New California invester OUt of state investing

[Charles Curley]

Hi I currently live in San Diego and I am super new to REI. My goal is to have my first property by the end of the year. Obviously I won't do it if I can't find something that's good but that is the goal I am setting for myself. Right now I am thinking about multi family homes that provide good cash flow and slowly moving up, basically using plan 1 from THe Book on Rental Property Investing, chapter 3. Where my problem lies is that I live in San Diego and I don't think that it Ian very feasible to do here (could be wrong though, again new guy here). So I might thinking my move might be out of state investments. I was just wondering what you all think think of that being way more experienced then me? Also if that is the right move what are the best markets for cash flow? Thanks!

[Michael Swan]

Hi @Dan H.

and all on this forum thread. Since I have been brought up a few times here, make sure you listen to podcast 238 to get my real story. 

Update on me, I now have 8 apartment complexes and 122 front doors in NE Ohio. I currently have gone from $50,000 cash flow on my pricey RE condos in San Diego that I purchased in 2011 and 2012. I have traded in all my pricey rental property in San Diego. Now after a few learning experiences, I have $160,000 cash flow and rising. I would have been at $200,000 cash flow if it wasn't for a few learning mistakes I mentioned on Podcast 238. I have increased the NOI significantly on 5 of the 8 apartment complexes so far. My combination of forced appreciation Multifamily Millions style (David Lindahl), has allowed me to not only experience over 3 times the cash flow I was getting on those condos in San Diego, plus exponential appreciation. I love how these loans have 20 year Amotization schedule and we expect that these properties at the end of 5 years of ownership each have only 40-50% debt to value max at the end of the first 5 years of ownership. So, while Dan I sent true that since 2016 my San Diego condos would have appreciated more than when i 1031 exchanged with about 100% appreciation after 3 years of ownership, that $160,000 and rising cash flow, along with, the 1031 Exchange, 20 Year amortization and forcing appreciation, while dramatically reducing loan to value, I think was best for me and my family.

Watch podcast 238 and reach out to me if you want to talk on the phone.  I save time during the day to talk to BP Nation members.

I love this stuff!!

Swanny