Hey! New out-of-state investors from LA County!

[Elias Shanaa]

Hey everyone! Excited to join and learn from this community.

We are prospective real-estate investors looking to purchase our first rental property this year! We live in Los Angeles, CA and are looking heavily at investing in Texas or Arizona. The main purposes for investing are finding the best cash flowing deals and diversifying into something more stable than the stock market.

I have the cash reserves ready and good credit, and since Texas seems to be growing rapidly, it seems like a really safe bet, but I'm not sure what kind of cap rates I can reasonably expect. From our research so far, it seems like the San Antonio area is the best bet for finding a good deal in an area without too much risk. But I'm also open to investing pretty much anywhere else where we can get the best cap rates/cash flow. I'm wondering if investing in two cities is a good strategy or not for a first timer, and especially if anyone here has recommendations for a stable city with upside/cash flow potential, and maybe a city with lots of cash flow potential and less stability. Our strategy is to buy and hold long term.

Thank you in advance for any responses, it's much appreciated, and we are looking forward to connecting with you all!

[Leslie Pappas]

Hi @Elias Shanaa, my recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.

A very good source of local analysis is rereport.com