Why do you invest out-of-state? (folks in metropolitan areas)

[Artur A.]

I live in the Bay Area. I see many deals are positive cash flow (I guess the same in the other metropolitan areas such as NY, Miami, LA). I understand that income/ratio is better in areas like Texas, Midwest, etc. But also risks are higher & much more difficult to manage (property management issues, tenant issues, you can't see the property - you have to fly, etc.).

Why do so many people in California invest out-of-state? 

- diversification?

- in a market crash - prices will go down more in the metro areas than in the periphery?

Thanks

[Aaron W.]

@Artur A. Many decide to invest out of state because of affordability of properties and more potential properties available. There are other factors that go into a decision to go outside your market as well, such as market cycle, political climate, taxes, etc.

I used to own in the Bay Area and sold off my property due to the high taxes and opportunity for better returns elsewhere.

Best of luck!