Need Help thinking this through investing in San Diego, Ca

[Phyo Ko]

Hello Newbie Investor here

I am in the Navy currently stationed in San Diego CA I am just starting my real estate investor journey. I bought a Single Family Home last year and I am trying to turn it into a rental so I can buy another property a 2 to 3 unit home to house hack. I am going to use a conventional loan with 35k for down payment because my va loan is tied up with my current home. My dilemma is should I invest in Ca with it high housing prices and tax or invest in another state were I can get more for my money. The long distance investor does make me nervous even with its pros. I know that if I do the work and finding a good property manager and realtor I should be fine. But as a newbie investor should I take my learning lumps investing locally were I can see and touch my investments or go out of state? Regardless I know I am in it to win it.      

[David Pere]

@Phyo Ko keep in mind that all three people who said you should invest locally are agents that have something to gain from you investing locally. Always look for motive. 

Personally, I bought my first duplex locally, and then bought 17+ more units in that state, and haven't lived there since buying the first duplex. 

Can long-distance real estate be successful? Absolutely!

Are there benefits to living in the market that you invest in? Absolutely!

The problem becomes when you choose to invest where you live, because you live there. You should choose to live where you want to invest, because you invest there, if that makes sense. 

If your goal is to create immediate cash flow, and not pay SD prices, then go with that, and roll with long-distance REI. If, on the other hand, San Diego meets your investment criteria and strategy, then by all means invest here.

Don't tailor your strategy to be convenient, or less scary. Tailor your lifestyle to meet your investment criteria. 

Hope these thoughts help, and happy to help in any way that I can.