All Forum Posts by: Zarrin M.

Quote from @Eliott Elias:

This depends on what market you’re in and the price point of the properties you are purchasing. If you are going to flip, you will need to save up 15% of your total project, purchase price plus rehab. If you are holding rentals, save up 25%.

Eliott, thank you for your message! 

Quote from @RJ Dillon:

Hello, 

On the lowest end $250K, however at the end of the market deals will be much more difficult to find.  With $350K you can safely target deals priced at about $1M which would open up more options for you. 

 Thank you, RJ Dillon. 

Quote from @Nathan Harden:

Quote from @Carlos Valencia:

Hello Tahirih, 

Do you plan on purchasing as an investment or open to the possibility of house hacking where you live in one unit and lease out the rest? Owner occupied usually needs at least 3.5% down if using FHA or 3-5% for conventional. As for Investment properties you will need 20-25% down payment. Just look at the area of where you plan on investing to see how much you will need to save. Hope this helps.

@Albert Bui @Matthew Kwan

Carlos is spot on. It really depends the route that you are wanting to take. Going FHA with 3.5% down is a great option for a lot of first time investors because it gets them into the game with minimal out of pocket and a rental to add to their portfolio.

Nathan,
Thank you for sharing your perspective! A 3.5% down payment, even 5%, would be much more realistic for me starting out. At least for my first investment. 

I’m going to need to really balance ideal vs realistic approaches to this.

I wonder if I could even find a home to house hack in the San Diego area that would also be in a neighborhood I wouldn’t mind living in. I’ve got a lot to think about. 

Quote from @Carlos Valencia:

Hello Tahirih, 

Do you plan on purchasing as an investment or open to the possibility of house hacking where you live in one unit and lease out the rest? Owner occupied usually needs at least 3.5% down if using FHA or 3-5% for conventional. As for Investment properties you will need 20-25% down payment. Just look at the area of where you plan on investing to see how much you will need to save. Hope this helps.

@Albert Bui @Matthew Kwan

Hi Carlos, 
Thank you so much for your response. I wasn’t considering house hacking but it appears that the differences in down payment are substantial when it comes to seeking a bank loan for investment vs house hacking. 

Is a 20% down payment pretty standard when it comes to getting a bank loan for an investment property or are there exceptions where a lower down payment is offered? 

Hello,

I'm in the early stages of learning the basics of REI. However, I want to start the process of saving for it now. I'm considering buying and holding, flipping or BRRRR as options. I haven't yet decided which strategy is best for me, but don't want to wait to start saving.

What do you think would be a good ballpark figure to save for a first time real estate investment in the greater San Diego area?

Thank you!

Tahirih

Quote from @Joel Forsythe:

Dead is dead. Was always gonna be dead. Terribly stupid bill. 

Bill Title: The California Housing Speculation Act: income taxes: capital gains: sale or exchange of qualified asset: housing.

Status: (Introduced - Dead) 2022-04-26 - In committee: Hearing for testimony only. [AB1771 Detail]

Joel, I appreciate you sharing this with me and passing along the link as confirmation. Have a great weekend:)

Quote from @Joel Forsythe:

That bill never made it out of committee. 

Hi Joel,
I must’ve misunderstood and thought it passed  already. Is it a mute point and didn’t pass? 

Hi Brad, 

Thank you for your reply to my question. I'll have to keep this in mind as I embark on the next stages of my REI journey. I'll try to view this as a complication and just an expected hurdle to overcome in my path towards REI success.

Kind Regards,

Tahirih

Hello!

I’m very new to real estate investment community (literally two months into learning via reading, joining bigger pockets), and have yet to invest in real estate, so please be kind in your response.  Thank you! 

I'm learning about all the different types of REI and house flipping seems to be the one I have the most interest in. However, I recently learned about the AB 1771: The California Housing Speculation Act that took effect on January 2023. The new bill imposes a 25% tax penalty if there is resale of a home within the first 3 years.

Link to bill: https://leginfo.legislature.ca...

Questions:

-I was wondering if anyone is aware of how much of an impact the tax penalty will have on the house flipping industry in California?

-The bill also raised a social question I have about the impact of house flipping on communities with historically low socioeconomic resources. Any thoughts on this? 

TIA! 
Tahirih