What state to purchase duplex-4 plex??

[Sam Conway]

Hi Guys,

This is my first post. I have been listening to a ton of the bigger pockets podcast over the last 8 months or so as wel as browsing the forums. I am currently house hacking and live in California. 

I am looking to purchase my first full rental. I’m after passive income to eventually replace my full time job. California is too expensive right now. I am looking to purchase out of state and in the 100-150k price range. Looking for duplex to 4 plex. Ideally a 4 plex as I like that it spreads my vacancy risk a little better and I feel the cash flow is better as well. 

What state and city’s do you guys recommend to start looking at? 

Thanks in advance!!

[Jaspreet Baveja]

Hey @Sam Conway, Welcome to BP! I believe this all depends on the level of participation you want to have, what Class of an asset you want to retain (and the headaches or lack thereof that comes with it), along with if you have any friends / family who happen to invest and you can leverage a network they've built and many more such things! Not knowing what your W-2 salary is, not sure how long it will take at the $150k quadplex / deal basis to replace it, but, make sure that regardless of WHERE you choose, account for ALL your expenses, immediate and long-term, before you arrive at your "NET Cashflow"! Too many people fudge the #s for the deal to make sense, as they get antsy and want to act, but, I think that sticking to your conservative approach, accounting for everything, and then moving forward will keep you safer longer! P.S. - Indiana, Arkansas and a few other states have the potential for those price-points and cashflow. You should also consider the Private Lending space as an alternative to this approach, which is a LOT more passive, and can generate exceptional returns with a secured asset as collateral. Best of luck sir!