california residents investing in Houston

[Dan Tsunekawa]

I am currently living in the east bay area of San Francisco, with a rental property in San Diego. I am thinking of selling the my SFR in SD and using a 1031 to invest in a more cash flow friendly market. I have been thinking about investing in Houston TX and I'm wondering if any fellow Californians have gone this route.

Im thinking of doing a simpler deal with maybe less immediate equity at first just to get my feet wet and satisfy the 1031 exchange timeline. But then after that I want to pull equity out and start using the famous BP BRRRR strategy to expand my portfolio.

I understand there is a lot of complications with out of state investing, but it seems like it can be done and that the rewards can be worth it!

Any guidance and wisdom is much appreciated.