looking to invest out of state, I keep going back and forth with a bunch of states

[Alex Clark]

How do you guys choose your target market? I'm looking at Oklahoma, Nebraska, Ohio and Detroit. I'm 21 with around $100,000 to invest. Im willing to find a risky play with high cashflow. What would you guys recommend?

[Arn Cenedella]

@Alex Clark

Congrats for accumulating $100K to invest at the age of 21. That’s typically way ahead of the curve. 

I would caution against the risky play with high cash flow. 

It seems to me you want to put that capital to work long term and start to learn the real estate investing business.  Gain experience and knowledge while not losing capital. 

$100K will be a down payment for a $400,000 property give or take. And if you can generate $10,000’a year cash flow on a $100,000 investment, you will be doing really well. 

Instead of trying to find the BEST market (assuming one exists and I don’t think it does), I would invest in a market easily accessible to you where you can keep an eye on things.  

One final thought, as I assume you are a first time investor, looking to invest out of area in “a risky high cash flow deal” sets the stage for you to be ripped off by a fast talker. The con artists will be on the look out for newbie investors like you. 

Someone will present you a deal that looks great on paper but will fail miserably.  Don’t be seduced by wonderful looking returns and sweet sounding promises, it is likely to be fool’s gold. 

Put that capital to work and double your money every 5 to 7 years in solid strong investments. 

The finish line of the race for you isn’t 2 years from now it’s 15 to 20 years from now. 

Line drive base hots not strikeouts swinging for the grand slam. 

Just advice from an old guy who has been investing 45 years. The fable of the tortoise and hare might be informative. 

Good luck on your investment. 

Arn