New Investor in SoCal

[Jeremy Dube]

This is a multi question post, and ANY info will help...

I bought a single family home with VA Loan in Chandler AZ with every intention to stay in it. I got a tremendous opportunity in CA, so moved there again. I now have tenants (22-24yr old family members) and a 1 year lease. I am losing about $200 month (I pay pool maint and yard maint, as I know that they won't). I will leave this situation for another day....sigh....

I want to start investing, in AZ (Phx) or CA (San Diego/LA area). With the super high costs in CA, does anyone recommend not buying right now, as deals are hard to come by? I mean, 20% down in AZ is muuuuchhhh different than 20% in SoCal.    Does anyone find affordability on property in SoCal to be an issue? Should I focus in AZ? Anything helps.....

Oh, I have decent credit, and 0 debt.

[Levi K.]

@Jeremy Dube Cash Flow is the KING! 1) That being said, are you "OK" with negative cash flow for now? 2) If you are not "OK", maybe 1031 ex will make sense for you. I had 1b/1bath in San Diego that was cash flow $200 and did 1031ex last year and got 2 duplexes (new build) outside off state. 3) I stop buying in SD due to affordability issue for sure. 4) Try to go to local Meetups and maybe you can find some deals. 

Hope it helps.