Learning from your wisdom - Posted by AFlagg

import · December 6, 2004, 11:15pm

Posted by AFlagg on December 07, 2004 at 11:35:59:

One user sent me an email informing me that I’m missing an “end game.” Good point. The end game for now is to buy and hold until we retire (or until we start doing this full time.) There are probably better opportunities around the world with a better GRM ratio than the bay area, but I’m concerned about all the long distance travel while we’re working full time.

import · December 6, 2004, 11:15pm

Posted by AFlagg on December 07, 2004 at 24:15:19:

I’m a first time REIer, but own my own home so, know the process. I’d
love to get your thoughts on my assumptions on how to dive in and hopefully
learn from your experience and wisdom.

Both my wife and I work and have jobs we like in the SF bay area. We have
substantial $ saved for a down payment. We are currently not ready to take
time off to do a 3 month fixer as described in a previous story, but can put
some weekend work into it an hire contractors. I’ve read about five books on
REI, some with reasonable sounding advice (Irwin) and some with advice that
just sounds silly (eg Roger Woodson’s book “Profitable Real Estate Investing”
says that the best way to get started in REI and property management is to
buy a building with 4 or more units. Are you kidding? It might be a better
investment, but doesn’t sound like low maintenance to me.)

Given our situation, I was thinking:

A single-detached with one or two units max.
Manage it ourselves so we can cut our teeth, see if we like it, see what a
management company really does.
A cosmetic fixer or a house in OK shape (I realize we may not be able to
buy it cheap, but we can’t spend the time)
A long-term rental investment (Since we’re not buying the cheapest deal,
we’ll need to hold it for longer)
A property w/in an hour of driving so we can get to it quickly
No Condos (condo fees eat up profits)
No 4 unit buildings as Woodson suggests

Would love your advice.