CA vs. FL Market: Buy & Hold

[Bernard Royal]

Hi All,

I want to first start out by saying thank you to the many of you that I have had the chance to connect with through Bigger Pockets, both over lunch/coffee and here online.

With that being said, over the past two years, my wife and I have virtually eliminated all of our "bad" debt and currently saving capital for our first real estate investment purchase.

We have truly been committing ourselves to better understanding the in's and out's through our own research and are getting much closer to finally taking action.

I am from San Diego, recently moved to Orange County, and I'm sure as many of you know the entry level capital required for investing in CA is quite high due to the cost of living (I could be completely mistaken as I only know the OC & SD market to an extent). We also have extensive family members out in Jacksonville and Ft. Laurderdale areas therefore after much research, thought about starting our venture out there.

At the same time I would much prefer to start in CA, and have an acquaintance that is heavily in the LA market. Long term game, we are looking to really target multifamily properties for long term wealth accumulation and cash flow, but I don't see how that could even be remotely possible in the CA market without substantial starting capital.

Some of my other thoughts creating our indecisiveness include:

-Despite the amount of research and networking we do, would out of state investing for a beginner not be advised?

-If we did start in the CA market. We thought condos may be a good entry point due to lower entry capital required and not needing to worry about some of the larger expenses like roof, etc due to HOA.

-Is FL even a good market for a buy and hold strategy? We ideally are thinking of multifamily investments of concrete construction toward the more inland area and the Daytona to Jacksonville stretch. I heard the insurance can also be a real pain due to the hurricanes etc.

Anyone with experience in either/both the FL & CA market that can weigh in on this? I guess what I am asking is.... what is your take on where to start in buy and hold investing in CA or FL and why?

We currently have about 50K saved up for our first purchase but want to be sure to do this right and not rush; therefore would love to get some of your thoughts.... thanks!