Starting out advice (job + real estate)

[Josh Raikin]

In February I'm starting a job and relocating to the Bay Area (NorCal) from LA (where I am now). From May to September I have training in Dallas, TX, and then will be returning to the Bay indefinitely. 

My question is, when looking at my first property to buy, should I:

• Look strictly into Bay Area homes to house-hack (from Feb or Sept?)?
• Look into Dallas homes?
• Look into Bay Area homes (only) for my return there after Dallas?
• Or, none of those options weigh more than the other, as long as I start investing in property?

Thanks everyone for your help! Super new to this and just want to not screw myself over too much on a first purchase. I hear CA sucks to invest in overall, so would anyone recommend avoiding CA for a first investment?

[Will Barnard]

OOS = Out Of State

Jon gave some great advice above but before you can make that call, you really need to sit down and decide what your goals are (both short and long term) and what your skills and likes are. Then choose the best strategy that fits your criteria and make your move.

Understanding the market (in both Nor Cal and Dallas - or anywhere for that matter) will be both data driven and boots/eyes on the ground driven. You will need to know the average DOM (days on market) for each area, the crime rates, population growth, income growth, net migration data, jobs growth, and any upcoming major developments to the area (which can also include a large employer coming or going, new freeway, new shopping centers, etc.). Knowing inventory levels (how many homes for sale now, how many pending, and how many sold today, last month, last quarter, last year, 3 years ago. This data will give you a great idea of where that specific market is and where it is going. For buy and hold, you really want to have good population and income/job growth with low crime for the best appreciation. Cash flow is only one part of the financial equation in buy and hold. Forced appreciation, market appreciation, debt service reduction, tax deductions are all part of that total financial equation to the asset. The boots and eyes part of this is driving neighborhoods in day AND night to get a feel for which streets/neighborhoods are good or bad. In my area of So Cal, it is very common to have 6 figure differences between price points of the exact same house just because it is on one side or another of a main street or highway. Looking at a map and seeing the comp is within 1/2 mile is only part of it and not having the inside knowledge of these factors could get you in to some trouble. Know your market!!!!

You can get a lot of this data from a RE agent, title company and online resources.