Rental properties in the Bay Area

[Tamera McNeil]

Hello,

I am Tamera McNeil and looking into buying rental properties and investing. I would greatly appreciate feedback about buying real estate in the Bay Area. Thank you and excited to be on the BiggerPockets platform. 

[Becca F.]

Quote from @Tamera McNeil:

@Mike Paolucci

I have considered out-of-state markets, including Tennessee, Texas, and Arizona. I also agree with you regarding the Sacramento area. 

Thank you for sharing, I appreciate it. 

 I agree with the Sacramento area. I kind of looked in that area, haven't driven up there to look around. 

I also considered Nashville, Tennessee and Arizona. I visited Franklin and Brentwood, Tennessee more than 10 years ago - really nice suburbs but expensive now.  I know several California investors buying in Texas, specifically Dallas area, but they are doing a syndication to buy an apartment complex. If they bought a single family or 2 to 4 unit in Texas it was at least 5 years ago.  Even though property taxes are high in Texas, I guess they made the numbers work. 

I have a different goal from new investors. I'm not trying to scale or acquire "more doors".  I'm looking at the asset and RE as a store of wealth (as part of my overall investment portfolio) to pass onto my kids. I'm looking at Nevada, either Reno/Lake Tahoe or Las Vegas. Nevada has low property tax rates (as well as Arizona). I would rent out the Nevada property then later on, leave the Bay Area and move into the Nevada home to semi-retire (work on a part-time/contract basis) - there's no state income tax whereas California is taxing all my income, including rental income from my Indianapolis properties. I'm still working out the numbers and pros and cons.