First buy--out of state vs in state

[Curtis K Thomas]

Hi everyone! We are just starting out in the investment world. We are at a personal crossroads in where to start. We currently live in California, but do not want to invest here. We do not think we have enough capital to invest here, and are thinking about investing out of state. However, we do not have any experience in real estate and are not sure if that's a good first move. Our capital is aging though and we are feeling the pressure to get into the industry before we've put ourselves in a position with even more capital limitations. What are thoughts on investing out of state with minimal/no experience? Does it make more sense to search for a good deal in California to start out and gain some experience? Any advice or any experiences that relate to where we are would be extremely appreciated. Thank you all!

[Ali Boone]

Hi Curtis! Well I come from the stance of, out-of-state for newbies is totally doable and buying in CA is risking a lot more money to have to still learn the same lessons (or more) as you would elsewhere. Now I don't necessarily support running out-of-state and BRRRR-ing or flipping, but rentals are achievable.

It 100% depends on the team you are working with and where you are getting both your knowledge and your properties. I started out (I also live in SoCal) buying out-of-state properties for myself and it's worked out great. There is some knowledge you need to know, OR you can have a legit rockstar team to be your knowledge foot for you- at which point you just need enough knowledge to a) know which team to work with and b) know how to conduct proper due diligence.

Happy to chat anytime in more detail if you want to shoot me a message!