Investing out of state, would you do it?

[Brandon Vannier]

I live in San Diego, CA and have been looking for options locally but the numbers aren't adding up to my planned budget. I have been looking out of state at cheaper multifamily homes and those seem to bring the cash flow I am looking for. If you were starting out would you try to invest out of state, and if so what are some things to look for? 

[Dani Beit-Or]

@Brandon Vannier I have been investing out of state for close to 15 years (full disclosure I do it for a living and assist others). I live in OC CA now, SF Bay before, and in Europe before that. I started investing in 2002 While living in Europe (talk about "out-of-state" :-) )

The way I go about it - first myself:
What's my budget

Will I be using cash, cash + a mortgage, etc.

I'd list down my top/main concerns

Second, I like to look at metros that are:

1. 1.5MM and up population 
2. Growing metros in jobs and population
3. Multiple industries present in the metro (diversification) 
4. Rent-purchase price +/- 1%/per month (a $150k house should rent between $1350 to $1500/ mo)

Once I find that metro start looking at houses BUT first make sure I know how to fully evaluate and financially analyze property. 

Hope this helps some

Good luck

Dani Beit-Or