How to transition from residential to commercial real estate?
I️ currently own a couple condos in Southern California. I️ only bought them a year ago. They have tenants, but I️ am not cash flow positive on them. I️ have only been benefitting from tax deductions, amortization, and appreciation.  However, after some research it seems CRE is the next big step. I️ think the biggest challenge for me is affording the down payment on a good deal. Should I️ shop out of state? How hard is that to manage? Am I️ in danger of overextending myself? Should I️ wait to have 4 condos before consolidating? Should I️ allow more equity to build and save more cash for safety? I️ am 29. My goal is to have $1M net worth by 35. Currently at $250k. Any advice on timing on next steps? I️ am trying to learn as much as I️ can and save as much as I️ can to prepare for my next big move.
[{"id": "dpouvj7", "text": "pick a pony, there all a gamble. brick or stick they need someone to babysit.\nIf your good at hunting residential income winners then commercial is the same gig except less late night calls for clogged shitters.", "replies": [], "depth": 1}, {"id": "dpp3n64", "text": "You're looking for cash flow, appreciation, how much money do you have for down?\n\nI'd stick with residental for now.  But you need to find a way to cash flow or you will not be able to buy indefinitely.", "replies": [], "depth": 1}, {"id": "dpp7a5t", "text": "Probably $150k max for down payment. Ideally looking for cash flow and appreciation for a cash out refi in the future. \n\nI\ufe0f think you are right. I\ufe0f need to wait a bit longer.", "replies": [], "depth": 1}, {"id": "dppicnh", "text": "The question as whether or not to shop out of state: I'm a commercial agent in idaho and talk to new people from California constantly who want to put money up here. The value of your dollar is drastically increased up here, or many other places.  Only problem being you aren't local if something goes south and you need to get to your property. But in our town for example,  a brand new 8k sf flex building on .75 acres would be $700k... do that math for California. ", "replies": [], "depth": 1}, {"id": "dpv5jnb", "text": "If you really want to transition into commercial, try B and C areas of California like the I.E. and Sacramento. Also, consider a newer built STNL building out of state that is already cash flow positive.", "replies": [], "depth": 1}]