Investing out of state

[Dylan Tettemer]

I'm going to be investing out of state and the only area that I do know is too expensive for me to really make any money there right now. Does anyone have ideas on how to pick a state to invest? I'm thinking of moving to Colorado in a few years, but I'm open to anyone's suggestions. Thanks!

[Bill S.]

@Dylan Tettemer what do you mean better? I would say this, interest rates will likely be higher. How much is anyone's guess. I think it's safe to say unless the financial world or the front range economy gets turned upside down, it will cost you more (relative to percentage of income) for your housing in 2019 than it does now. There is currently very high demand and low supply for housing. There is nothing on the near term horizon that would say that's going to change anytime soon. At some point there will likely be an over supply of luxury apartments but for now we are still not out of balance with supply and demand. 

I just attended a presentation for real estate investing outlook yesterday. Right now we still have no end in sight. The last rent run-up lasted 10 years at 10% rent increase per year. We are about 6 years into the current run-up.