All Forum Posts by: Michael T.

Mark, welcome to BP!  As you mentioned you are located in the SoCal area and while there are great opportunities here for appreciation there are definitely not as many for cash flow.

It's great to look at locations you have connections, however, if you are able and willing to put in the work it is definitely worth if to find a real estate agent and property manager in a market that has strong cash flow.

I'm not too familiar with the Tampa or Orlando market from a cash flow perspective but there are definitely strong cash flow opportunities in the mid-west.  If you're looking for cash flow the mid-west is probably your best bet and if you're looking for appreciation than the west coast or east coast will be your best options.

The most important things to consider are your ultimate goals whether that is cash flow or appreciation?  

If you need any assistance especially since we're both here in the Los Angeles are I'm more than happy to help!

Adrian,

That is a great question and one that many of us California investors have asked for many years.  You are not missing anything but it's important to understand that while there are good investments here in California there are not as many opportunities to achieve the same cash flow returns that out of state (OOS) properties provide.

Yes, there are definitely properties throughout California that meet or exceed the 1% rule and they can definitely cash flow well, however, based on taxes, expenses and the real estate laws here in California it does become more difficult to achieve positive cash flow.

I currently invest in the mid-west for cash flow purposes and typically achieve 10% or more in Return (IRR). By investing OOS it gives me more options to achieve 10% returns and I don't necessarily have to wait for the appreciation compared to many investments here in California.

My investments here in California are primarily for appreciation purposes and to "house hack" offset my mortgage here in the Los Angeles area.

If you can find the properties that achieve the 1% rule, provide positive cash flow and help you achieve your goals then pursue the opportunities.  If not than identify either an investor here through biggerpockets or a real estate agent OOS that can help you find those positive opportunities OOS.