Investing in California?

[Csingh Singh]

Hello Guys!

As the post shows, I am "starting out" on my investing journey. I currently have my previous home for rent but the property was unfortunately trashed by the Tenant. Following the laws has been a "process" to call it nicely. I wanted to ask if anyone who was originally an investor from CA moved to other landlord friendly states like NV, AZ, TX and found their market and how that has been. 

Any feedback would be appreciated!!

[Julia Lyrberg]

Hi Csingh, Sorry to hear about the tenant issues—that can definitely be a difficult experience. Many investors from CA have found success in states like NV, AZ, and TX due to their more landlord-friendly laws and growing markets. Texas, for example, has strong rental demand and easier eviction processes, making it appealing for landlords. If you’re considering expanding your portfolio, those markets could be worth exploring. 

[Michael Diossa]

Quote from @Julia Lyrberg:

Hi Csingh, Sorry to hear about the tenant issues—that can definitely be a difficult experience. Many investors from CA have found success in states like NV, AZ, and TX due to their more landlord-friendly laws and growing markets. Texas, for example, has strong rental demand and easier eviction processes, making it appealing for landlords. If you’re considering expanding your portfolio, those markets could be worth exploring. 

Agreed. Alot of investors I know from California are mostly going out of state to find deals both to flip and to hold.

[Bradley Buxton]

@Csingh Singh

You can have bad tenants in any market and lose money on bad deals. It's not a location issue. As you have experienced CA has laws that can be taken advantage of by tenants and evictions can be very difficult and costly. There are also many rental success stories in CA. Out out state can offer other advantages but CA is still a desirable place to live. Tight tenant screening is always a key factor in preventing costly evictions. You can invest in both CA and out of state and experience what works better for you and your lifestyle and goals. 

[Aristotle Kumpis]

Hi Csingh. California is certainly not landlord friendly, as you have already eluded to. Texas is a lot better. I own a home there, but never had an eviction. From what investors tell me, if you need to evict someone, it can take 30 days. It used to be quicker. But it's a lot better than CA. The states that have long eviction processes are CA, IL, MD, NY, and NJ. I'm sure there are other ones, but those are the ones that I know of. You should definitely look at investing out of state.

[Eric Gerakos]

I have invested in California for 23 yrs with 0 evictions. Like any other state you need to know where and how to invest.....

[Mike Paolucci]

Quote from @Csingh Singh:

Hello Guys!

As the post shows, I am "starting out" on my investing journey. I currently have my previous home for rent but the property was unfortunately trashed by the Tenant. Following the laws has been a "process" to call it nicely. I wanted to ask if anyone who was originally an investor from CA moved to other landlord friendly states like NV, AZ, TX and found their market and how that has been. 

Any feedback would be appreciated!!

 I'm originally from San Francisco, one of the more liberal and anti-landlord cities in the state. Landlord laws was the main factor why I chose to invest out of state and have been happy with my decision to do so. 

Tenants will trash your property, regardless of what market you choose to invest in. It's the unfortunate reality of real estate investing. That is what makes finding good tenants (pay rent on time, take care of the property and let you know when things need to be fixed) so important. Once you do find them, do what you need to do to take care of them and keep them as long as you can. 

Ohio, from my experience has been a pretty good state when it comes to landlord laws. You have actual rights in comparison to CA and the process is much easier. Toughest part will be figuring out what market you want to target, what teams to trust and employ to manage your properties for you as I wouldn't recommend trying to manage the property yourself. It'll take time to develop the boots on the ground but a good PM will help speed that up. 

[Samuel Diouf]

Hey Csingh, A lot of investors based in markets like California and New York are choosing to purchase their investments OOS in the Midwest because of the affordability and numbers making more sense.

[Kerlous Tadres]

Quote from @Csingh Singh:

Hello Guys!

As the post shows, I am "starting out" on my investing journey. I currently have my previous home for rent but the property was unfortunately trashed by the Tenant. Following the laws has been a "process" to call it nicely. I wanted to ask if anyone who was originally an investor from CA moved to other landlord friendly states like NV, AZ, TX and found their market and how that has been. 

Any feedback would be appreciated!!

Hey Csingh, 
I know some out-of-state investors from the Bay area in California and they are very happy about their investments and how landlord-friendly it is. They are looking to add more units to their portfolio. Let me know if you have any questions or how I can help out

[Colby Fryar]

Anywhere but California my friend!  Even New Mexico is better and that is a big stretch.

[Bruce Woodruff]

You can make money anywhere. It's just that with Cali, there are many additional hurdles between you and success. As long as you know that and are prepared for that, fine. But don't think the Cali is the same as AZ, NV or the Midwest. It's not. Be careful, be very careful......

[Jimmy Lieu]

Quote from @Csingh Singh:

Hello Guys!

As the post shows, I am "starting out" on my investing journey. I currently have my previous home for rent but the property was unfortunately trashed by the Tenant. Following the laws has been a "process" to call it nicely. I wanted to ask if anyone who was originally an investor from CA moved to other landlord friendly states like NV, AZ, TX and found their market and how that has been. 

Any feedback would be appreciated!!

Hi Csingh, I'm sorry to hear about your frustrating experience. I'm not from CA but I'm from Portland OR and moved to Columbus OH to pursue REI. You might want to consider Columbus OH - evictions are quick and won't take 12 months and we have good landlord protection laws. The economy is also pretty diverse and strong - lots of growth in population and the job market and there is strong rental demand. We still see 1% positive cash flowing deals with appreciation potential. Happy to send over some resources regarding the Columbus Ohio market and why it's a great market to invest into!