Choosing The Right Market For Me

Lender · CO CA TX WA ID OR · Member since 2020 · 419 posts · 542 votes

4y

Hi @Galen Heckathorn I'm also in Sonoma County, I work as a lender but I have investment properties out of state. You should come to our local meetup each month and meet other investors in the area, there may be a connection you can make at the meetup that can help you with an off market property.

Feel free to send me a message when you click on my name and I'll send you the details.

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Wyatt Postal

Flipper/Rehabber · Santa Rosa, CA · Member since 2019 · 38 posts · 15 votes

4y

I sent you a connection request, I’m also in Sonoma county and would love to talk. I also invest locally

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Mike D'ArrigoPro Member

Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes

4y

@Galen Heckathorn you have to ask yourself what values all those local tools and resources available to you add to your bottom line. It's nice to have them but are they really contributing to your bottom line enough to offest the much stronger returns you can get somewhere else? I suspect it's a comfort issue more than it is a financial issue.

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Christian Espana

Member since 2021 · 46 posts · 29 votes

4y

@Galen Heckathorn welcome to BiggerPockets! I sold in Sonoma county last year and purchased in Nashville, TN. Due to the lower costs in TN I was able to purchase a newer house, so less maintenance to worry about. The numbers are looking good as a Short-Term Rental and passive as I have a great property Manager. The distance is not as much of an issue nowadays with home automation and ease of travel. Lastly, are you Robin's brother???

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Colton Hahn

Specialist · Member since 2021 · 322 posts · 273 votes

4y

Quote from @Galen Heckathorn:

Hi All,

I'm new to BiggerPockets. I live in the Sonoma county North of San Francisco, have lived here my whole life. I've been investing since 2013 when I bought my first single family which I then turned into a 2 unit home. I have since bought two more investment properties, one of which I just sold for a great profit. I'm looking to reinvest into multi family either a nice quadplex or two duplexes. I really want to stay local within Sonoma county as my wife and I have a lot to contribute to the properties, renovation skills, a network of subs for when we don't want to do certain jobs, and management skills. as well as knowing the area incredibly well. We are torn though as properties and real estate in general is so expensive here in Sonoma county. Every purchase when financed traditionally is very cash intensive. We have quite a bit to invest from the recent sale of our property but it would go so much father in other markets. That said we would not have access to all the tools and resources that we currently have locally. I would love to hear the communities opinion on how to priorities where to invest and what you all think would be the smartest move.

- Galen

Can't pick a market for you but we target areas in the midwest with particular markers for future success. Areas like Ft Wayne or Des Moines are areas that we really believe in. Great for cash flow and high confidence for appreciation as well :)

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Jade Miali EverettBusiness Member

Real Estate Consultant · Sebastopol, CA · Member since 2017 · 41 posts · 17 votes

8mo

As a property manager that performs a lot of her own maintenance let me just say that it can get overwhelming at times. It depends on the condition of the property, but with California becoming a state that I personally feel is reaching too far into the business affairs of property owners, I would say investing out of state is a much better idea if you have a pair of reliable boots on the ground.

You will almost certainly get tired of managing yourself. Given that this post was so long ago, I am curious to hear what you and your wife decided to do.

Intuitive Property Consulting.

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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
8mo
Quote from @Jade Miali Everett:

As a property manager that performs a lot of her own maintenance let me just say that it can get overwhelming at times. It depends on the condition of the property, but with California becoming a state that I personally feel is reaching too far into the business affairs of property owners, I would say investing out of state is a much better idea if you have a pair of reliable boots on the ground.
You will almost certainly get tired of managing yourself. Given that this post was so long ago, I am curious to hear what you and your wife decided to do.

Why are you responding to a thread that's 3+ years old?
Logical Property Management4.9453 Reviews
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Remington LymanBusiness Member

Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes

8mo

Quote from @Galen Heckathorn:

Hi All,

I'm new to BiggerPockets. I live in the Sonoma county North of San Francisco, have lived here my whole life. I've been investing since 2013 when I bought my first single family which I then turned into a 2 unit home. I have since bought two more investment properties, one of which I just sold for a great profit. I'm looking to reinvest into multi family either a nice quadplex or two duplexes. I really want to stay local within Sonoma county as my wife and I have a lot to contribute to the properties, renovation skills, a network of subs for when we don't want to do certain jobs, and management skills. as well as knowing the area incredibly well. We are torn though as properties and real estate in general is so expensive here in Sonoma county. Every purchase when financed traditionally is very cash intensive. We have quite a bit to invest from the recent sale of our property but it would go so much father in other markets. That said we would not have access to all the tools and resources that we currently have locally. I would love to hear the communities opinion on how to priorities where to invest and what you all think would be the smartest move.

- Galen

A lot of people from CA are investing in the midwest

[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals

Reafco512 Reviews

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Garret Rumbea

Inland Empire, CA · Member since 2017 · 151 posts · 79 votes

8mo

Yeah, while I enjoy living here on SoCal, investing here is a different story. One of my partners owns apartments here, but he's often shared with me how the red tape makes things much more challenging. So we invest and actively looking for large multifamily out of state. On the flip side, I know a handful of other operators who like investing here and have said that due to many investors looking out of state, there's less competition for them. To each their own.

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Arman AhmedPro Member

Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 917 votes

8mo

@Galen Heckathorn

Hi Galen, even though this post is a few years old, your situation is still very familiar to many investors weighing high-cost local markets vs. more affordable areas. Staying local has huge advantages — you know the neighborhoods, have trusted subs, and can manage hands-on, which often reduces risk and surprises. On the other hand, moving to the Midwest lets your capital stretch further, potentially allowing you to acquire multiple properties, scale faster, and see stronger cash flow, though you’ll need to rely more on remote management or local partners. Many investors in your position choose a hybrid approach: keep one property local to maintain hands-on control and familiarity, while adding one or two Midwest deals to diversify, increase cash flow, and test new markets. It really comes down to your risk tolerance, goals, and willingness to manage remotely.

[email protected]614-418-6081

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Bernice RetzloffPro Member

Memphis, TN · Member since 2024 · 234 posts · 100 votes

8mo

Hey @Galen Heckathorn! Welcome to BP, and congrats on the progress you've already made. Turning an SFR into a 2-unit and cycling capital from a profitable sale is exactly how a lot of strong portfolios get built.

You’re wrestling with a very real (and common) fork in the road:

Leverage local advantages vs. deploy capital more efficiently elsewhere.

A few thoughts to consider:

1. Your local advantage is real, and valuable

Having renovation skills, trusted subs, and management experience in-market is a huge edge. That often offsets thinner margins because:

You control rehab costs better

You move faster than most buyers

You reduce management friction

Many investors pay for what you already have baked in.

2. But opportunity cost matters

High-cost markets like Sonoma tend to be:

Equity + appreciation plays

Capital intensive

Slower to scale unless you’re recycling equity aggressively

If your goal is unit count and cash flow growth, your capital will go much further in other markets. Even if you outsource management.

3. This doesn’t have to be an “either/or” decision

A lot of investors in your position do well with a hybrid approach:

Keep 1–2 strong local properties where your hands-on value adds the most

Deploy new capital or sale proceeds into out-of-state markets for cash flow and scale

Let appreciation + refis locally fuel growth elsewhere

4. Ask yourself what this next phase is optimizing for

If it’s:

Lifestyle + control → local makes sense

Scale + income replacement → secondary markets often win

Long-term wealth → a mix of both tends to perform best

I work as a real estate agent in Memphis, TN, and help a lot of California investors make this exact transition. Using markets like Memphis for cash flow while keeping higher-end assets at home. If you ever want to sanity-check numbers or talk through how others structure that balance, happy to help.

Either way, you’re asking the right questions! That’s usually the sign someone is about to level up.

901-664-1949

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James WachobBusiness Member

Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 887 votes

8mo

Welcome to BiggerPockets! Sounds like you and your wife know your stuff. I get the Sonoma struggle though, prices are nuts and buying with traditional financing can take a ton of cash.

Honestly it comes down to what matters most to you. If you want to be hands on and use your local knowledge and network, staying local makes sense even if growth is slower. A duplex or quad in a spot you know well could be solid. If you want to grow fast, other markets will stretch your money more but then you lose that hands on control and local connections.

Some people do a mix, keep one property local where they can add real value and maybe try another market for bigger returns.

I also work with investors looking for hands off cash flowing stuff in Memphis, so if you’re curious about that market feel free to reach out.

At the end of the day it’s just about what you want, hands on and local or bigger growth and more hands off. Both can work.

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Arman AhmedPro Member

Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 917 votes

8mo

@Galen Heckathorn

Hey Galen, even though your post is a few years old, your situation is familiar to many—strong local knowledge and hands-on skills are huge advantages, but high prices can limit growth. For multi-family investing, sometimes the smartest move is looking at Midwest markets where entry costs are lower, cash flow is stronger, and appreciation is steady. You can still leverage your renovation and management skills with local support—property managers, contractors, and lenders—so your investment runs smoothly without being on-site full time.

[email protected]614-418-6081

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Choosing The Right Market For Me

Choosing The Right Market For Me

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