Every Real Estate Investor Needs to Know about Cash Flow and 36 Other Key Financial Measure".  Has tons of calculations that you can learn to determine which properties are worth a purchase, etc.

Also, another big thing that I have learned is to find a niche that you want to belong to in the real estate world; then become an expert at that.  That way you're not spreading yourself too thin doing tons of different things. 

Good luck!