My wife and I live in Southern California and are beginning to browse the internet to gain familiarity with the market and gauge our options. We know there is great potential in purchasing a duplex (or more units) on FHA, living in one unit and renting out the rest. But if you know the home prices in So Cal, you'll know it's a difficult plan to execute there. We also can't leave - our jobs, family, etc. it's not an option.
Our other option is to purchase outside Cali and hope for the best. I know we'll do our homework, but there's a limit to how much research that can be done vs the ground-truthing it takes to know your market.
Does anyone have advice, or cautionary tales?
Make sure you really vet the team you will need in the area you are interested in investing in. This is the most important part. Get tons of referrals from investors in the area and interview them yourself in great detail to make sure you are comfortable moving forward with those individuals. This includes an agent, property management company, contractor, inspector, etc. Usually from talking to enough investors that know the area well you can get a good idea of the market and what specific neighborhoods would be the best to invest in. Investing out of state is a great option for folks in Cali for obvious reasons haha. There is a lot of data out there that suggest what areas are the best for cash flow and ROI. That might be a good starting point for you. Best of luck!
That's great advice. Thank you, sir.
Well it's not just the prices in SoCal that are pretty gnarly, you really wouldn't be able to expect any positive monthly cash flow with househacking either so you'd be solely relying on appreciation. Which, to each their own.
I'm in LA/Venice and I've always bought outside of Cali. It can definitely be done. It's all about the teams you have in place.
Reach out anytime if I can be of any help!
Great! Thank you, neighbor!!
@Jacob Abuata thank you for posting something that I have been thinking myself. I live in Long Beach and can't get the numbers to work. At the same time, I don't know where in the States would be good for me to invest. I don't know where to begin to research an area. Does anyone have any tips on selecting a market?
since we are in the same boat so to speak, I'm happy to share any information that I can find on other markets.
We can share any information we come across too. It's a scary decision to make, but I think what's important is that we do the research and take a leap of faith. Goal being - we've set up the right team and know we've done our best to limit our chance of failure.
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