Huntington Beach, CA · Member since 2017 · 2 posts · 0 votes
I am graduating from grad school in May, and I have the option to start my 9-5 in either Dallas or Los Angeles. I am interested in getting into the real estate game once I have myself settled. I have been doing preliminary research on where might be best to start building a real estate empire, but I am curious on hearing BiggerPockets members thoughts on the pros and cons of each location.
First off congrats on your upcoming graduation from grad school! I think it depends on which niche your considering but as two amazing pod casters say, you should live where you want to live and invest where the numbers make sense.
Best of luck,
Don't fall for that sales come on. I can assure the only folks who would emphasis such an idea have something sell you elsewhere. Good luck with your search!
Investor · Huntington Beach, CA · Member since 2016 · 70 posts · 38 votes
9y
@Account Closed
Great to see another member from HB! I know much more about this area than Dallas but long term I would pick here for two reasons:
1) From what I understand, property taxes there are double to triple what you will see here. Over time that will eat into your profitability quite a bit.
2) Purely a guess -- but if you buy in the right areas I would say appreciation will be better long term here as well. LA is number 1 on the Case Shiller index for a reason.
But I would definitely also factor in your personal preferences! Where do you want to live? Where do you have natural advantages or connections?
Good luck and feel free to reach out if I can help with anything!
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
9y
Hi! I'm in HB too and have been investing both in and out of state for the last 15 years, including LA and OC but never Dallas. If you like it in SoCal, stay in SoCal. If you prefer to live in Dallas, then move to Dallas. It is possible for a skilled local investor to make great returns in any RE market in the USA, so I say live where you want to live and learn to invest their locally. For more details, please refer to my previous 1,000+ posts on the subject. Happy to network offline as well at 4Sons brewery or other local establishment.
Torrance, CA · Member since 2015 · 54 posts · 8 votes
9y
Hi @Account Closed,
First off congrats on your upcoming graduation from grad school! I think it depends on which niche your considering but as two amazing pod casters say, you should live where you want to live and invest where the numbers make sense.
Investor · Henderson, NV · Member since 2016 · 227 posts · 86 votes
9y
Welcome @Account Closed!
The good thing you are graduating in May because you can use all this time to form your strategy. I have been looking at the DFW area for some time. I plan to grow in both Dallas and the SoCal market. Dallas, you get much better cash flow than here. Here I am going for appreciation then doing a cash out refi to purchase more cash flow properties in Texas. My overall strategy is a long term buy and hold strategy. I am staying in SoCal because I am getting my real estate license and would make more in commission here than in Texas. Thing to consider is tax, no income tax in Texas but property tax is between 2-3% and assessed based on local market value. CA has a very controlled property tax policy, but has a very nasty income tax that follows you out of state as well, which you are aware. If you are going to get a job in Dallas then that is a great place to invest, and I can give you some recommendations as well. If you want to meet up in person and talk, I am game. I really enjoy talking about real estate, and typing just takes too long, hahaha!
Huntington Beach, CA · Member since 2017 · 2 posts · 0 votes
9y
Hey guys, thanks for reaching out. Thanks for the great thoughts and recommendations. I'll definitely be taking these into consideration as I make my decision in the next few months.
First off congrats on your upcoming graduation from grad school! I think it depends on which niche your considering but as two amazing pod casters say, you should live where you want to live and invest where the numbers make sense.
Best of luck,
Don't fall for that sales come on. I can assure the only folks who would emphasis such an idea have something sell you elsewhere. Good luck with your search!
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
It depends on what you want to do with REI. Rental properties, flipping, tax liens, etc. will all be different in different markets. If you want rental properties, do you care about cash flow or appreciation? Different cities offer different things, or neither of those. Flipping can be done anywhere (I'm guessing...I don't flip).