Is starting out in CA a good idea?

Question

I was born and raised and CA and have my family , I'm a new member and have listed to only a handful of podcasts so I'm sorry if this has been covered. I want to begin by buying units going FHA owner occ. I don't currently own but I hear these podcasts of people in other parts of the U.S. buying units for a fraction of the cost that I could ever dream of finding in Orange county. So my question is, would it be wise to begin buying out of state instead?

John Curtin · Answer

Other areas that sell homes for 80k offer better options and yes pickings are slim here  but there are deals out there. You need patience and a good system for finding the deals

Happy hunting

Ali Boone · Answer

I live in LA and I've always bought out-of-state. Tons of bang for the buck! And I was a newbie when I started it. The key with out-of-state is the teams you work with. If you have bad teams in place, the risk is enormous.

Brian Sanchez · Answer

Thanks Lee, I missed your answer (new to the site). Good insight, negative cash flow is my fear.

Brian Sanchez · Answer

Thanks John, I actually work in Laguna Beach. I'm torn between going the O/O units route for my first home because I'm currently renting for $2200/mo.  Units here go for minimum of 300K and a property going for that would be a dump. I'm also concerned about buying the units here for 700K when other states "areas" provide such lower prices.

If any experienced investor can comment on whether "starting" investing with 3.5% down makes sense in CA or is buying a first property out of state as an investment while renting better. (by the way, I can't move out of state)

Lee S. · Answer

Keep reading here and listening to Podcasts then decide what works best for you.  You will here people argue both sides, there isn't one right answer.   I started out wanting to do passive buy and hold investing and that doesn't work so well buying off the MLS in California.  After looking at all my options I've decided to start my own RE business and source California properties on my own.  I haven't seen a single MLS listed property in my area that I would purchase for an investment without having a negative cash flow in the near term.

Is starting out in CA a good idea?

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