All Forum Posts by: Account Closed

@Jay DeCima

Thank you very much for the reply! I appreciate you sharing your strategy and providing all that information. Could you please clarify one thing though... were you searching for seller financed properties with 5 SF homes on ONE parcel? Or, were you looking for run down multi-family properties with 5+ units on one parcel? 

I just want to ensure I'm understanding you correctly. I found my first property off-market, and would like to continue down that path if possible. 

Thanks again,

Taylor Corder

Hey @Chris Mason,

I've definitely read some of Wes Blackwell's posts! I've read quite a few of yours as well. Thanks for all the content/information! 

Hello all,

I just looked at my profile and realized it's been nearly 2 years since I've joined the BP community! It's crazy how quick the time goes when you're focused on your goals. 

When I first joined BP, I filled out my profile like everyone else. My "Real Estate Goals" were the following: 

• -Flip properties in California
• -Buy and hold out of state 
• -Build a large portfolio of cash flowing  properties 
• -Become Financially Independent 

Since acquiring my first property, educating myself through the BP forums/podcasts, reading RE books and talking with experienced investors, my goals have changed a bit. Now, my goals are to:

• Flip properties in California 
• Build my cash reserves 
• Build a large portfolio of cash flowing multi-family and single-family homes 
• Become a full-time investor and financially independent

Obviously, my goals haven't changed drastically, but I've added building cash reserves as a major goal. I've heard plenty of people say that you need cash to last in the RE game, and that is something I'm definitely focused on. Longevity is key for me. 

My question for everyone out there is: How have YOUR real estate goals changed since joining BP?

Looking forward to everyone's responses and input!

-Taylor

@James Kojo

Hey James,

I appreciate your reply! Thanks for the information and providing some of your personal experience. 

In regards to your California properties, do they all cash flow  (and did they at the time of purchase)? Or, did you simply bet on appreciation during the time of purchase, while looking for something that would at least break even?

I'm really curious about long term buy and hold strategies in California. I know plenty of people who own more than one property here, but I don't see how it's feasible to scale due to the high cost of entry. Unless, the goal is only to own a few properties and do so every few years. Or, hold cash reserves until prices dip and buy as much as you can.

Personally, I could probably buy a few more properties with low money down (if I kept moving and changed primary residences every few years), but I wouldn't have the cash reserves to go beyond that and my properties would break even at best (likely negative cash flow after cap-ex and other expenses). So, I'll likely be selling my first property soon. I'm just really torn, because I'd like to hold it, but I need the cash to scale/grow.

Bay Area residents*** :)

Hello all, 

I understand real estate cycles are market specific, but I've always been curious about the reference to California as a "boom or bust market." Is the term "boom or bust" simply reference to appreciation going crazy during booms, and then declining rapidly once we reach a recession or hypersupply? 

It makes sense to me that "boom" would refer the the large increases in equity that can happen over night, and then be lost in a "bust" almost instantly.  

If anyone reading in California has been through a few market cycles, could you please let me know how bad the busts have historically been? Is there a percentage that home values typically fall?

I'd appreciate the info. Thanks in advance!

-Taylor

Hello Sacramento BP community,

I’m sure many of you have seen the Wall Street Journal article from a few days ago, regarding the Sacramento market "real estate boom." If not, here’s the link: 

https://www.wsj.com/articles/sacramento-is-califor...

“Sacramento Is California’s Newest Real-Estate Hot Spot. The once-sleepy government town is attracting a rush of buyers and flurry of development near its Golden 1 Center, a new NBA arena.”

For full disclosure, I haven’t had a WSJ subscription since college and I’m unable to read the full article. However, I believe the above title and short video say it all, or at least enough to spark a discussion.

For those of us from Sacramento (and surrounding areas), this isn’t new news. We’ve all seen (and read about) the influx of buyers from the Bay Area, rising home prices/rents, double digit appreciation and multiple offers on listings. The video points towards the migration of Bay Area residence and Golden 1 Center as some of the driving forces. It also touches on a few of the new developments in the city.

To build on that, I keep a close eye on a few zip codes/areas in Sacramento that I like and know extremely well. I’m seeing new housing built in areas further from Downtown and East Sac.

My questions and talking points are as follows:

-What is the current housing supply of Sacramento and surrounding areas? I’m under the assumption that the supply of housing is still low.

-What would be considered a normal/healthy supply of housing in the area?

(I’ve heard agents spout off these numbers nonchalantly, but can’t recall exactly what they were. Hopefully someone can help.)

-What are some major housing developments going on in the area?

-Is enough housing being built to provide a market equilibrium?

-If so, based on the rate of housing being built (existing and anticipated housing developments ), about how long would it take to reach a market equilibrium?

The goal of this post is to gather a better understanding of where Sacramento is in the real estate cycle. Not just based on personal opinions, or by feel, but by the numbers.

There are number of Bigger Pockets members in other markets that are nervous about reaching a market peak and move towards hypersupply. It’s clear Sacramento is still in the expansionary phase, but how long will it last?

Please feel free to post information, links, and just share your personal/professional opinions. Again, it would be nice to gauge the market based off numbers, but we can’t ignore political, social and other economic factors that may affect the market. 

I look forward to everyone's input. 

-Taylor

Lennon Lee just curious, but why is Sacramento on your list? I'm in the market and interested to hear an outsiders take. Cheers

Piggybacking off what Derek Daun just said, there is an increase in migration to Sacramento. With that increase in population, comes an increase in demand for housing. Sacramento currently has a low supply of housing in desirable areas. So, for more basic economic reasons, the low supply of housing and increased demand are drivers of the price increases (in terms of both rent and home values/sales price). I'm not a real estate pro, but every broker I've talked to lately says the same thing. "Inventory is low."

Embert Madison jr thanks for the reply and sharing your opinion! I undoubtedly want to build a large real estate portfolio. However, with California being a tenant friendly state, I'm unsure about buy and holds in Sacramento. I know a lot of people who are landlords in Sacramento, and I've heard good and bad stories. I guess I know a local real estate attorney now though! Haha. What areas of Sac are you looking to buy in next, Embert?