Yet another starting out thread, sort of
Well I officially haven't started out yet, and that is where I am running into problems.
I'm from california, specifically the bay area. Housing prices are stupid at best.
I want to invest in REO's, rehab them, and turn them into rental properties. The general feeling that I am getting from the different investors is don't buy in california right now, its impossible to find properties that will run cash positive.
So I start to look at out of state, and start talking to investors that I know about that. They all tell me, don't go out of state, unless you can drive 30 minutes and see your property, don't buy it.
What am I suppost to do? move away from california? forget real estate and invest in other financial vehicles?
For people that invest out of state, what sort of problems do I need to watch out for? I know that I will need a property manager, and that will eat up 8-10% of the gross monthly rent, which I am alright with as long as I am positive 100-200 a month after "ALL" expenses are covered.
So far I am liking texas, but am concerned with the property taxes, and the distance to get to the house if I have to.
sorry if this is all over the place, lots on my mind.
Back to reading BP to learn more.