New to RE. HCOL vs LCOL investing

[Ruslan Nazarenko]

Hey everyone!

I’m a completely new to RE and currently in the process of analyzing different markets.

Have a question about HCOL vs LCOL areas.

If this is a common knowledge that a one can expect to get $200/mo from one unit after all the expenses, what is the point of investing in, let’s say, LA vs Houston?

For the price of one unit in LA, you can probably get 2-3 of them in Houston or Chicago.

I was thinking about prices and it seems like you can still find an area with the same price growth, but with an actual price per house being way lower than LCOL markets.

I’m definitely missing something and would appreciate your input!