Hi Everyone! I currently live in Los Angeles and I am actively looking to start investing in real estate. My ideal first deal would be a multi-family (anything from a duplex to a quadplex) in which I would live in one of the units and rent the rest. I want to work my way up from there, acquiring more rental properties maybe doing some flips. As you are aware, the market in Los Angeles is insane. I am reaching out to the community to get some advice. Should I physically move to a market that is a little more favorable to investing? I'm originally from Ohio and have been tossing around the idea of going back to the Buckeye State (probably Columbus) to start acquiring properties. I am also interested in Pittsburgh and Philadelphia. I've heard mixed things about starting off with out of state investments. The thing I like about investing in your own backyard is that you can closely monitor the market, network with local investors, and give back to your community. I'm not sure if you have the same opportunity with out of state investments. Plus with out of state investments, it's hard to check up on your properties and your property managers regularly. What are your thoughts on investing locally or out of state?

Thanks for the advice, @Josie Roman!

read this thread about the So Cal market: https://www.biggerpockets.com/forums/311/topics/23... Pay particular attention to moshun mah's story (hint, it's all about future values, both rent wise and appreciation wise.) That's why the market is so competitive in LA for 2-4's. If they sucked, no one would be buying them!

What would you estimate your investment horizon/holding period to be on a multifamily investment and what would you estimate your cost of funds to be? Assuming you are getting a mortgage of some sort to finance the investment.

Account Closed , Well I worked for an investor in Los Angeles for around 9 months. After gaining a lot of knowledge and research I realized it would be best for me to move back to Virginia. Investing wise there was no way I was able to stay and do it in LA. For the amount of a duplex in LA you can get 10 properties in Baltimore. Financially is was a great decision but I sure do miss LA. Now my story is a little different. I have friends who are lawyers and realtors so when an upcoming deal becomes available, I'm usually the first to know. So to answer your question, I do have an inside scoop. In Virginia I strictly flip , being that the market is a buyers market. I own two properties in Baltimore. A duplex and a single family that both are being rented out. I use hard money loans for my flips and the profits from my flip I purchase rental units in Baltimore. If your looking to flip, I suggest to move to the city that your focus on. Due to the fact you will have to be a the property pretty much every day. Now for rentals are different. I have a property management company that does all the work for me .

Investment decisions aren't emotional. The numbers tells you if it makes sense or not. The minimum entry for a multifamily investment in Los Angeles may be in the $500,000 range. If you were to invest that amount in another market, where you are likely to get the best internal rate of return (IRR) on the sum is where you would invest in. Negative cashflows on rentals in Los Angeles is very common which by itself is sufficient cause to drive income driven investors elsewhere. Its like investing in stocks. Some income driven investors only invest in stocks that pay dividends. Some only count on the price of the stock appreciating. Each investor has their motive and agenda.

Is Moving from LA to another Market a Good Idea?

CK Hwang

Capistrano Beach, CA · Member since 2013 · 283 posts · 169 votes

Is Moving from LA to another Market a Good Idea?

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