Investing outside of California

[Trent Jackson]

With the new rental laws in California, I have been looking to flip my current two rentals a (4/2 and 3/2 ) to another more landlord friendly state. I recently purchased “The book on Rental Property Investing.” By BT. I’m looking for a multi family, what states would my fellow Bigger Pockets friend’s recommend? Currently I am looking at the Rio Grande Valley area (Texas), and a little bit in Idaho.

This is my first bigger pockets post, any advice would be appreciated. Have a great weekend.

Houses in California are paid for and are renting out for $1300, and $1100 a month.

Located in the Fresno area.

[Account Closed]

@Alvin Uy but I thought appreciation is gambling, right? If it doesn’t cash flow on Day 1 it’s a horrible investment. 

Making $100/month cash flow in the Midwest has got to be better than 6 figure appreciation right here at home right?

Kidding aside, majority of posters here on BP think appreciation is “icing on the cake”. My bud @Account Closed would say it IS the cake.

What people don’t talk about much is rent growth. Even if you’re a tad negative/break-even on Day 1, the rent growth in CA and other high value markets usually end up making all of our investments cash positive rather quickly. Some of my units were renting at $1,000/month 7 years ago. Same units today are $2,200/month. I know @Russell Brazil has seen similar things happen in his DC market. 

A $500/month rental in Cleveland was $500/month 10 years ago and might be $700/month 10 years from now. 

Solid rent growth + appreciation = road to riches.