Looking for CA or NV real estate investment with 500K ready

[Lily Irene Stevens]

Hi all! Husband and I are sitting on quite a bit of cash due to our exercising options in high-tech firms. We can invest about 500k in cash or get a mortgage if it makes sense. I assume we would qualify for a 1MM mortgage given assets and income (dual income, high-tech, current home paid off and worth over 2MM). 

We're debating on what our primary goal is: cash flow or appreciation. Of course, we'd like both but the ultimate goal is to get cash flow. We do want to purchase in an area where we'd like to live or even retire one day. I know we could get a lot for the money, in, say, Kansas City, but I really don't see us going that far from home. 

Ideally we'd buy no more than 3-4 hr drive from the Bay which of course means paying a ton of money.

I am (maybe unnecessarily) scared of LTR because CA is such a landlord-unfriendly state (I have heard too many horror stories) so we are leaning towards STR. But to be honest, we are clueless.

What are the thoughts on Central CA? Paso Robles or surrounding towns? Coast would be nice but coast costs 2MM+ and I cannot see it making sense for STRs. Northern NV is also within reach. North Tahoe has become way too regulated so perhaps Reno?

I am not sure where to start. Call an agent? Thanks in advance for all the help. 

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