New to Real Estate · San Bernardino California · Member since 2022 · 7 posts · 1 vote
Hello BP Fam, Since I live in California and the markets are high here do you think it would be best to try and buy out of state and if so what do you think would be a good type of investment for a 1st time buyer? As always thank you in advance for any advice. :)
It really depends on the county and city. I live in Merced, CA and it's becoming a great market to invest. UC Merced is attracting all kinds of investors to the market, specifically because Merced is an upcoming city.
I'm a new investor living in California as well and from what I've gathered it can ABSOLUTELY be better out of state and even for a first timer, depending on your state. In David Greene's book on Long-Distance Real Estate Investing and his other one on the BRRR Method, he states though its comfortable its not always in your best interest to invest in your own back yard, and he lays out a method and process for making out of state investing very possible and profitable.
In the research I've done I've been comparing states and cities based on a number of factors including price-to-rent ratio, population growth, job growth, landlord vs renter friendly states and overall renter population percentage. California for example is in the top 20 most renter friendly states in the US. Do you want to have a hard time evicting your tenants or taking them to court? Buy in California then, they always side on the renter.
Developing your own criteria for analyzing markets and being deliberate in your investing will help you eliminate future headaches.