California Investor looking for right strategy/ market

[Michael Iacono]

Hey BP friends! 

As the subject states, I'm a new starting out investor from California. I'm just starting to lay the groundwork for my real estate investing career. Just finished Brandon Turners "Rental Property Investing" book and I'm continuing laying a strong foundation. Looking for some advice/ direction in the subject of which market I should chose. My goals are steady good cashflow with favorable price- rent ratios so that my limited beginning capital can go a longer way and I can, over time, acquire more doors. Based on my known objectives I feel that California is almost entirely out, very high priced property and not a ton of cash on cash return on investment. Any pointers I get would be very much appreciated. Additionally, my brother lives in Virginia, so anywhere in the North Carolina/ Virginia area offers me the personal connection that I understand is extremely helpful when investing out of state. I am not opposed though to creating connections in markets like Texas, Ohio, Florida or any state for that matter. I am not afraid of the work and I have a good mentor with me, only problem is my mentor is exclusively experienced in California investing. Thank you everyone.

[Michael Iacono]

@Aaron K. Thank you for your advice and insight, I'll be sure to consider insurance cost as part of my analysis and ensure there is plenty of available cashflow wherever I do chose to invest to make sure I cover all cost including insurance, maybe this means I need to aim more towards MFR if cashflow is my main goal. @Brandon Sturgill That aligns what I have previously heard which is why I am heavily considering North Carolina, close proximity to a personal connection as well as a lot of buzz that indicated potential for appreciation. Though I don't want to over invest in potential appreciation/ prospecting as it is still gambling, I wouldn't mind killing 2 birds so to speak by finding some good cashflow deals in an area that is likely to see good growth in the coming years. I do fear however, that parts of North Carolina have already become a little too expensive which can make it difficult to find something where the numbers really work. Where I am at now is talking to as many investors as possible to almost crowd source as many personal experiences as possible so that I can search for common denominator markets, property types, and various other strategies that can help me go into an area with confidence that I have done as much research before hand as possible. Once I feel that step has been completed adequately I plan to start booking a couple of trips and doing some area specific team building/ networking. Then lastly, I will start buying. Goal is first out of state deal to be closed by end of 2019, depending on how smooth the process goes and how much confidence I have in my future team, could be looking at closing two deals by this years end. Again thank you for your guidance. @Kyle Deutschmann Thank you as well I have sent you a DM!