New Investor looking to get into rentals.

Member since 2026 · 5 posts · 8 votes

Im currently looking at buying a property with 50-60k equity straight away. I’m 21 and don’t have deep pockets so it will be my personal residence for awhile. Also I’m in CA and have always been told not to invest in rentals here due to tenant rights here. I don’t want to pass on this deal but also really wanting to get a rental property out of state. Just trying to get insight from a 3rd party.

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Kerlous TadresBusiness Member

Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes

9mo

I’d recommend living in the property first and house hacking it to keep your costs low while you learn. After that, use the experience and equity to invest out of state where rentals are easier to manage.

[email protected]614-490-1163

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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 951 posts · 647 votes
9mo
You’re asking the right questions, especially at 21. That already puts you ahead of most people.

A few objective points to consider:

Living in the deal first is not a weakness.

House hacking your primary is often the cleanest way to get started when capital is limited. You get owner-occupied financing, learn property operations firsthand, and reduce your downside while you build experience.

California isn’t “uninvestable,” but it is unforgiving for beginners.

Tenant protections don’t automatically make a deal bad, but they do magnify mistakes. Thin margins + strong tenant rights + limited reserves is a tough combo for a first rental.

Out-of-state can work, but only if systems come first.

Remote investing fails when people underestimate:

• Property management quality

• Rehab oversight

• Cash reserves

• Local compliance

If you go out of state, you’re not buying a house, you’re buying a team.

Equity on paper isn’t liquidity.

That 50–60k in equity is real, but it’s not usable until you refinance or sell. Don’t let that number push you into overconfidence early.

If this were me at 21, I’d prioritize:

• A conservative house hack that cash-flows or breaks even

• Learning tenant screening and maintenance basics firsthand

• Preserving flexibility for deal #2, not maxing leverage on deal #1

There’s no rush. Your biggest advantage right now isn’t speed, it’s time and optionality.
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Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
9mo
I’d recommend living in the property first and house hacking it to keep your costs low while you learn. After that, use the experience and equity to invest out of state where rentals are easier to manage.
[email protected]614-490-1163
Kerlous Tadres | Reafco Real Estate542 Reviews
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Peter Dorinsky
Real Estate Agent · Columbus, OH · Member since 2020 · 149 posts · 193 votes
9mo
Quote from @Kayden Austin:
Im currently looking at buying a property with 50-60k equity straight away. I’m 21 and don’t have deep pockets so it will be my personal residence for awhile. Also I’m in CA and have always been told not to invest in rentals here due to tenant rights here. I don’t want to pass on this deal but also really wanting to get a rental property out of state. Just trying to get insight from a 3rd party.

Hey Kayden! Love to see you getting into the game early.

For a first deal, investing locally is generally a smart move, especially if you plan to house-hack and live in the property for a while. While California’s tenant-friendly laws can definitely be inconvenient, I personally think the benefits of being local for your first investment outweigh that challenge. You already have boots-on-the-ground market knowledge, and it’s much easier to handle maintenance, upkeep, and tenant management locally.

Your first investment will certainly come with a learning curve—and probably a few mistakes—but investing in your own backyard helps reduce risk while you build experience. The knowledge you gain from that first property is incredibly valuable and can set a strong foundation as you scale your portfolio.

Also, if you plan to live in the property, you’ll have more favorable financing options available to you, which is another big plus.

Best of luck as you start out!
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Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 720 votes
9mo
@Kayden Austin
CA is still a great place to live, and there are horror stories in any state trying to evict people. If you can get into a house hack in a duplex in CA, you'll be in the game. The important part is to choose good tenants, know the law, communicate clearly and directly, and be a good property owner. If you don't want to invest in Redding, there might be other areas like Shasta or Chico (college town) that you might like to live in more.
1 Reply
Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
9mo
Quote from @Kayden Austin:
Im currently looking at buying a property with 50-60k equity straight away. I’m 21 and don’t have deep pockets so it will be my personal residence for awhile. Also I’m in CA and have always been told not to invest in rentals here due to tenant rights here. I don’t want to pass on this deal but also really wanting to get a rental property out of state. Just trying to get insight from a 3rd party.
Welcome to BP, Kayden, and honestly you’re thinking about this the right way for being 21. If you’re getting into a primary with 50–60k of instant equity and it fits your budget, that’s usually a solid move, especially since it gives you a place to live while you build experience and net worth. Living in it for a bit lets you stabilize your finances, maybe house hack, and eventually use that equity to jump into rentals when you’re ready. You’re also not wrong about California being tough for landlords, which is why a lot of investors eventually look out of state once they want true cash flow. When that time comes, I’d strongly suggest looking at Columbus, Ohio. The macroeconomics here are on fire with strong population growth, job growth, and massive companies expanding like Intel, Amazon, Google, Honda, Microsoft, LG, and more. The big difference is you can still buy properties in the $120–180k range that hit the 1% rule and cash flow while also having serious appreciation upside, and Ohio is very landlord friendly compared to CA. Many investors use their primary residence equity as the launchpad to markets like this, so you don’t have to choose one path forever, just the right next step. Happy to connect and answer any questions you have!
[email protected]614-300-7535
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- Kayden Austin
  OP
  Member since 2026 · 5 posts · 8 votes
  9mo
  @Jimmy Lieu thank you very much! I also know of some local investors to me investing in Indiana do you know of any downsides to that? I appreciate your advice.
  0 Reply
Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes
9mo
@Kayden Austin
Hey Kayden, you’re thinking about this the right way, weighing the risks and looking for opportunities where your money works harder. Out-of-state rentals in strong Midwest markets often give you much better cash flow and lower entry prices compared to California. Starting with a manageable property in a solid neighborhood can help you gain experience, build equity safely, and learn the ropes of being a landlord without overstretching yourself.

[email protected]614-418-6081
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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
9mo
Quote from @Kayden Austin:
Im currently looking at buying a property with 50-60k equity straight away. I’m 21 and don’t have deep pockets so it will be my personal residence for awhile. Also I’m in CA and have always been told not to invest in rentals here due to tenant rights here. I don’t want to pass on this deal but also really wanting to get a rental property out of state. Just trying to get insight from a 3rd party.

What makes you think this property you are looking at has $50-60k of equity?
What percentage is this?
- There's a big difference if the property is worth $200k vs $2M!
Logical Property Management4.9464 Reviews
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- Kayden Austin
  OP
  Member since 2026 · 5 posts · 8 votes
  9mo
  @Michael Smythe buying the property for $180k and ARV is 260k-270k. Only needs 10-15k of work. You're right I should of clarified.
  0 Reply
Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
9mo
@Kayden Austin you're overthinking it. Find a place in your budget where you want to live and either get roommates or a 2-4 unit to rent out. I invest in red, blue, and purple states. One could argue that the best long term investments are in the states with laws that favor tenants. There is no better historical returns on real estate than places like San Francisco, Boston, Seattle, etc. from a total return perspective.

And don't listen to @Jimmy Lieu - go into his account history, and you'll find that he has copied and pasted that same message hundreds of times. He's kind of a cancer to the forums and adds no value at all...just spams out the same post to new investors.
2 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
9mo
Quote from @Kayden Austin:
Im currently looking at buying a property with 50-60k equity straight away. I’m 21 and don’t have deep pockets so it will be my personal residence for awhile. Also I’m in CA and have always been told not to invest in rentals here due to tenant rights here. I don’t want to pass on this deal but also really wanting to get a rental property out of state. Just trying to get insight from a 3rd party.

I am also looking to buy a property with 50-60k equity straight away. Free money!
[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
9mo
Quote from @Kayden Austin:
Im currently looking at buying a property with 50-60k equity straight away. I’m 21 and don’t have deep pockets so it will be my personal residence for awhile. Also I’m in CA and have always been told not to invest in rentals here due to tenant rights here. I don’t want to pass on this deal but also really wanting to get a rental property out of state. Just trying to get insight from a 3rd party.

That's a good chunk of equity but you are not going to find that in California. Depends on how much savings you have. Typically, you can negotiate 15-20% off of the true market ARV. Find the deals off-market and negotiate in the beginning and negotiate after inspections (use the report as leverage).
[email protected]614-802-5698
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