Livermore, CA · Member since 2016 · 44 posts · 13 votes
I am currently living in the east bay area of San Francisco, with a rental property in San Diego. I am thinking of selling the my SFR in SD and using a 1031 to invest in a more cash flow friendly market. I have been thinking about investing in Houston TX and I'm wondering if any fellow Californians have gone this route.
Im thinking of doing a simpler deal with maybe less immediate equity at first just to get my feet wet and satisfy the 1031 exchange timeline. But then after that I want to pull equity out and start using the famous BP BRRRR strategy to expand my portfolio.
I understand there is a lot of complications with out of state investing, but it seems like it can be done and that the rewards can be worth it!
I am an investor that lives in California (San Diego) and has had and currently has investments out of state (Nevada, Missouri, Mississippi). I use the triple check method when dealing with out of state purchases. 1 - Check with property management companies and ask them for Investor friendly Realtors. 2 - Check with Realtors and ask for property management companies. 3 - Call Contractors/Inspectors and ask which Realtors & Property Management Companies work with investors.
What I've found is that after I spoke with multiple Realtors, Property Managers and Contractors, I would start hearing common names and automatically narrow down my search for who knew the area and had experience working with investors.
By the way, I work with a team of investors down here in San Diego that may be interested in the property you are selling? I can also introduce you to a couple investors in Houston as well.
I am pro San Diego investing but I would not let the out of state be much of a factor as there is not a huge difference between investing hundreds of miles away (current) and a thousand plus miles.
Hi @Dan Tsunekawa, if you're an accredited investors who is seeking to defer your capital gains tax but doesn’t want to be a landlord anymore you might consider reinvestment into DSTs (Delaware Statutory Trusts). They are hands-off, institutional grade real estate investments, and they allow you the option to diversify. You can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse. Happy to answer any questions you may have.
I started my career investing in Houston and the cash flow #s are stellar compared to other major markets (even within Texas). There is a tremendous investor community there and hopefully you can tap into their resources to make sure you are working with high-quality professionals.
My only advice, and I know people would say this about most cities, is to be very particular about where you invest. Even more so than other cities, prime areas and "avoid like the plague" areas are butted right up against each other.
I definitely think its worth your effort to learn more!
I am an investor that lives in California (San Diego) and has had and currently has investments out of state (Nevada, Missouri, Mississippi). I use the triple check method when dealing with out of state purchases. 1 - Check with property management companies and ask them for Investor friendly Realtors. 2 - Check with Realtors and ask for property management companies. 3 - Call Contractors/Inspectors and ask which Realtors & Property Management Companies work with investors.
What I've found is that after I spoke with multiple Realtors, Property Managers and Contractors, I would start hearing common names and automatically narrow down my search for who knew the area and had experience working with investors.
By the way, I work with a team of investors down here in San Diego that may be interested in the property you are selling? I can also introduce you to a couple investors in Houston as well.
@dan tsunekawa ,
Hi Dan, I live in Spring, TX and a Realtor and property manager. Feel free to reach out with questions about the area. I'm more than happy to assist if possible.
Chris
@Dan Tsunekawa the idea of investing out of state is attractive. However, if you have not done so yet, I encourage you to take a look at how property taxes will effect you in the two different states. If you plan a buy and hold strategy, prop 13 is a great friend...