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. 

[Zap Martin]

Hey @Dan Tsunekawa

Looks like everyone has given real good advice. 

I am an investor that lives in California (San Diego) and has had and currently has investments out of state (Nevada, Missouri, Mississippi). I use the triple check method when dealing with out of state purchases. 1 - Check with property management companies and ask them for Investor friendly Realtors. 2 - Check with Realtors and ask for property management companies. 3 - Call Contractors/Inspectors and ask which Realtors & Property Management Companies work with investors.

What I've found is that after I spoke with multiple Realtors, Property Managers and Contractors, I would start hearing common names and automatically narrow down my search for who knew the area and had experience working with investors. 

By the way, I work with a team of investors down here in San Diego that may be interested in the property you are selling? I can also introduce you to a couple investors in Houston as well. 

Feel free inbox me if you have any questions!