Newbie Investor from California want to Invest Out of State

[Krysti Sam]

Hi Everyone @BiggerBockets!

I'm a newbie investor from California. I have been listening to BiggerPockets podcast and love what you guys are saying and accomplishing. I have 2 SFH Rentals in California. The California market is saturated now and I'm looking to invest out of state. Who can tell me where there's still good positive cash flow, passive income, and equity in the states they are working in? I'm hearing Florida, Atlanta, Tennessee, and even Texas, but have no connections there. I would like to join forces with you or help guide the way. I am very motivated. I'm interested in Multiplexes, SFH, and maybe commercial deals too.

Thanks Everyone!

[Joel Owens]

Hi Krysti,

Just be careful with your money regardless of the market. Talk is cheap and many have a dog in the hunt to buy where they do business.

I would first back track and look at money to spend. Then I would look at how active versus passive you want to be. Next I would define how much risk you want to take on for an annual pre-tax return.

Some investors like residential and some like commercial. There is competition EVERWHERE to invest. Anyone who tells you otherwise is blowing smoke and red flags should jump up everywhere. In Atlanta for residential there is a lot of oversaturation. I have local investors that are wanting to get into commercial assets for yield because flipping is getting harder and harder and long term holds that make sense are becoming more scarce for sales prices on houses. The people talk to are buying in nice areas and don't want cheap stuff in the hood with tons of headaches and issues.

At least in commercial where investments are highly numbers driven you don't usually have the stupid money chasing deals. You still have to compete but you don't have someone with 25k lying around with more money than common sense grossly overpaying for things to ( get in on the action ) because the buzz is the market is going ( up, up, up ). Forget the hype and do your own investigating and stay away from drinking the spiked koolade...... : )

Plenty of cheap houses to buy just be sure that you don't have to get tons of different managers with the portfolio as that is a logistic nightmare of epic proportions. Just talk to different people to learn more and find your path you want to take.

All the best.