Valencia, CA · Member since 2016 · 26 posts · 18 votes
I live in Los Angeles and completely priced of this market. I'm having a hard time finding a good out of state location. My friend lives in AZ and suggested Downtown Phoenix. She said there are several districts there that are being revamped. Any thoughts on that area?
@Zach Quick I am from California as well. While I do agree with you on investing where you live. Unless you have a good amount of capital to start with, it is really hard to start here. On top of that since the prices are so high right now, if there is a downturn you will have to cover the negative cash flow when rent starts to trend down (which is what is happening in san francisco right now) as well as lose equity. Yes you will get it all back in 10-15 years but in terms of return, would it not be better to invest out of state where you cash flow and and bring that return back to california when the market has bottomed out. Just a thought, as this is the route I am planning taking. Building a cashflow portfolio out of state, and bringing it back to home once things cool down a little more.
Good morning, when observing the landlords that we represent them in rental properties, they seem to hold to the idea of buying and holding. They have hundreds of units and continue to purchase and rent. It is truly their business and livelihood. If done correctly where you are able to purchase in an area where costs make sense and there is a high demand for rental properties would be what you want to research and seek out. Perhaps in your state there is a location that is "hidden" in a sense, where prices are very within reason but at the same time would generate a high influx of renters. You be surprised towns that may have been so-called "not on the map", but once the word is out what renters can rent for their funds and they live in a town that is nearby or even a bordering state that is in a higher bracket; the word gets around and in time rental properties become in high demand. Have seen many places where in time they were once very "low-key" cities but as the word got out now to buy or rent in these towns is impossible because the value has appreciated so due to the demand. Happy house hunting :)
This is to the OP. Can you summarize the conclusion you have reached after these responses in terms of where you have shortlisted your investment area?