I am looking to buy my first deal in 2016. I love the idea of "invest in your backyard" because I do know where the tracks lie. However I live in a high income state compared to the rest of the country and want to make my money go further. Any suggestions? Or words of wisdom? Thank you in advance!
Invest close to you. It is VERY difficult to do it from afar. Especially when you are first starting out.
Good question, I share your pain and fully understand the predicament at hand.
Yes, I too faced the same situation as a New Yorker and decided to take the road less travelled and invest in Atlanta.
However, @Adam Bartomeo also has a point and you can extend your search beyond Washington to the States bordering it and move outwards if necessary.
Frankly, this type of investing can be challenging, but, equally rewarding and it allows for scalability of your funds.
I personally manage my out of State holdings, because of my skills and capabilities, but, you have to think of engaging property management if these attributes are lacking on your part.
Thank you both! I'll be combing through the podcasts and posts for information on this too
The podcasts are a great place to start! In WA, not all areas are high cost though. on the west side, there are areas that are more affordable, then on the east, it's a whole different story unless you're buying in Ellensburg or Chelan of course. the rest of the east has plenty of deals though!
The Texas market is great. No state income tax like Washington. We are business friendly and are on a super growth trajectory to out pace the California tech industry. Oracle just bought land in East Austin for a new campus. Austin currently houses offices for Apple, Paypal, Electronic Arts, Google, Intel, Dell Computer, IBM, National Instruments, Xerox, Silicon Labs, Applied Materials, Rackspace, Yodle, HomeAway and many smaller start-ups. All this and still possible to buy a rental property under $200K.
@Brandon Turner is just in your neck of the woods. Or perhaps a bit further. But he is doing very well investing in WA. Listen to his podcasts and webinars. He's great!
Hey @Rachel Luoto - Welcome to the site! Yeah, I'm down in Grays Harbor - where things are much less expensive! Be sure to also check out https://www.biggerpockets.com/renewsblog/2012/09/2...
Hope that helps some!
Everyone thinks the grass is greener someplace else. If someone is located in San Francisco, NYC, Boston, DC...anywhere that is high cost....there is plenty of low cost areas within driving distance of the most expensive places in the country.
Good morning @Rachel Luoto ,
Don't get discouraged. There are parts of Washington that you can find reasonably priced properties that cash flow very well. There are a number of properties in Grays Harbor County near @Brandon Turner and Yakima near @Erik Gray as well as other parts of the state and NW.
You can private message, email or call me (contact info in my profile) if you want to discuss your goals and get some ideas on ways to reach them.
Best of luck on a prosperous 2016!
The market in Yakima, Wa is super busy. There is not a lot of inventory, but that doesn't mean there aren't any good deals out there. You just need to be ready to go when that deal arises.
Hey Rachel! Options of where to invest completely depend on your goals, what kind of properties you like, risk comfort, etc. I live in LA and have always invested out-of-state because I'm also in a high-priced market. My preferences have always been markets that were a good combo of nice returns, lower risk, and nice chance for appreciation. Within the markets, there's SFRs and MFRs both, lower and higher priced properties, etc.
What do you ultimately want to accomplish with a property? If I know that I'm happy to point you in the direction of some good markets!
Thank you so much for the various perspectives on my question, I was not expecting such a great response from the community!