In State or Out of State
Help me with a dilemma BP...
I live in Oakland California where the market is the highest its ever been and I want to get started in REI. I have come up with 2 options and need some advice as to which one is smarter.
Option 1: Buy a single family home in Vallejo CA (about 30 minutes away, close to Napa) for around 270K. Rehab a little and rent it out. Rents are going for 1600-2100. The market there is hot and it looks like it should appreciate very very well. I know the market well here and most importantly I know what people are looking for, me being one of them.
Option 2: Buy a single family or multi unit home in Cleveland for around 80K. Rehab a little and rent out. Rents are typically 1000 for SFR's and 700-900 per unit in MFR's. I have some boots on the ground there that know the area well, neighborhood to neighborhood. Lesser appreciation probably, but a lower price to get in. Maybe buy up a couple of these over the next few years.
Both options cash flow enough but one has more appreciation potential in a market I know. The other is out of state, cash flows maybe a little more with less appreciation but has a lower "get in" price.
Thoughts??
Thanks!
Most Popular Reply
I wonder what makes BP posters think Cali is risky or overvalued? Big money, smart money, money preservers have invested in Cali for decades and from all states for the exact opposite reasons. My observation since being on BP is that the same posters have been spewing this investment nonsense for the last 4 years. In that time, as compared they and their clients have missed out big time. IMO they have zero cred...as they were not able to identify an opportunity in their face...and now we are supposed to believe they can recognize opportunities about random locations they even know less about.
Go with what you know...and if you know something better 1000 miles away great, although it is obvious many are just fooling themselves or simply lying to make a commission. Good luck!