Just curious on whether people have done it before actually owning any property? The area I live in the average home price is upwards of $700,000. I've looked through nearly every deal on the MLS in my area and haven't been able to make the numbers work.
Is it time to look at other markets?
@Cayce Fedberg this is a question only you can answer, but I would challenge you to look in a one hour radius before abandoning your market. You didn't mention which market this is, so I can't give more specific advice. I work, live and invest in the Chicago suburbs, and there are areas where the homes are over 1 million. These areas are 15 minutes from some of the best investing areas in Chicago.
There was a time that I actually thought the market in Chicago was not a good one for investing, and I moved my attention out of state. I most likely wasted a lot of time as there have been plenty of great deals here as I delved into the market in a more sophisticated way.
@John Warren Thanks for taking the time to answer, I really appreciate it. I live in Canada specifically Victoria (city located on Vancouver Island population of roughly 100,000). I'm curious if you have any advice on focusing my attention to another market; do you think it's too difficult for a beginner?
@Cayce Fedberg the main issue with investing in another market is that you have less control of your investment. I own a 20 unit in South Bend, Indiana, which is about 2 hours from my home in Chicago. My property management company does a decent job, but after a recent walk of the property I realized I needed to immediately fire my lawn company (he took a 3 week vacation in the summer!). I also realized that the management company had been doing slightly sub standard work, and a lot of the "repairs" were not of the quality I would prefer.
For my apartments here in the Chicago area, I generally speaking have excellent contractors and have tight control over the quality of the apartments. This is much harder to do from afar.
With that being said, my one out of state property has been very, very profitable, so I can live with things being a little less pristine than I would prefer. Seeing north of 20% COC helps with that!