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Updated over 2 years ago on . Most recent reply
Bay Area vs. Out of State
Hi guys! I need your opinion. I'm an RN here at Bay Area and since property here is out of reach I've been planning to buy a rental property in Midwest particularly in Cleveland, Ohio. I got recently pre-approved for 300k property and I started looking around. But then, I just find out that there's a state housing program like CALHFA that would help to cover the down payment for first time home buyer. Do you think I should pursue buying a rental property out of state or buy a single family property here at Bay Area through CALHFA and later on apply for HELOC to finance my rental property out of state? Thanks
Most Popular Reply
I actually just moved out of the Bay Area to Columbus, Ohio a month and a half ago. I am pursuing my RE investing journey out here and there is so much potential! I love it here and the midwest/Ohio in general is a place that is seeing steady population/job growth as well as business relocating here. I am supposed to close on my first duplex at the end of this month! I worked with a lender who does 2-4 unit lending with 0% down. AND I'll be getting 3% seller credits at closing, more than enough to cover closing costs and minor repairs. Good luck on your journey! Always use free money if you can! Best way to invest in RE is with OPM (other people's money).
Also my personal opinion at the moment is that listing prices will start to drop a little, but demand is still high. Id buy sooner rather than later. It could be a good move to get into a place in CA, then later use a HELOC and purchase out of state. But I would recommend getting into a duplex in CA if you can. You'll be able to make income from the other side and lower your cost of living as well. This will also help you learn the ins and outs of owning/managing rentals as you will be right there going through it. Then whenever you decide to move out of the duplex, you'll have two units rented and buying that out of state rental would then make it 3! It would be a faster way to scale if that's in your future plans.