Moving Forward into New Cities

[Oscar Montealegre]

I've been investing in Real Estate for 10 years now. 80% of my assets are in Los Angeles, the remaining 20% in Colombia-that's another story for another time.

In my last post I wrote that I am no longer investing in Los Angeles or any where else in California. Reason being is because the investment environment is too anti-business and anti-capital. And I when I write capital, I mean it in the literal sense. We are becoming a state of handouts and entitlements.

I'll stop ranting before I digress even more. As a result, I am looking at investing in other states. Please note that my list is in its preliminary stage and subject to change. Here is you go...

1. San Antonio-I expect a halo effect from Austin to hit this city soon; after my travels to San Antonio (July 2020) it seems it is already                happening.
2. Phoenix-It's hot literally and metaphorically speaking. But I don't see a bubble forming; in fact I see the opposite, a lot of upside.
3. Reno: Close to Sactown, relatively close to the Bay Area. No income tax is a plus for locals but out of state investors beware of investment      capital gains tax.
4. Dallas-Because its the opposite of Austin. Austin is cool, but its too hipster for my liking. I already live in LA, I don't need anymore "I'm too        cool for school in my life."
5. Bend, Oregon-Although Oregon is the first state to impose a statewide rent control mandate, I foresee the city growing even more now           than the norm. Especially with the increase of people being able to work remotely.

FYI, I am a long term investor. I don't flip and when I buy, I buy never to sell. I want cash flow and appreciation. If I need money, I refinance when it makes sense, take some cash out when I need to (especially now with such low interest rates), and deploy said cash into new investments. In short, I try not to complicate investing in Real Estate. Sounds cliche, but life is a marathon not a spring.

[Stone Saathoff]

That halo effect from Austin is definitely hitting San Antonio. Several investors I know and work with that have seen Austin progress over the years say they're seeing very similar shifts and gentrification on the historic east side, and even some on the west side.