New CA Investor Looking to Getting Started Out of State

[Dan D.]

Hello BP,

I created a BP account last year, but have only been lurking on the forums, reading articles and listening to podcasts since. I am now determined to get started investing in real estate in the first half of 2018 so I think an introduction  to the forums is  good place to start. I've enjoyed reading discussions on the forums and I look forward to participating in them and continuing to learn and meet other real estate investors through the forums. My initial goal is to purchase a cash flowing property by the end of July 2018. Eventually I would like to generate enough passive income to retire. I currently work as an engineer and plan on using income from my day job to finance downpayments for rental investments.

I am interested in out of state investing as the cost to enter my local market (SF Bay Area) is a lot higher than I can afford and don't typically provide cash flow. Turnkey investments are attractive to me as a newcomer since I don't have experience in renovation and don't have a network of potential teammates. I'm doing research to try to find what markets I want to focus on trying to get into (generally the midwest markets are attractive). I am also currently looking at a few turnkey companies to see what types of markets they invest in and what their business models are like. I know I still have a lot to learn, so I welcome any and all insight into out of state investing or turnkey property investing from CA.

[AJ Singh]

@Dan D.

As a fellow investor in southern ca, my advise is that out of state route is good if you can scale to 10 or 15 properties rapidly. if you are only interested in two to three rentals, save these downpayments and invest in area two to three hours away from bay area like bakersfield, fresno, sacramento, patterson city etc.

Its not worth your time and hassle with pm companies for two to three rentals in out of state scenario.

i can still find decent cap rates within area two hours away from los angeles in multi family 

my two cents...