1.2 Mil cash on hand, where and what to buy?

[Ouman You]

Hi guy

I'm asking for a family member who has a house that is bringing in about 3% net, the house is paid for, and the person is looking to do a 1031 exchange and buy properties in states like Ohio or Tennessee.

Can someone shed some light on what kind of numbers to expect and what kind of properties are best to invest in.

Also, I know that many investors prefer those markets, but none of them have a good appreciation like California does.

Just give you an idea, So this property was bought 20 years ago at 400k now is worth around 1.2 mil.  Isn't more beneficial in CA even with low rents but one can compensate in terms of appreciation?

Thank you.

[Jonathan Styer]

@Darius Ogloza There should be no issue doing a 1031 and purchasing multiple properties after selling one, I have clients do that all the time. As long as you identify the properties within 45 days you're fine. Any 1031 agent should be able to assist with that side of things. 

You're right, when investing in new markets its very important to have folks you trust in place.