Long distance investing

[Ethan Aycock]

I live in an expensive area. Would it be better to long distance invest or short term to begin with?

[Ellie Perlman]

@Ethan Aycock - it depends on your strategy. I live in LA, where cap rates and (cash flow) returns are compressed - which is great for investors who are interested in appreciation (vs cash flow). So if you want a (potential) high payout somewhere in the future, than core markets such as LA/NY/SF etc will be good markets for you. On the other hand, cash flow investors, like me, tend to invest in secondary markets. I invest in FL and TX, where appreciation might not be a s high as in LA, but the cash flow is significant and much higher than in core markets.