Should I wholesale in the San Diego market as a newbie?

[Daniel Uckun]

Hi guys! 

I am a luxury watch dealer by trade, but I've been looking to get into real estate investing. After spending some time learning about the industry, I want to start taking action in wholesaling. However, I'm unsure which market I should focus on starting. 

Since I live in San Diego, I would like to focus on the market here. But I also know the market here is very competitive, and the medium home value is very high. The other market I'm interested in is Dayton, Ohio. The average home value seems to be below 300k, and the city has a population of over 100k to support the market. My plan is to work on on-market deals and focus on building long-term relationships with agents to bring me pocket listings. 

Would love to hear your guys' thoughts, and any directional support would be greatly appreciated!

[Daniel Uckun]

Quote from @Jimmy Lieu:

Quote from @Daniel Uckun:

Hi guys! 

I am a luxury watch dealer by trade, but I've been looking to get into real estate investing. After spending some time learning about the industry, I want to start taking action in wholesaling. However, I'm unsure which market I should focus on starting. 

Since I live in San Diego, I would like to focus on the market here. But I also know the market here is very competitive, and the medium home value is very high. The other market I'm interested in is Dayton, Ohio. The average home value seems to be below 300k, and the city has a population of over 100k to support the market. My plan is to work on on-market deals and focus on building long-term relationships with agents to bring me pocket listings. 

Would love to hear your guys' thoughts, and any directional support would be greatly appreciated!

Hi Daniel, I would recommend taking a look at out of state real estate investing - especially if you're priced out of California. I would suggest looking into a cheaper market like Columbus Ohio where you can still find positive cash flow, the 1% rule, and tons of appreciation potential. I personally am not a huge fan of Dayton Ohio because the population isn't growing and you don't get anywhere near the appreciation you would like in Columbus. Happy to connect and answer any questions you have!

Thanks for your input. On the flip side, do you think the stability/predictability of the Dayton market could be a positive thing for someone like me to gain some experience and then branch out to a more competitive market like Columbus? Or does it not really matter?