Southern California investors looking for out of state property

[Kelsey Rasmussen]

Hi BP community,

My husband and I are just getting our feet wet as investors and could use some advice. We live in southern California (inland empire area) and feel the home prices are too high here for us to buy rental property. If you are a socal investor who buys out of state, where do you like to buy and why? What have you found are the pros and cons of investing long distance in rental properties? We are excited to hear your pearls of wisdom! Thanks! 

[Christine Kankowski]

IT is definitely doable, but takes quite a bit of research.  If you are first time investors, you do have to get comfortable with the idea that you will have to trust someone else with a large asset: managing, renting etc. 

I recommend doing a lot of reserach online first. Is you priority cash flow long term? or appreciation?

For cash flow long term, look for areas with good population growth, low unemployment, low cost of entry (midwest areas are good) and good rents. bigger pockets has a bunch of good information for you, (You can get in for $75-100K)

Im in Temecula, not far from you.  The nice thing about this area is that you get strong rents, as well as appreciation. You dont make as much monthly for cash flow, but if you are holding for the long term, it has historically gone up. Situated within driving distance of Orance County and San Diego County where prices are 50% more, and having excellent schools, we have a super strong rental market. With a loan, you may not need to put too much down

Best of luck. Christine