confusion regarding out of state property as first property

[Megha Sharma]

I live in San Jose and has to plan to stay in the city for another 6-7 years. Is it a good idea to buy your first ever property as a out of state property as home prices are very high here. Due to recent changes (because of covid) my husband can do work from home so we can move around bay area like 80-90 miles but can't move out to another city or large distances due to company policies and all. We are confused whether to look for properties here as we will be paying rent which costs another 2k-2.6k per month for another 7 years or should we invest in OOS . If we look for property here, it will be definitely in some bad condition and not so good location as home prices are high and we won't be able to afford otherwise. Is it a financially good decision to invest where you stay to prevent high rent cost or OOS is a better option when you can afford some good house in oos property?

If I opt for out of state property, I'am looking in the range of 110k to 130k SFH property which have good appreciation and if there is cash flow it's great otherwise break even will also work. In which market should I look?

[Cerwin Haynes]

@Daniela Andreevska @Megha Sharma

Hello all.

Fascinating that Syracuse and Cleveland are mentioned as two markets that offer good combination of affordable property prices and good return on traditional, long-term rentals. I lived in Syracuse for several years and bough a duplex in 2015, and I have a friend who bought a duplex in Cleveland in 2017. We both attest to what Daniela said, provided that you do homework on both markets.

For Syracuse, I'll tell ya what I've noticed lately: it's a seller's market right now - even in the lousy neighborhoods folks are getting their asking price and then some. That said, I've seen 3-unit and a 4-unit available for 99K, 100K (some already have tenants) that can absolutely cash-flow. Poverty levels are high in several areas, but gentrification has been seeping into some of those neighborhoods. I'm seeing a bevy of recently renovated single family homes hit the market. Houses are appreciating, and that's something because Syracuse is not known for being a market for good appreciation - I'm going to pursue an appraisal next year for my property to explore HELOC opportunities.