Good markets close to CA

[Patrick G.]

I currently reside in CA and am looking to start doing out-of-state investing with a turnkey provider. Given free cash my plan is to start out modest (SFRs in the 100k or so range). I also have a more than full-time job so my ability to visit the market(s) I'll be investing in is somewhat constrained. While I see lots of great opportunities with providers here in places like OH, TN, etc. I am looking for good markets that aren't a 7+ hour flight away.

Suggestions welcome!

[Jay Hinrichs]

Originally posted by @Patrick G.:

Originally posted by @Tyler Jahnke:

Welcome @Patrick G.! I'm also in the Bay Area!

I've been investing out of state the past few years. Started in the Midwest (Indianapolis and Louisville) and now focused on Phoenix.

To answer your question, Phoenix is a great market that's a quick 2 hour flight direct from Oakland International. Pretty affordable flights too with many flight options. Also:

-Fastest growing city in the US last year (population)

-5th largest city in the US

-Still very affordable cost of living

-7.7% rent growth last 12 months

I'd ask, how often do you plan to visit the market anyways? The fact that you're looking into a turnkey company shows that you want to be pretty hands off and at the end of the day distance really shouldn't matter too much.

The key is to have/build a strong team on the ground. Best of luck and reach out with any questions!

-TYLER

Thanks, I used to work for a company based in Tempe so I was out in that area a bunch although wasn't driving the neighborhoods.

As to how often I visit I'm envisioning at least a couple of trips initially to meet people I potentially want to work with/view properties/etc. and then if I want to do a property a year or so at least once a year and that's being somewhat optimistic assuming that every time I look at a set of properties on a trip I am going to find something to buy. 

first trip will cost you the first years cash flow.

annual trips will cost you about 50% of your cash flow.. so important to pick a place and scale there so your trip expenses if you being honest with your self is spread over many doors..