Where to Invest: SF Bay Area or Out of State

[Teddy Smith]

Hi All,

I'm a newbie to the real estate game, trying to put together my first deal.

I'm using an FHA loan, and I am looking to buy a multi-unit in Oakland, CA. I've got a deal I'm looking at right now that would cash flow once I move out after the first year owner occupancy requirement goes away (even with about $800 in mortgage insurance).

However, I just talked with an eviction attorney, and he basically advised me to stay the hell away from Oakland and surrounding cities as they are so tenant friendly and therefore made it seem like it's a nightmare to be a landlord in Oakland.

This conversation has left me with some hesitation about investing in Oakland, and it has me thinking about investing in out-of-state turnkey rentals, in either Florida or Texas.

Does anyone have a helpful opinion or advice on this?

[Brian Garlington]

@Teddy Smith 

As a Realtor who also owns rentals in Oakland as well as out of state I get this question all the time. Ask your attorney if he/she owns rentals. If they don't.......

Yes Oakland is tenant friendly and the eviction attorney you are speaking with has some merit. However, there are certainly things you can do when screening potential tenants that can mitigate a lot, bot not all of the foolishness some of them try to pull on you. 

Without stepping on any toes, what sort of things has your current realtor shared with you that can help you out with this?

@Teddy Smithundefined