Best markets to live and invest?

[Josh Deeden]

My wife and I have finally made the decision to leave Southern California and seek greener pastures.  We are in our early 40s and don't have a retirement plan or much saved, and we've come to the realization that the status quo is unsustainable and that we need to start making better financial decisions to set ourselves up for the future.   We currently rent in an affluent neighborhood and pay through the nose for the privilege.   Additionally, I have a pretty decent tech job and what I pay in taxes every month is enough to float a mortgage on a decent house in most other markets.   And it kills me a little inside to know that.   But as much as we love California and all of its amenities, living here isn't in alignment with our financial goals and it's time for us to leave.

And now we're confronting the decision on where to move, and where in the country would best serve our financial goals of reducing our personal living expenses and present the most opportunity for acquiring and operating income property.    We also want to find some place we enjoy living, or at the very least, tolerate for 5 years as we build our portfolio.  I personally would love to live in Texas... San Antonio is the most likely candidate, but I know that Texas is a hot market and I am left wondering if maybe I'm just too late to the party there.   The property tax situation there seems like it could be a significant risk to cashflow, especially given the appreciation we've been seeing there.    And I wonder if we'd even be able to compete as part-time/beginner investors there.   So what do you guys think?  Does Texas still make sense for small/part-time investors?   Or should I be looking elsewhere?

Or, let me re-frame the question just a bit.   If we wanted to optimize our lives for a low cost of living/tax burden the most opportunity for building our real estate portfolio in a beginner-friendly market, where should we be looking?  We're pretty much open to any/all possibilities.   What do you think?

Appreciate all of your input!