All Forum Posts by: Samir S.

@Jordan Thibodeau

 No android for me; that was from iOS! :)

Hopefully the bug will be fixed...

@Alex Vidal

The more I think about it, the better a SFR looks to me. I also don't mind putting more than 20%-25% down in order to cash flow; I like long-term investing and think that I will come out ahead in the long run by going this route

Thanks for taking the time to reply!

@Kevin Siedlecki - "Just because it's not the best ROI you could achieve doesn't mean it's not the best investment for you."

This hits the nail exactly on the head.  I am semi risk-averse by nature and so putting such a huge amount down in one place seemed risky to me.  But I think that if I buy in a good location and stick with it through the ups and downs, I'll come out ahead in the long run.  It's a calculated risk, but one that I am willing to take.  Thanks for the motivation!

@everyone - sorry, I was out of town on business and didn't have a chance to reply.  I appreciate all of the input I have received.  It's really making me think about my options.

@Jordan Thibodeau

Hmm, I *could* just toss the money into the 401K (but I hate doing that because I cannot pick individual stocks, only mutual funds...blech!).  Also, I think I can do better by leveraging my money in real estate.  This is sort of my "speculation" money so I am OK with not earning as much up front with the chance that the house will appreciate.

@Alex Vidal

Thanks for your input. We are looking at properties up to 450K. That gets a condo in the East Bay area or a SFH in Roseville/Rocklin/Folsom.

The HOAs here in the Bay Area seem excessive which really turns us off on some properties. We also hate the special assessments that the HOA can charge for repairs. It just feels like we are giving up too much control by investing in a condo/townhouse.

@John Santero

I agree about analyzing the trade-off between stocks vs. property.  Although we have been doing well in the stock market, it may just be simple luck because of the bull run we've had the last several years.  We are not heavy traders; we (generally) buy and hold shares and plan to support ourselves partially from the dividend income they provide.

Why do you use $200 net per month as the "walk" limit?  Just a personal preference?

@Gordon Cuffe

I like your explanation; that made us see things in a different light.

We feel like over the long run, prices/rents in Roseville/Rocklin/Folsom will hold steady and/or appreciate, so breaking even and keeping the extra $10K on the sidelines for repairs rather than putting it toward the house just to gain $52/month in cash flow is what we'd lean toward.  All the while, someone else will be paying off the remaining loan while the place is rented.

Thank you for taking the time to reply.

I apologize for the formatting; it didn't come through how I typed it on my phone.

We are hoping to buy our first buy-and-hold property by the end of this summer. We feel like we've been analyzing properties ad infinitum and just need to take action! We live in the East Bay Area (Livermore) and would like to buy locally but what we could afford here would mainly be condos/townhomes; not sure we like not having full control over the property. We both like the Folsom/Roseville area (near Sacramento where we are from) and find ourselves in those areas several times a month visiting family. We've read the advice on not to buy any property with negative cash flow. It seems, though, that if we put a larger down payment, we can create positive cash flow. We know that reduces some leverage, but we are somewhat conservative and don't necessarily want to leverage to the hilt. The question is (and maybe there is no right answer): is it advisable to put more than 20-25% down for the sole purpose of generating positive cash flow? What are the negatives of that if we plan to only hold one or two properties for the long term? We already have a significant (to us) chunk of money in stocks and would be investing in real estate solely to diversify our holdings. Would that change the answer? Looking forward to hearing your thoughts and advice. Thanks!

@Abraham Williams - My wife and I are newbie investors from the East Bay Area (still looking to make our first rental investment).  We are liking the idea of investing out-of-state more and more until we can build up a sizable cash flow before we invest a little closer to home.  Our plan is to invest in SFHs in A-class neighborhoods and build our cash flow stream slowly and steadily.

Just wanted to wish you luck in your journey and also to say hello from a fellow Bay Area resident!