New member from San Diego looking to learn

14 Replies

Hello Everyone!

I'm Andrew and I live in the San Diego area. I currently work as a budget analyst, and I'm very interested in real estate investing. I don't currently have any properties, but I'd like to get into buy and hold investing. My understanding is that investing locally is generally better, especially for a new investor. But since finding good deals around San Diego does not seem realistic (if I'm incorrect here, please let me know), I'm also interested in learning about long-distance investing, particularly in tenant ready or turnkey properties in areas with better deals.

I’ve already gained some valuable information from Bigger Pockets and am excited to keep learning. If anyone has any advice regarding good buy and hold investment markets near San Diego, long-distance investing, or any general advice for someone starting out, it would be much appreciated.

Thanks so much!

Andrew

I personally always advise people to try to find a way to invest in their local real estate market for many reasons. You KNOW the area, neighborhoods, etc., and where in that area you would feel most comfortable putting your hard earned money. If there's anything that goes wrong, the property is close by and you can find someone to do repairs, etc. more easily. In choosing tenants, if you like, you can actually meet them. 

I've heard many horror stories from investors falling for the "turn key" "do not invest in California" brokers. People buying in areas with rented properties, only to find out the renter was a sham. Properties they didn't see to later find out had major structural issues that were costly to repair. Others bought properties in supposedly up and coming areas that turned out never to turn around and be on the upswing. Is it really worth it? 

If the area is too expensive, think about buying a condo, or partnering with other like minded investor in your area. Go to the local meetups, I believe there are some BP members down your way that have one, and get to know others.  

Just my .02 on it, there are others that LOVE the idea of investing out of their areas. Obviously there are much better prices in other states, and if you go that route, do your due diligence. Check references on any brokers or others that help you find your properties. Ask if they are licensed, and if so, check with the State they are licensed in and see if their license is active, and if they are licensed to sell in the state where the property is. GO see the property yourself. Have someone independently inspect the property for you. Verify the tenants ability to pay the rent etc. for yourself. In other words use caution.

Good luck! 

Originally posted by @Andrew Kewley :

Hello Everyone!

I’m Andrew and I live in the San Diego area. I currently work as a budget analyst, and I’m very interested in real estate investing. I don’t currently have any properties, but I’d like to get into buy and hold investing. My understanding is that investing locally is generally better, especially for a new investor. But since finding good deals around San Diego does not seem realistic (if I’m incorrect here, please let me know), I’m also interested in learning about long-distance investing, particularly in tenant ready or turnkey properties in areas with better deals.

I’ve already gained some valuable information from Bigger Pockets and am excited to keep learning. If anyone has any advice regarding good buy and hold investment markets near San Diego, long-distance investing, or any general advice for someone starting out, it would be much appreciated.

Thanks so much!

Andrew

 Hello and welcome! Best of luck to you!

@Andrew Kewley

Welcome to the BP family! Here are some recommendations for you:

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Wishing you the best!

@Andrew Kewley As someone who also lives in a pricey (not quite San Diego like) West Coast market, I turned my REI sites with out of state turnkeys back in 2012. You have to be extra careful when investing out of state in picking the team you will work with. I suggest you visit the market and learn something about the area first hand as well as the potential providers. Expect to put in a lot of due diligence in the beginning. As an alternative to turnkey, I have more recently focused my buy and hold investing with a company that offers interests in portfolios of 10 SFRs at a time, that are co-owned by the managers for diversifying and aligned interests. These are very passive investments and I have written about my experience in my blog: Have I Found the Holy Grail of Passive Real Estate Investing?

Hey Andrew! I've definitely heard the stances of investing close by is better, but I don't agree for every case (living in SD being one of them). Old article, but breaks down the two choices-

https://www.biggerpockets.com/renewsblog/2015/11/1...

The as far as out-of-state, you can go the turnkey route or the DIY route (I have an article comparing these two too). I've always done the turnkey route myself (I'm in LA) and I wouldn't do it any other way.

Happy to chat about markets or lessons learned or anything that might be of help. Message me anytime!

@Andrew Kewley Welcome to BP! You're definitely not alone here - plenty of new investors from CA are in the same position of trying to feel out whether out-of-state is the right move. Personally, I agree with @Ali Boone , both with regard to the benefits of out-of-state investment and with regard to the DIY route vs turnkey. Of course I may be biased ;) and for some people, the hands-on stuff really is a labor of love. But for people in pricey markets who are new to REI, having someone else take care of the messy stuff can make all the difference. If you do go the turnkey route, however, I'd recommend focusing on finding a team you trust to stand by you for 10+ years instead of focusing on market first. Turnkey can be a mixed bag, so you need to vet your providers really thoroughly. I always say, a great property in a hot market can still be a bad investment if the people you trust to manage it drop the ball. Turnkey really is a people-first niche.

This comes up a lot, so here's a link to a longer post I wrote about this a while back for another CA investor. It includes some questions you should be asking to weed out the good from the bad and the ugly: https://www.biggerpockets.com/forums/55/topics/361999-new-investor-from-glendale-ca

No matter which direction you go, you're in the right place to get plenty of expert advice and guidance.

Best of luck!

Clayton

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