I love Cali but.....

Member since 2024 · 37 posts · 52 votes

Hi all, I am not new to investing but I am new to RE investing. The majority of my money is in Stocks and I'm looking to move some of my funds over to RE. I'm not looking to get rich or replace a W2, but I am looking to build a portfolio of properties that will eventually add to my income streams in retirement. The challenge for me is that I live in San Diego CA and the market is expensive and I compete with owner-occupiers who will pay top dollar. Buying a run-down property and fixing it is difficult because building costs here have become ridiculous. I am slowly coming to the realization that maybe Cali isn’t the best place to invest ( I love the joint). I have seen places like Cleveland and Columbus get mentioned on the forums as a good place to invest but I’m open to other ideas. I want to start slow and build from there. Any help would be much appreciated.

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

there are semi rural areas of CA that prices points are manageable.. and I like Vegas a lot.

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Kenneth Donaghy
Real Estate Broker · San Diego, CA · Member since 2016 · 355 posts · 195 votes
2y
@Mark Cotter, I think you are at an advantage by living and knowing SD. I'm bias because I live in, work here as a real estate broker, invest here, and help others invest here. Many of the seasoned local investors, and high network individuals i know have started their journey in real estate investing, with buying owner occupied properties here locally. Especially since you start slow and build mindset, I wouldn't let your concerns about the local market discourage you from taking local action. Keep in mind, appreciation in real estate creates wealth.
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2y
@Mark Cotter
i think investing OOS is only a good option if you're going to spend actual time and effort in your chosen market. finding properties on Zillow that you never see in person, putting 25% down and hoping people you've never met handle everything for you... not a great plan.
and yes, you will need a long time horizon for a portfolio to actually generate cash flow buying at todays prices and rates - 10+ years. see this thoughtful thread.
https://www.biggerpockets.com/forums/48/topics/1159104-overl...
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Tony Stephan
Investor · Metro-Detroit, MI · Member since 2021 · 63 posts · 54 votes
2y
Quote from @Nader Shariff:

I'll be another guy in here to throw my vote in for Detroit Michigan. With the right team in place, it makes for a promising market to get into at the moment.

Agreed! My wife and I rent in Newport Beach CA during the winter...But we OWN 131 rentals here in Metro-Detroit! Love Michigan for solid appreciation, value add deals, and decent pricing compared to the rest of the nation.
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Nader Shariff
Detroit, MI · Member since 2020 · 150 posts · 68 votes
2y
Quote from @Tony Stephan:

Quote from @Nader Shariff:

I'll be another guy in here to throw my vote in for Detroit Michigan. With the right team in place, it makes for a promising market to get into at the moment.

Agreed! My wife and I rent in Newport Beach CA during the winter...But we OWN 131 rentals here in Metro-Detroit! Love Michigan for solid appreciation, value add deals, and decent pricing compared to the rest of the nation.

Yep, but I think Detroit proper is where people need to be focusing on at the moment. There is for sure a lot of great things happening in Detroit.
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Nate MeekerBusiness Member
Real Estate CPA | California · Member since 2020 · 543 posts · 251 votes
2y
@Mark Cotter Hi neighbor! As someone who grew up in SD, I can totally understand where you are coming from. However, back in 2020, I purchased my first rental property out in Pensacola, FL. While it was strange to purchase a home without ever seeing it, you have to just view real estate investing almost the same as the stocks you have been investing in. Just because you can't tangibly see the house or walk through it, does not mean that it is not a good investment!
I highly encourage you to look into other areas outside of California to get a better ROI. Good luck!
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Harrison Chow
Real Estate Agent · Columbus, OH · Member since 2019 · 292 posts · 364 votes
2y
Quote from @Mark Cotter:

Hi all, I am not new to investing but I am new to RE investing. The majority of my money is in Stocks and I'm looking to move some of my funds over to RE. I'm not looking to get rich or replace a W2, but I am looking to build a portfolio of properties that will eventually add to my income streams in retirement. The challenge for me is that I live in San Diego CA and the market is expensive and I compete with owner-occupiers who will pay top dollar. Buying a run-down property and fixing it is difficult because building costs here have become ridiculous. I am slowly coming to the realization that maybe Cali isn’t the best place to invest ( I love the joint). I have seen places like Cleveland and Columbus get mentioned on the forums as a good place to invest but I’m open to other ideas. I want to start slow and build from there. Any help would be much appreciated.
Hey Mark! Thanks for reaching out! Investing in areas like Cleveland and Columbus can offer great opportunities, especially compared to the competitive market in California. As an investor based in Columbus, I can attest to the favorable conditions here. Let's connect and discuss how you can start building your real estate portfolio!

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