Ca overpriced... why NOT buy several houses remotely?

[Carson Wilcox]

I am working on a long term buy and hold plan.. SFH's here in Nor cal are SO overpriced. I am 40, 3 kids, full time job... I envision doing Property management at least in the first decade, but do a lot of work myself on any I can buy locally. If I am going to pay a manager anyway... WHY NOT buy a house in St Louis for $50k that rents for $600 vs a house in sacramento that costs $350k and rents for 1100...? Why wouldnt I buy rentals elsewhere that cost 1/5th the amount here for barely less rent? What is the drawback besides the finding and screening?

[Ned Carey]

Please don't listen to the simplistic answers of "you will make more with appreciation" That is a possibility, perhaps even a strong possibility but it is not guaranteed. The market goes through cycles, including CA.  Markets that tend to have higher appreciation also tend to have larger swings when the market changes downwards. 

I am not saying whether CA is a good bet one way or the other. That is not my market or expertise. However to say it has gone up the last 5 years it will go up forever is what people said in 2006-2007. 

On the other hand when you invest out of state you increase both your risk and your cost. You are going to do the best in the market you know the best. It is harder to learn a distant market. 

You will get good feedback and knowledge here on BP but anyone who acts like the answer is clear and obvious is doing you a disservice.