Why would anyone buy rentals in places like Santa Barbara?

[Storm S.]

I live here in Santa Barbara and I understand there are deals in every market. For example I could find a cash flowing deal with certain owner financing terms or master leasing but other than that you need your loans to be really paid off here to have a low enough payment to generate cash flow. So my question is why would anyone want to invest in places where the rent to market values ratios are so low?

[Matt Millard]

To gamble on appreciation like many are doing in Dallas here now. It’s not a wise play & that’s why many CA investors invest in cash flow markets in the Midwest.