Bad idea to start investing out of state during Covid?

[Ruben Esparza]

Live in HCOL CA. Trying to find a better plan than pouring most of my savings (170K) into down payment for a 650K House I am currently pre-approved for while living with parents.

What would be the biggest obstacles or risk to buying 1 or 2 rental houses (or a duplex) that cash flows in a lower cost of living region? Would likely need to pay for property manager. I see the obvious risk of becoming first time landlord during instable economic times with high unemployment. Also, the markets I like are relatively less expensive than mine, but not the best cash flow like Mid-West. Mainly, because I would like to invest somewhere I already like and relocate to in future (Nashville, Orlando, Charleston). I can find a nice house in these places for 300K but probably not the wisest investment and would still eat up a good chunk of my savings for 20%+ down payment.

I am newbie and barely contacting lenders and figuring out if I would be qualify for a second home (On Title for my Parent Townhouse) vs. investment property.

Just trying to make the smartest move for long term wealth building.

[Jonathan Greene]

What makes you think that investing in a single-family home where you live won't earn more in appreciation over the next three years than investing out-of-state in rental units that you will pay people to manage and/or flip? The problem with all of the advice out there is that it is over-focused on doors and numbers and how many you have. The best investments I've made in my life, and the most money I've made on them, has been buying single-family homes to live in and slowly working on them and upgrading them while I was able to enjoy the amenities and then selling when the home had hit peak marketability. When I spend five years waiting and then clear 200k, I am happy with that and the stress-level is much less than managing five out-of-state rentals all making a very average amount of month until a furnace breaks or a roof caves in. Do you need cash flow or does everything in these boards make you think you need cash flow? If you think about investing as a whole, long-term investing, when you can also get enjoyment out of something, is not something to ignore.