Originally posted by @Christopher Chen :
@Lane Kawaoka totally agree! The only reason I'm purchasing here is to lower my expenses. I realize I've spent 60k on rent in the past 2 years. Once I've reduced my expenses I plan on investing in Memphis.
Great advice. Are you primarily a cash flow investor? That's what I'm choosing to focus on now.
Totally agree? What a bunch of manure IMO.
Everything in life has a price. Something is a expensive for a reason so is something cheap. The nose bleeding high barrier of entry in our market is to keep the losers out, or shall I say to send people OOS. You know there’s a saying “OOS investing is where CA investors go to lose money” right?
Real estate investing in the Bay Area is a competitive sport, which is reserved for the real “sophisticated investors.” With low to no barrier of entry for a bunch of cheap rentals OOS, why the hell would those people rent from you when it’s cheaper for them to buy with a mere 3% down? If they couldn’t come up with 3% to buy a house for themselves, what kind of tenant profile are you dealing with?
Save yourself the potential headache and heartache and scratch the OOS investing idea out of your mind for now. Spend sometime and learn our real estate market first. Once you figure it out, I guarantee you won’t be looking at the cheap rentals OOS.
Let me leave you with this “If you’re willing to do only what’s easy, your life will be hard. But if you are willing to do what’s hard, your life will be easy.” Investing in the Bay Area is hard where the barrier of entry is so god damn high. Investing OOS is easy where there’s no barrier of entry. 🤔
Best of luck.