Should a beginner buy local with lower cash flow or out of state?

[Lauren Olson]

I am a beginner looking to buy my first single family rental for cash flow, but my local area of western Oregon has higher prices and potentially lower cash flow. I am interested in out of state investing, but seems like a jump for someone just starting out.

I would like to start with a local property so I could be more involved and learn from it, but with higher property prices it’s also a larger investment and Oregon is not the most landlord friendly state. Any advice on a western Oregon market and out of state options would be greatly appreciated!!

[Nicholas Cook]

@Lauren Olson It really depends on your financial position and your goals. Oregon will bring lower cash flow and more regulations. The upside is general appreciation trends, low time on market and greater liquidity of the property than less popular markets.

While having a property locally is great for learning, you can still learn by buying out of state. The key is to have a solid property manager. A property manager will keep you informed and help you navigate the landscape of being a landlord. The key is to find a reputable one. 

There is no perfect answer which is why your goals will help inform the best choice for you.