Guidance from Real Estate Experts on Purchasing my First Rental Investment

[Shola Sulaimon]

Dear all,

I am new to real estate rental investment and looking to purchase my first rental property as a source of passive income. 

I reside in Santa Rosa, CA and property prices are way too expensive, as such looking in out-of-state areas. 

I've honed down to select areas with 1 Year CES Job Change Percentage >2%...  

1. Texas: Austin, Dallas, Houston, San Antonio

2. Florida: Orlando, Tampa, Jacksonville

3. North Carolina: Durham & Raleigh

4. Georgia: Atlanta

5. Nevada: Reno & Las Vegas

I need help from folks experienced in the real estate arena in honing down to the top 5 areas & neighborhoods or any other areas you may have insight into.  I  am looking for positive cash flow with this investment,  locations with a propensity to increase in value & friendly landlord laws. Thank you for your insights!!!!

[Jonathan Greene]

First note is that owning rental properties will not be passive. This is a widespread misnomer. If you want passive investments, invest in syndications. You think it will be passive because you are planning on hiring property managers, but that's a big cost for one property and you still have to manage the manager or your cash flow will dwindle.

The way you are proposing what you want, you may get caught in a turnkey funnel and end up with less potential scale on the investment than you had hoped.