Out of state investing. CA resident.

[Anthony Pascual]

Hi everyone. I'm a new member here. I've been heavily considering investing out of state. I currently work in real estate sales here in CA but I also do some personal flips in the Inland Empire (San Bernardino County). I currently have about $500,000 to invest and originally I was looking to flip then buy and hold here in CA. I have had a couple of colleagues who invested in units out of state which is what got me interested in out of state investing. Prices here in CA are ridiculous! 

I have been looking into Texas but I would like to get opinions/suggestions from those of you who are investing out of state. What states/cities should I look into? Are you starting LLC or other corporations in that state? For those that invest in Texas, are the property taxes really that bad? Any pointers on what to prepare for those out of state investments?

I'm open to any and all suggestions/help.

Thank you.

[Amy Kendall]

My husband and I are just about to close on our first out of state property in Arizona and we are under contract on a fourplex in Florida as well.  I would say to invest wherever you are comfortable with the numbers, and where you can find a team that will help you out.  I found comfort in calling property management companies in the areas I was considering to verify the rents were realistic and the area was good.  They were very helpful and have a lot of information to share.  A good realtor can be a great help as well.  For example, I often take walk through videos for clients of potential long distance investments, and even help them place tenants.  A realtor could also help answer your questions about property taxes as well.  For reference, I looked at a duplex in Houston and the taxes were $5689.42/year.  The tax rate was 2.53%.  Good luck!