Markets: stick with one or diversify?

[Paul Yan]

I'm looking to hone in on a market for my first out-of-state property and wanted to get your opinion - what are the pros/cons of building a portfolio of properties in the same market vs diversifying by purchasing properties from different locations?

I've been presuming one con for different locations is that you will need to build out a unique team for each location. This makes me think the first property location is an important decision because the following properties should be in the same location to take advantage of the team you've already established for the first. Am I off base? Are there compelling reasons to purchase from different locations?

[Frank Wong]

Hi Paul,

No brainer, find one market that you like most and won't mind visiting and build your portfolio there.  You won't have the time to explore and invest in all these different markets.  You want to master one area and drive it deep vs be avg in a few and go wide.  

Area is just a part of it.  You need a system on how to analyze, find, and buy your rentals.  That is more important than picking the City and State.  With the right system, you can make money anywhere.

I invest in OOS and live in the Bay Area.  I am in one market in TX and I just keep repeating my system and my edge over and over.  This makes managing easier and frees up my time here.  No value for me to go to a different market.