Best State for Real Estate Investment?

Question

Want to start invest in Real Estate. Any suggestion on which state favors the landlord but in the meanwhile still profitable regarding cash flow and appreciation? Wanted to invest in CA but the policy which often favors renters and can be taken advantage by the squatters scared me off

Iris Hou · Answer

@Brendon Seeley Thanks! By "core four" do you mean deal finder, PM, contractor and lender? I actually didn't know so just googled.

Iris Hou · Answer

@Dick Stevens Thanks! I've heard this theory too. My situation tho, is that my state is one of the least profitable (cash flow wise) and least landlord friendly state. It's too crowded and unaffordable. I've been debating between stay here and deal with the area that I'm familiar with or take the risk and do the best I can to find a better deal somewhere else. Any advice?

Brendon Seeley · Answer

@Iris Hou No problem. Still, consider states even with higher taxes. There is always give and take, taxes might be high but property values could be low and your dollar might go far for utilities. If the numbers make sense, then you are good. If you are investing out of state, spend a lot of time building your "core four".

Iris Hou · Answer

@Brendon Seeley Thanks! That's informational. I was eyeing on the Texas market too. They have good Cash Flow, Anticipated appreciation due to job and population growth, and of course is landlord favored. Only thing throughing me off is their high property tax rate, which doubles or even triples the ones in other states sometimes.

Dick Stevens · Answer

The best state to invest in is the state you live in.

Brendon Seeley · Answer

Most states have laws that tilt in favor of the tenant. However, there are states like Texas that are known to have fair laws that are equally beneficial to the landlord and tenant. It falls on you to do your due-diligence of the law to make sure you are adequately prepared for the risks, no matter which market you invest in.