Out of State Investing - need help finding a good location!

[Karen DiNapoli]

I live in Los Angeles and completely priced of this market. I'm having a hard time finding a good out of state location. My friend lives in AZ and suggested Downtown Phoenix. She said there are several districts there that are being revamped. Any thoughts on that area?

[Alex Chau]

@Zach Quick I am from California as well. While I do agree with you on investing where you live. Unless you have a good amount of capital to start with, it is really hard to start here. On top of that since the prices are so high right now, if there is a downturn you will have to cover the negative cash flow when rent starts to trend down (which is what is happening in san francisco right now) as well as lose equity. Yes you will get it all back in 10-15 years but in terms of return, would it not be better to invest out of state where you cash flow and and bring that return back to california when the market has bottomed out. Just a thought, as this is the route I am planning taking. Building a cashflow portfolio out of state, and bringing it back to home once things cool down a little more.