All Forum Posts by: Shri Kanase

 Most people answered it the same way I would... 

Go find a area, the areas could be an area you like to travel, or have family in that area. Those seem to be where people tend to go, because they are more familiar with the areas in a state they do not live and that's how they get to know the area. 

The other option is to go down the top ten list of areas to invest off Biggerpocket's list and pick a few of those to do the research on and plant on one that makes the most sense to you (you like going there, high returns, easy to commute to). 

There needs to be reason you are motived to go there and research there for the area for you as the investor. The second step, as you find that area start checking Zillow and Biggerpockets for agents that are in those areas that are doing real decent volume that you can have a conversation with and potentially use (they have access to contractors, PMs and handyman services along with much more to help you be successful). 

This is why I often avoid answering these types of questions.

Find a market. There are tons out there that can still make sense in today's expensive market. When you narrow in on a City, look for a really good property manager. If there's not on to be found, don't invest in that city. A good manager will make or break this for you.

Once you have a city and a property manager, focus in on a neighborhood with good schools and low crime. Buy a house, give it to the property manager, and get it rented. Rinse and repeat. Know that this is a long game (10+ years) and don't fret over the small stuff.

if you haven't already, read a good book on the value of real estate investing. Brandon Turners is good, or I recommend "The Unofficial Guide to Real Estate Investing" by Spencer Strauss. Also read "Long-Distance Real Estate Investing" by David Greene and "Every Landlord's Legal Guide" by NOLO. Those three books will give you 80% of what you need to know and you can learn the rest through action.

 A bit challenging to advise on the “ideal” out of state location as everyone’s definition of ideal can be very different. As examples: some prefer to invest in areas they may have grown up in and are familiar with, some may choose to invest in areas where they have friends/family that can help keep an eye on things, some might invest in areas they can easily hop on a flight to get to, etc.

Might be a good idea to start by mapping out your goals. Prioritizing cash flow, equity, STR, buy/hold, self managing, etc. This usually helps to start narrowing down what other locations you might consider. At the same time, as you focus on specific areas, it makes the next step a bit easier when it comes to researching a potential team.

With location(s) identified, it is a good idea to start understanding the area/neighborhoods better. Some might even fly out and spend some time exploring. Another helpful piece is starting to build that team. If you connect with a good local real estate agent, that usually helps as a good start. 

@Shri Kanase the IE will likely offer better immediate returns than OC but it all still depends on what you're looking for.  If what you are looking for is max cash flow per month then CA probably isn't the place for your investments.  If you're looking for long term total return then it might be, but either way you need to set expectations and make sure they are realistic for the market you're looking at.

California seems to have much harsher restrictions due to Covid than a lot of other states, mine included. Tough to say if it's the right time or not. That being said, you have put yourself in a great position. Having that amount of money saved up at your age is no joke. Start some serious conversations with investor friendly realtors and wholesalers in your area to learn the market better. Provide some value to them, show you're serious about getting into it, and they will help you out.

If you ever consider doing long distance investing, San Antonio, TX can be great for cash flow if you find the right types of deals.

@Shri Kanase Do you plan on living in the property or strictly rent it out?

@Shri Kanase well it depends on where you are as to what is 20-50 miles away from you.  In general CA isn't great for cash flow immediately but is good because rents tend to rise over time, insurance costs are relatively low, and property taxes remain low even as the property and rent increase in value.