I was in a similar situation when I wanted to start investing but didn't have a primary yet and lived in unaffordable Denver...I ended up investing out of state.

Especially since I am planning on buying a multifamily home as my first investment.

It doesn't perform well; your neighbor is a nightmare, they put more regulations, you get tired of running it etc.It may not be your first choice, but it will be a smarter investment overall, especially for newer STR investors. 

Investment Info:Condo fix & flip investment.

Investment Info:Single-family residence buy & hold investment.

He could then write off that basis if the investment went to zero 

A median single family home is $570,000A median townhome is $377,000A median condo is $312,000 (not a fan of these for investing purposes in our market, a whole other discussion)More quick stats:Homes went for asking price, on average this monthHomes sat about 20 days on marketSellers has 10 showings before going pendingThere are about 3,000 homes for sale, which is up 20% over this time last yearWhat I'm seeing is takes about 2-3 offers on average to get a property under contract (all depends on your aggression and strategy of course, location, etc)Overall, buyers have a lot more sway than the last few years.

I've since decided to more passively invest in real estate slowly via brrrr...

Investment Info:Single-family residence buy & hold investment.

We are G&R from Calfornia, passionate about real estate investing for the future.