Out Of State or In State?

[Jay Eubank]

Hey BP, 

I'm Jay, a real estate investor in Las Vegas, NV. I am just wrapping up my first deal that I did as a live in flip this month. I am looking to RAMP up my real estate game as my long term goal is to achieve 100 units (SFRs, Condos, Townhouses, Multifamily) at $200 cash flow per door. I am kinda debating myself with what action I should take.

I have set up a direct mailing list here in my city for folks that are older that have a good amount of equity in their home that have recently defaulted, etc... I just started it about 2 weeks ago. I want to continue this campaign for the next 6 months to see the outcome of it. 

My big debate in my head is whether I should continue my efforts here in my city or work out of state. I have about $40k saved to do deals and family and friends that are willing to loan me cash to do the rest of the deal. And the average SFR home in a decent neighborhood here is priced at about $250k-$300k. I know the midwest has a lot cheaper markets that I would have a lot more power to leverage with given that I already have some cash. What do you think I should do? What method is working for your business and why?

I also have started somewhat of a network here and have a good base of contractors and tradesmen to do the work for me as I run a roofing company and have gotten my contacts this way. I feel like my network here is too strong to try and invest out of state, but I feel like my money would go 10x as far out of state.