New to BP - Interested Buying properties in Waco TX

[Danny Lee]

Hello BP community!

Learned about BP on a book I am reading. I am living in Southern California, wanting to buy my first investment property. I do not own a home yet but I really like the cash flow from a rental property. I am very excited to be part of this great community!

BP, one of the greatest real estate communities,  has great resources and experienced investors. I would like to build great relationships online and offline via BP.

Keeping my current career in banking, I have a goal to have a passive income for fianancial freedom and stable retirement.

I have a question to our experienced investors. I have been looking at Condos in Waco, Texas area for my first investment property. Let's assume the monthly cash flow (=rent -mortgage - expenses-hoa) is $300 - 400 (for me this is a satisfying cash flow). However, I am living in Sourthern California far away from Texas. What are the risks and challenges do you see?

Someone advised me to buy my first home to live in Southern California, and then buy an investment property. But right now, I do not have enough savings to buy a house in Southern California which priced at $500k, and I want to diversify my assests to real estate. I can use $20k for a down payment. That is why I am looking outside of California. I know it's a challenge to manage a propety from afar, but I really want to have that monthly cash flow.

If anyone can share any thoughts, it would be very appreciated.

Happy to join BP! Thanks!