How Do You Invest in High-Price Areas?

[Josh R.]

How do you find deals in high-priced areas where the metrics (e.g. 1-2.5% rule) don't exist?

For example, in Washington, DC you can get a row homes for $500k but they surely won't rent for $5k/month.

[Douglas Larson]

@Josh R.

First, If you really want to find answers on BiggerPockets you need to do your part and SEARCH! It's that little box in the upper right corner. There is so much info on here that if you put forth just a little effort you will be flooded with great articles and insightful responses from some very experienced investors.

That said, many investors like myself have been successful in high-priced areas. I personally like resort areas like San Diego, Maui, Hawaii and Park City, UT. Entry-level homes start at $400k and go up from there very quickly. You may have to partner with someone and pool your resources. You may have to invest in more humble neighborhoods. You may just have to get more creative. My first 2 deals on Maui were "functional multi-family" properties where I lived in the "ohana" units (mother-in-law apartment) and rented out the main house. If you really want to do this real estate thing then spend some time researching your specific interest areas on these forums and then put together an action plan! Once you have a plan, throw it out there and ask for critiques. There's a lot of great people on here that are willing to help those that help themselves.

Have Fun and Make Your Own Luck!