Hey @Christina V.! Welcome to the Forums and just to start off good luck on your investing journey!
There are a few different trains of thought on this topic, and I have worked with numerous first-time and seasoned out-of-state investors. There is nothing wrong with starting out of state, the main reason against it is that if you aren't an investor, and know how to analyze deals, what to look for in inspections, have never managed a property, etc... you are putting your faith in the hands of people who are states over, and you can't easily get to if something goes wrong. This is why it is usually recommended to get your feet wet and learn with something closer to you, as it can be less risky, and then you will know what to look for, and how things are meant to be run when you invest out state and employ others.
And the best thing about investing is where you are in the appreciation, and the desirability, which is what builds wealth in real estate vs the cash flow. Now of course there are other markets that will achieve that mark as well, and still be more achievable than San Diego, Denver, and Colorado for example. One way you could get into a property in San Diego is if you chose to move. You could rent out your current place (as long as it makes sense as an investment) and then move into a new owner-occupied home. You'll be able to use a low downpayment loan, and you are minimizing your risk as you know your previous home, and you've owned it for some years, so it should be safe as a rental. You are also able to manage and learn on it yourself, and build up your confidence, and worst case scenario you probably have a good amount of equity in it, and can sell if need be without any worries. Then you can look out of state when you have gotten your feet wet, but now you have two properties in San Diego that are appreciating, and depending on your situation, maybe the new purchase is a multi-unit or some other type of house hack.
Now if that isn't going to happen, and you do really want to go out of state, I would recommend finding the Realtor first, finding one that works with numerous out-of-state investors, and investing themselves in the market you are looking for. Then make sure they are leading with knowledge and strategizing with you on your goals, and not just working towards the commission. Once you find a Realtor that you Jive with, and feel comfortable with, they should have every vendor and person you could need to build out a solid team. Personally, that is how I found my out-of-state market (which I am exiting to move back to Colorado) and then didn't think about the market too much.
If you want to chat about the opportunities in Colorado, my team and I serve as a one-stop shop solution for investors, and stive to provide a high level of mentorship and guidance.
