Big leap or small? CA is familiar but it would take all my ammo!

[Jc M.]

Hey BP,

First thing: thank you all for the knowledge! Super fun, amazing brian power all in one place. Def glad to be here. I own my home in SF and have a tenant downs. Other than that, I'm trying to get myself ready for my first REI prop. Currently doing many things other newbies are doing here: reading, podcasts, KPIs, networking, etc.

I'm still unsure if I should go near or far. I could probably swing a BRRRR investment within Northern California in places like Sacramento or Fresno up to $75k of MOM, my-own-money,

but that would suck up all of my dedicated RE capital for the next >12 months. My concern is that I'd blow up or breakeven and have no more chips to play. Or, I could go OOS (haven't actually been out of state recently except on short biz trips to Denver). Markets that have me interested price-point and demographic-wise are also unfamiliar to me personally i.e. Boise, Dallas-Fort Worth, Cleveland, Memphis, etc. I'd love to see them firsthand because it would lift some mental blocks but with two kids under three plus shelter-in-place, I'm not able to do so any time soon.

Do I start small but unfamiliar, learn from it and reserve capital for next deals? Or, do I take the plunge in CA and go all in?

[Aaron K.]

Because you're in the bay area you're probably investing far enough away that it won't be something you drive to regularly anyway and in that case the state line is an artificial border you've set for yourself.  Either way you aren't investing locally so pick a market you like and run with it.  Fresno is 3 hours with minimal traffic, you can get to NV if you add a half hour to your travel time.