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?