Out of State versus California (Home)
Hi all,
I have been in a hard spot for a while now trying to determine if investing out of state in cash flowing rentals is too risky versus saving up for a home nearby me in pricey California. Some background info: I am 22 years old, bachelors in math and 50k/year job teaching. I plan to have 20k saved in 2 years and want to be able to hit the ground running by that time. My initial thoughts on out of state were that it was a great opportunity to be able to get started in real estate but I keep getting many mixed messages on how risky it is versus managing it here in Cali myself. My thoughts are what am I going to do anyway if the property is right next door to me? I don't see how management will be impacted just by distance. Also if I buy in other parts of the country I can get started earlier, fail faster and then know what I am doing by the time I would have saved up money just for once house in Cali! I already have a residence with my wife so that is a great position to start in as I don't have to pay as much for my own living expenses.
Can the BP community weigh in on this and give some advice on the pros and cons so I can weigh this out myself?
Responses will be appreciated, especially if they are from Cali(real estate joke)