I would like to hear people’s opinions on what they think would be a good strategy to use for a newbie in the Southern California market.
A little background on me, I have a full time job as an IT professional that brings in decent money. I own 6 properties out of state 3 in Phoenix and 3 in Tampa. My properties are all SFR rentals that are breaking even. They are not producing any cash Flow at this time, however they are appreciating. I am married and my wife works. We have zero debt except for the mortgages on the houses and good credit in the 700 range. We have capital for investment purposes.
My goal is to generate monthly cash flow that can replace my current income and eventually transition to a full time REI career.
Please provide input on strategies that you think would work for a person that has a regular 9-5 job in a hot Southern California market.
Hey Mike. Wow you are doing great already! And your pedigree is fantastic, I think you can do a lot really quickly with the right education. I think you will get exactly what you need in these forums and with these investors.
Where are you in SOCAL? I left the SOCAL market a couple of years ago and it was hot then and, YES, still hot now. I still have prop in N San Diego county and I love the returns. My Cali porps were what really allowed me to turn full time investor.
Well, when I left I was looking at new builds there. At the time you could still get into a house pre-construction with nothing more than the holding money. Then a month before the property was finished being built you would actually have to get the loan. Now at this time you could just do a double escrow and sell it to someone else. Shoot, back then I was looking at a 70K profit in 6-8 months. Cali has the wealth builders! After awhile though, the builders were catching on and making you sign an investor’s affidavit saying you were going to move into it, wouldn’t sell it etc. Watch out for this.
Also, don’t rule out other markets for your cashflow. I know a gal who lives in NORCAL and holds 22 million in other parts of the country. It falls within her strategy parameters. That’s another very important thing that will determine what you are going to get into there in Cali.
Either way, it sounds like you are doing fantanstic already. I hope this helped you more than confused you even more.