Selling Cashflowing Homes in Midwest for No-Cashflow in San Diego

[Twana Rasoul]

So I'm in the process of trying to sell my Single Family Homes in the Midwest  (Springfield IL) in order to purchase another property here in San Diego (occupied 2-4) unit that will be around $0 cashflow at best, assuming all units rented, including the one I'd be occupying.

seems like I'm doing the exact opposite of what investors on here are doing.   Feels like everyone else is avoiding prime locations (Los Angeles, San Jose, Seattle, New York, etc.) with no cashflow and targeting cashflow locations in the Midwest, South, etc.

 is anyone else doing this by any chance? or am I just crazy and on this island alone? 

[Jack Medford]

I don't think you're crazy, but it all depends on your long term goals. San Diego is a great place to buy because your properties will appreciate overtime. If you are in a position where you do not need cash flow today, then I think this play is the way to go. 10-15 years from now your properties will be cash flowing, and their value with be much higher.

I'm in the opposite situation. I need the cash flow today, so I'm not focused on appreciation. I actually moved away from California for this reason. I cannot wait 10-15 years to realize the appreciation. I need cash flow today, so I'm buying in markets that will cash flow now and have minimal change in value of the overall property value. 

I'll be looking to move back into prime assets during the next down turn, since those are the assets that will fall in value the most.