Debt/Income ratio & market based decision

[Adam Roberts]

Hey folks - as I'm starting out and looking to make my first move in REI, I've been thinking about my decisions as if I'm playing chess - trying to think 2 or 3 moves ahead. I'm currently living in Los Angeles/Orange Cty, and I want to get into buy and holds to generate cash flow/rents. I've had a few discussions with colleagues in the business and I am being warned about buying props in SoCal and taking a hit to my debt/income ratio rather quickly - thus making it difficult if not impossible to take on additional debt/loans.

As I'm looking to eventually build a portfolio of 5+ properties in the next year or so, is this something to take into serious consideration and should I look at different (lower priced) markets given my goal above?

I plan on having similar discussion with a community banker/lender, but wanted to see what other folks have to say on the topic here as well.

Thanks in advance for the commentary!