First-time investor: Out of state or local?

[Bracken Bjorn]

Hi!

I am a first-time real estate investor looking to make my first deal by the end of the year! I am located in Northern Utah and would love to invest locally, but it does not seem feasible for my strategy and financial position. I am looking for insight on whether out of state investing is a good strategy for a first-time investor and/or a fit for me and my situation.

A little more on my situation below…

I want to do a rent ready (or close to it) buy and hold SFH. However, Northern Utah seems to me an extremely hot market right now, with deals closing before they can even hit the MLS. It is also an expensive market (for me) with the lower prices being between 200-250k though most seem to be 300k+. To reach my goal of buying my first property by the end of the year, I would have fewer options as I would be looking to buy much closer to the 200k mark. This has got me thinking if my cash would be more valuable out of state.

In my mind, out of state investing means extending the education and research phase and pushing the 1 year goal to maybe a 2 year goal. However, I could very well be 2 years waiting to invest locally as I wait to snag the right deal or raise more capital to give me more options. Also, achieving the 2 percent rule in my local market is near impossible but could be achievable elsewhere.

Thoughts?

Thanks,

Bracken