Should I invest in my own state?
I live in Arvada, Colorado, a suburb of Denver. The housing market here is very expensive compared to other places in the United States, where even a small townhome (2 beds, turnkey, no repairs, good area) runs around 100k. Ouch. And the kind of property I want to buy, multifamily, easily runs 250k to 400k (unless you're rehabbing, then slightly less).
I'm only 22, and I don't have any other financial resources besides myself and my hourly wages. No money in the family, no asking mommy or daddy for a down payment. I'm afraid that the amount of money I can save within a short amount of time won't be worth investing in my own area because of the over inflated prices. The same $20,000 or 3.5% investment I could make on a fourplex in my own state, FHA and therefore owner occupied, could also be 20% down on a fourplex in another area with no need to owner occupy.
That being said, should I invest in a different state with a weaker housing market?
I would actually prefer to owner occupy in a fourplex and do my own property management for the experience and extra cash flow, but I just don't think I can purchase in my own area...
I've read the blogs and watched the videos of some other successful investors, namely @Lisa Phillips and @Joe Fairless who invest in other states with a lot of success. However, investing outside my own neighborhood feels daunting, since I don't have personal contacts anywhere but Denver.
How do I determine what is right for me? Thoughts?