Better to buy one expensive CA property or several out of state?

[Joseph V.]

I've been considering purchasing one rental property in california. I've heard some recommend buying several properties out of state for the price of one property in california? what are your thoughts? Which would you choose?

[Aaron Mazzrillo]

Not nearly enough info for anyone to make any kind of logical reply at all.

It would be far more helpful to post two deals you're considering, than posting a loaded question that is impossible for anyone to answer. All you'll get is pro-California investors saying stay put, like myself, vs out of state investors and turn-key suckers telling you to buy 2,000 miles away in a pathetically poor appreciating market with sub-human tenants. Go ahead and do it. You'll regret it the day you close escrow and every day until you sell. 

My goal this year is to sell ALL my out California GARBAGE and buy wholesale here in California. It is still and always is a great time to buy in California if you know what you're looking for and know what you're doing. I've bought houses every year since 2003 and made money every year. Even in 2005, 2006, 2007, 2008 all the way to the house I just bought last week. I've only lost money on four deals - three of which were out of state and the last one was a mobile home in a senior park in Brea right before a stock market crash. Yeah, pigeon holed myself big time on that one.

Interview every high school kid across the nation you can find and ask, "When you graduate, how would you like to move to (insert whatever podunk, agricultural, poor, boring place you're thinking of investing in here)?" Answer will be "No" 99.99% of the time. On the east coast, every kid (that has a dream) wants to move to Florida. Everywhere else in the country, it is California. 

You're already here so keep your money here. Out of state is where wealthy California investors go to lose money. If I were in Chino Hills, I'd be looking at Pomona. Every free chance I had I'd be out there driving the streets looking for something I could buy wholesale. All these people whining about "Everything is too expensive" still think they need a real estate agent to buy something and spend their time looking through Homes & Land magazine wondering why they can't find a house listed at 70% of retail value. Ignore that noise because that is all it is - static - Static action, static money, and static noise.