Am I in the wrong market to begin investing in real estate?
Living in Los Angeles is daunting as a newb real estate investor. In reading the forums (and consuming YouTube and podcast content), it seems there are a number of investors (new and pro) who have relocated to markets with better opportunities. I know there is always the option of finding my first deal out of the city (in-state/not in LA or out of state), however, would like it to be local (might even be a live in situation with tenants for a year while I plan for my second door).
My broad goals (being a newb, I’m sure the finer details will come with time):
Long-term (next 5-10 years): "Retire" from my low $100Ks career with a diversified portfolio compromised of real estate (primary) and investments through 401K + supplemental Roth IRA (secondary). Been making my secondary focus primary the last 2-3 years by maxing out my 401K and contributing my tax return to my Roth IRA; so would like to contribute my income/savings directly into real estate).
- Short-term: First door (within the next 12 months): buy and hold, single or multi-family (duplex) while assuming best practices re wealth generation standards / Being a first time buyer – I’m open to approach: house hacking, etc.
Here are my specific questions:
- Any investors who left a challenging market for a more promising one? (why/why not – if you have, how did it all work out for you? Worth it?)
- Anyone in the larger Los Angeles/surrounding areas market who have had luck securing an entry property? Any words of wisdom in finding a deal in this market that’s a reasonable buy for someone starting out? I've been reading up on lead gen, so understand many of the best practices there.
- Any other thoughts on the topic greatly appreciated.
Thanks for your advice, and all the inspiration in the forums. I will pay it forward down the road!