Where to invest now in multifamily properties -Northern Calif

[Lois S.]

Looking to sell a self-managed duplex property in the SF East Bay area.

Would like to do a 1031 exchange into another area within a couple of hours drive, in an area without local rent control laws.   We're not sure how to get started looking for multi-family property & management, and what areas might be worthwhile.

Current property should sell for just under $1M.

Any advice?  Thank you.

[Brian Sparr]

Hi @Lois S. - in my opinion, there's no right or wrong answer ... if knowing you can jump in a car and get there in two hours allows you to sleep better at night, that shouldn't be ignored.  

My reason for asking, though, was to simply make sure you go through the thought exercise.  For example, consider the Seattle market.  $150 will get you a round trip ticket from Oakland - a 2 hour flight away.  Do that 4 times a year and you're looking at $600 in plane tickets - add in a rental car - let's just make our numbers easy and say you're looking at an additional $1200 total for the year - $100/mo.  If you could find a property in the Seattle metro that kicks off more than $100/mo over what you can find within a 2 hr drive of where you live, is it not worth considering?

Again, there's no right or wrong answer ... it's just something to think through.

Wish you all the best with your search!