New Investor: Which city should I choose as a market?

[Michael Delpapa]

Hello all,

I am 23 years old looking to build long-term wealth from real estate. I have complete location mobility and can move to any city in U.S. My plan is to have an owner-occupied multi-family as my first investment. Live in the unit for 2 years (no capital gains if sold) and then repeat. With my mobility I have general questions about the real estate market.

1. Which cities do you see as having the most potential for long-term growth (20+ years) in property values based on population growth, job markets, location? I have complete mobility (my advantage, i currently have little capital or experience)

2. Are there certain states that are very real estate tax-friendly?

3. It appears we are at the top of a credit cycle. Do you advise to be on the sidelines next few years and build capital? If I get 40,000 in capital should I stay out of market until there is a correction?

In terms of funding the real estate business, I am currently searching for a W2 engineering / manufacturing job in the Miami area . I just graduated with Master's Degree in Mechanical Engineering. I also am owner of a new sport called CROSSNET (check out crossnetgame.com if your interested!). Any advice on markets to take advantage is appreciated!

I love the San Diego area. I am very interested in CA and CO. I want to take into account quality of life in a given city.

If you have not read Scott Trench's book Set for Life, you should it was one of the best real estate books I have read for a young person.