All Forum Posts by: Wilson Lau

Hi @Shubham Porlikar. Chronologically, I would suggest talking to a lender first to figure out how much you can qualify for. Alternatively, you can try and figure out your DTI (debt-to-income ratio), that should give you a general idea as well. Let me know if you need an introduction, happy to share with you my lender's info. Next is to explore what strategy (long-term rental, short-term rental, mid-term rental, fix and flips, syndication, etc...) fits your investing goals and then your location.

Best of luck and feel free to reach out if you have any questions!

It's oftentimes the small details that get overlooked - light switches, lighting, trims, closet doors, and if applicable fireplace mantel...Also don't forget about picking a harmonious color palette!

Hi @James Khail. Based on your criteria, you have hit some of the good ones in your list. Brentwood has good appreciation and decent for rental. I suggest looking there. Certain areas in Hayward and San Leandro could meet most of your criteria but they are in the $1M+ range. I would also add Mountain House to your list. There are a lot happening over there. Happy to share with you some market data on these cities!

On a side note, I am not an expert on Manteca, Turlock, Modesto, and Sacramento areas, perhaps someone can chime in on those.

Hey @Grace Chee. I'll send you a DM :)

Hi @Payvand Milani. Welcome to the platform and happy to see another healthcare provider here :) I am based in San Jose. Happy to connect!

Many of the local investors are investing in Santa Teresa, Gilroy, Brentwood, Oakley, and Central Valley. These areas won't give you cash flow without significant downpayment, but their price/rent ratios are much more friendly compared to other cities in the Bay Area and you can also benefit from their appreciation.

Another thing to put on your radar is the Real Estate Professional Status (REPS) election. I know a few dentists and family medicine physicians with stay home spouses who qualify for REPS, which gave them significant tax benefits. Of course, please consult with a tax professional for more details. Best of luck!

You can also consider doing a 1031 exchange to an out of state property or to multiple properties. Of the 3 1031 exchanges I've dealt with this year, 1 seller exchanged a SFH in Redwood City to several properties in NV, 1 exchanged a SFH in Fremont to a multifamily in Seattle, and 1 exchanged a SFH to a few townhouses. They were all cashing out from years of appreciation into cashflow. 

As far as intermediary, my clients have good experience with Old Republic Exchange. Happy to connect you if needed.

Hey @Jacky Peng. That's actually a very reasonable quote. It usually runs around $250-$300 for a garage conversion. 

Quote from @Li Kia:

hi All, I would love some input. My tenant will move out in 2 weeks. I am thinking about  replacing the floor for the common areas, bedrooms, bathrooms and private hallways for my rental in a nice neighborhood. The floor guy suggested me using luxury vinyl (I think also called SPC) for all these areas. Is it ok to have vinyl planks in bathrooms?  
The entry hallway (left to living room, straight to kitchen, right to private hallway leading to bedrooms and bathrooms) has tiles - same tiles as the ones in the  kitchen.  he suggested to leave it since it is a high traffic area. Should I replace tiles with the luxury vinyl to look nicer (extra $1k to remove the tiles for such a small area, and vinyl would not be durable) or leave the tiles?

My kitchen is in pretty good condition, but has telecom ter top. Should I replace the cabinets and install slabs? I was told my unit was dated. Is it worth it to upgrade it? Expensive to remodel a kitchen! 

Hi @Li Kia, I would suggest keeping the tiles and probably replace the damaged carpet by new carpet. If you have plans to sell it in the future, you probably want to do a full remodel anyway, so there is no point of spending too much on it now. For kitchen, if it is in good condition, I would just leave it. Your goal now should be to put in the minimum amount of effort and money to get your unit to rentable condition so you can max out your capital return before you sell it.

Quote from @Wayne Toh:

Hi BiggerPockets Community , I’ve just recently graduated and is working in the bay area. I really want to get started in real estates. My current conditions are that I am expected to go back to graduate school in a year but I am unsure which part of US that would be in. I am currently pondering between three options.

1. I buy a primary here in the bay area but that would stretch my budget out dratically because of the high prices here but turn it into a rental after. Due to my limited income, this could even remove the option of low down payment just for me to see an acceptable mortgage payment. If this is the case, should I start of with a condo or SFH and house hack. 

2. I invest further away (maybe Central Valley/Nevada) but I am still able to manage the property. This allows me more purchasing power and I still have peace of mind being able to see the property as I am just starting out and want to learn more, (rather than leave it to a management company).

3. I invest OOS, where my risk tolerance is the lowest and may end up purchasing a lower priced property well within my budget where I can cover any vacancies/emergencies using my own capital. If so, what are some good appreciating markets with good economic growth and safety? I've been looking into areas in Wisconsin and North Carolina  (I chose these areas  because I have people there who could potentially help me out in the area) but all market ideas are welcomed. 

I am very new to all these ideas and have been watching the podcasts, youtubes and reading articles as well, trying to narrow down my options. So, to all investors who are willing to share some ideas, I greatly appreciate it and with your help, I hope to become a reliable member in the future as well!

Hi Wayne,

Good job on watching podcasts and reading up on rei! My question to you is why invest now? Having been through grad school myself, I understand the stress and uncertainty that comes behind that diploma. Potentially, anywhere could be out of state, unless you are only applying in certain areas within a certain state. Why not wait till you are in grad school? You can consider doing a househack, then after you graduate, you can simply rent out the entire house for cash flow.

I would be caution about Wisconsin. Having lived in Minnesota for 4 years, I started off thinking I should invest in MN or WI, but the homeowner insurance there is $$$$ due to the horrendous weather.

Best of luck!

Quote from @Gladys Villa:

Hi all! I am new to this community and I'm so excited to learn a lot of things! My husband and I will be ready to buy a home in the next 6 months, but we decided that we want an investment property instead. However, since we don't have any experience in rentals, we don't know if we should buy a single home and get it rented out or buy a multiplex. I feel like if we buy a multiplex, it becomes too risky with a lot of maintenance and possible vacancies. On the other hand, if the single home doesn't get rented out, we can just move in there too! 

What are the things you should consider in buying your first home rental property? Thanks for all your answers! 

Hi Gladys. Everyone's journey in real estate investing is different, but here are a few questions to get you thinking:

1. What's your budget? 

2. What are you hoping to achieve with your investment property?

3. How would you define a successful investment property?

Here is a real life example with my client (numbers are altered since we haven't closed yet): Activities are a lot slower in recent months in many cities across the bay area. We found this house that doesn't need much work but the house has been on the market for 3 weeks, comps are showing $1.6MM, seller now lowered the asking to $1.5MM. Guess what? We are coming in even lower. My buyer's plan is to live in it and use the equity a few years down the road, whether is HELOC or a cash-out refinance, to fund other deals. That worked well for my client's specific circumstances but certainly would not work for everyone. Best of luck!