I need help figuring when to buy my first investment property

[Enos Vazquez]

Single. Make $100k as a w2. Just bought my first property which I am going to house-hack 2 rooms at $600 each. I live in CA. Should I continue with my idea of buying my first investment home outside of CA? or should I wait let things settle until next year?

[Ko Kashiwagi]

Hi Enos,

Congratulations on your first purchase! House-hack is the best way to get your feet wet. If you have the cash to invest on the second property, it would be a good idea to do so out of state since I presume you cannot house-hack again until next year. If you are able to do another house-hack while buying this second property, it's probably the best case scenario.

[Robin Simon]

Welcome to BP

Lots of factors - but a lot of people in your situation have had success doing the house hack in CA and then investing in pure rental properties in the Midwest - everybody's different, but that path seems to be a strong one for investors in CA that want to invest in RE but don't want to leave!

[Samuel Diouf]

There are some great opportunities in the Ohio markets. Many investors from Cali, are choosing to buy residential locally but invest in the midwest because of the yearly returns making more sense in these lower priced markets. Ohio markets show up 3 times in Zillow’s 2024 hottest markets, with Columbus and Cincinnati taking the top 2 and 3 spots. I moved from Florida to start investing in Columbus due to the same reason.

[Jacopo Iasiello]

Hi Enos, It sounds like you're off to a great start with your house-hacking strategy in California! Whether or not you should proceed with buying your first investment property outside of California depends on various factors and your individual circumstances

[Mike Paolucci]

Quote from @Enos Vazquez:

Single. Make $100k as a w2. Just bought my first property which I am going to house-hack 2 rooms at $600 each. I live in CA. Should I continue with my idea of buying my first investment home outside of CA? or should I wait let things settle until next year?

Hey @Enos Vazquez
I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH.

The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.

Happy to share my experiences.

[Anthony L Amos Jr]

Quote from @Enos Vazquez:

Single. Make $100k as a w2. Just bought my first property which I am going to house-hack 2 rooms at $600 each. I live in CA. Should I continue with my idea of buying my first investment home outside of CA? or should I wait let things settle until next year?

The sharks are in the water, circling and waiting for things to "settle". It may be to expensive by then. Buy a great cash flowing property now. Inexpensive markets like Toledo, OH and Cleveland, OH are doing really well for out of state investors. If you are looking for appreciation, Columbus, OH will be great for years to come

[Regina Blake]

Hi, as an Ohio Realtor, I just wanted to inform you that Ohio is a great place to invest in real estate. I have been on the phone and in meetings with people from all walks of life regarding people/investors interested and talking about investing in Ohio. It is amazing what ideas people are coming up with regarding their plans for real estate in Ohio. Some of the people have a love for Ohio and the market and they can live and invest anywhere in the world. Hey, if you want to get a bang for your buck get a piece of the pie. This is the time now! Please feel free to contact me as an Ohio Realtor.

Regina Blake-Ohio Realtor 

[Bradley Buxton]

Quote from @Enos Vazquez:

Single. Make $100k as a w2. Just bought my first property which I am going to house-hack 2 rooms at $600 each. I live in CA. Should I continue with my idea of buying my first investment home outside of CA? or should I wait let things settle until next year?

 There is no perfect time to invest and there are better times. If it’s right for you financially, energy, and time then invest. We are already seeing the market in Tahoe and Reno, NV picking up with multiple offers and short time on the market.  Lots of options for out of state. I suggest Nevada because of the proximity to CA, landlord friendly, and low property taxes.

[Tanner Lewis]

In my opinion, if you are just starting out, I would prioritize investing in higher cash flow states before investing in a higher appreciation state like California. You should look to have a base of cash flow before you are financially stable enough to be in low/negative cash flow markets like California. At the end of the day, it depends on your investing goals and risk tolerance. 

[Jimmy Lieu]

Quote from @Enos Vazquez:

Single. Make $100k as a w2. Just bought my first property which I am going to house-hack 2 rooms at $600 each. I live in CA. Should I continue with my idea of buying my first investment home outside of CA? or should I wait let things settle until next year?

Hey Enos, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

[Taz Zettergren]

@Enos Vazquez welcome to the forums. Awesome, house hacking is the best way to start the portfolio! Now is one of the best times to get into the market, once the Fed starts lowering rates that's going to bring more demand into the marketplace causing prices to increase at a faster pace again so if you get in now you capture that growth and get the opportunity to refi when rates are more favorable in a year or two. I've helped hundreds of out of state investors passively here in the southern/middle part of the country. 

Feel free to reach out if I can be of any assistance. Best of luck! 

[Zeke Liston]

Quote from @Enos Vazquez:

Single. Make $100k as a w2. Just bought my first property which I am going to house-hack 2 rooms at $600 each. I live in CA. Should I continue with my idea of buying my first investment home outside of CA? or should I wait let things settle until next year?

 That's great Enos. If you can purchase locally and still hit your investment goals, I would do that. House hacking is the best way to get started. If you want more cash flow, I would invest out of state. Ohio has several good options. 

[Remington Lyman]

Quote from @Enos Vazquez:

Single. Make $100k as a w2. Just bought my first property which I am going to house-hack 2 rooms at $600 each. I live in CA. Should I continue with my idea of buying my first investment home outside of CA? or should I wait let things settle until next year?

 I know a lot of people in California that purchase in Ohio because the prices are cheaper