Newbie from LA, looking for other states for investing

New Member Introductions
8yFollow

Newbie from LA, looking for other states for investing

Julie Baek
Los Angeles, CA · Member since 2018 · 2 posts · 1 vote

Hello BP!

I'm Julie and living in Los Angeles. I moved here last October from Korea, and started 'Study' real estate investment instead of looking for a new job here. As everyone knows California markets are hot and insanely expensive, I'm thinking to invest out of state. What do you guys think about Las Vegas? Still figuring out what works for me better between cash flow and appreciation. 

Any advice or opinion will be great as I'm totally newbie for real estate industry, also this country.

1Reply
80 views

Most Popular Reply

Jeffrey Leung
Alhambra, CA · Member since 2016 · 9 posts · 3 votes
8y

Hi Julie, I am also an investor from LA. I have been investing in real estate since 2012. I got couple of properties in CA but doesn't cash flow that well. HOA is killing my returns. Las Vegas is okay but isn't landlord friendly and the returns are not that great. I invested in couple of properties in Kansas City and I am looking into Dayton Ohio and Indianapolis. Let me know if you are looking into those markets also. Welcome to BP and GL!

2Reply
See this reply in the discussion

18 Replies

Jump to latestLatest
  • Alex Deacon
    Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    @Julie Baek have you considered the Pittsburgh Market? The prices are probably 25% or less of what they are in some of the larger cities in the US.

    0Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    8y

    For most out of state investors Vegas isn't the answer it is similar to the inland empire but more isolated from the job centers in LA and Orange County (ie if you live in Vegas you work in Vegas)  I encourage you to look at both and possibly other markets, but if you are counting on appreciation and are planning to hold for a long time Prop 13 in CA is a nice thing to have.

    1Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    @Julie Baek

    I'm in Orange County, and been where you are now starting. There are lots of forum posts about Las Vegas. Once you analyze OC/LA, then Riverside, San Bernadino, Bakersfield, Fresno, and High Dessert, you will arrive at the conclusion I arrive 4-5 years ago.

    Las Vegas multi's are my niche. Leverage your money by getting loan at 25%. I bought when they were 170-200k. Now about 250-280k. I think it is still a good deal and will positive cashflow to about 500 net after all expenses including PI payment. 

    Terry

    https://www.biggerpockets.com/forums/712/topics/51...

    0Reply
  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    8y

    Welcome, @Julie Baek

    Yes, SoCal can be a tough nut to crack for newbies.

    A couple years ago I mailed out lots of letters to homeowners across LA County with no luck.

    Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

    The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

    Also, have you considered an owner-occupied small multifamily for your first deal?

    You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

    My first deal was a 4-unit up I bought withFHA3.5% in Santa Clarita.

    I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

    Good luck!

    Clarita CPA Group516 Reviews
    WebsiteView Page
    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    8y
    Julie Baek CA never worked for cashflow. It’s a primary market. You need to look farther out to the south and Midwest for cashflow if that is your strategy and you aren’t afraid of gambling for appreciation. Las Vegas is too close to CA and gets a lot of investors plus everyone thinks it’s the next best place because of the Raiders moving there.
    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    8y
    Originally posted by @Julie Baek:

    Hello BP!

    I'm Julie and living in Los Angeles. I moved here last October from Korea, and started 'Study' real estate investment instead of looking for a new job here. As everyone knows California markets are hot and insanely expensive, I'm thinking to invest out of state. What do you guys think about Las Vegas? Still figuring out what works for me better between cash flow and appreciation. 

    Any advice or opinion will be great as I'm totally newbie for real estate industry, also this country.

     Hello and welcome! Best of luck to you!

    1Reply
  • Jeffrey Leung
    Alhambra, CA · Member since 2016 · 9 posts · 3 votes
    8y

    Hi Julie, I am also an investor from LA. I have been investing in real estate since 2012. I got couple of properties in CA but doesn't cash flow that well. HOA is killing my returns. Las Vegas is okay but isn't landlord friendly and the returns are not that great. I invested in couple of properties in Kansas City and I am looking into Dayton Ohio and Indianapolis. Let me know if you are looking into those markets also. Welcome to BP and GL!

    2Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    8y

    @Jeffrey Leung 

    Las Vegas isn’t landlord friendly to you? It MIGHT not be the most friendly but I put it in the top 10%. 5 day pay or quit and then the constables if they aren’t gone. In almost 20 years with 12 properties I’ve had to post two pay or quits. One paid, one vanished so maybe someone will say they’ve had horrible experiences but I doubt it would be government caused. What made you think it wasn’t landlord friendly? In many ways It is slowly following horrible California examples, but it’s resisted most of its real estate ideas. 

    Las Vegas is way more expensive than 5-10 years ago but if you live in California you’re choices are vegas, Phoenix or far far away.

    1Reply
  • Nita Taylor
    Residential Real Estate Broker · Naperville, IL · Member since 2015 · 26 posts · 7 votes
    8y
    Hi. Lots of investors from Cali invest in the Chicago market. I'm a local realtor & investor so let me know if you have questions.
    1Reply
  • Jeffrey Leung
    Alhambra, CA · Member since 2016 · 9 posts · 3 votes
    8y
    I meant to say that Las Vegas is not as landlord friendly compare to our states. I read somewhere that eviction process takes about two months in Las Vegas. The pay or quit notices are usually just the beginning of the eviction process. Here in CA it is a 3 day pay or quit but the eviction process is long and arduous. Even with the Kansas City properties can take a minimal of 1 month. If you can get a the sheriff to do a lockout in within a week then you gotta share your secret with me. All I know for sure is that CA eviction process is a pain once you start. Even if LV is landlord friendly you should also look at the numbers
    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    8y

    Sorry @Jeffrey Leung,

    I thought you were comparing us to the posters home state of california. 

    To the best of my knowledge it’s 3-5 day pay or quit, 24 hours after 3-5 days you got to judge, he gives you paperwork for Constable and next business day they lock them out. Start to finish might not be done in a week but 2 weeks should be easy barring any screwups by landlord. Plus there are “100’s” of companies here that will do it for almost nothing either to tack on their fees to Tennant or get your future business. The constables end up being the most expensive part. $24 plus $2/mile. 

    0Reply
  • Sean Tarpenning
    Turnkey Investment Provider · Kansas City, MO · Member since 2015 · 1k+ posts · 116 votes
    8y
    Julie Baek I like the Las Vegas market. We currently invest in Kansas City and Dayton. But have our eyes on a few new markets, including Las Vegas. Best of luck to you! Happy to answer any questions you have.
    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    @Sean Tarpenning

    I get that locals like to invest in their market. If cannot get good cashflow and/or appreciation, then out of state. I'm in southern california, and looked at Cleveland, Ohio, but those 5% of sales price property tax sure was a big negative. Also, high property tax in Chicago.

    The below link gives top 100 markets forecast for 2018, and can't go wrong with top ten. The Las Vegas market was ranked #1, and estimated appreciation of 6.5%. The first two months, January, and February, had year over year at 11%, and 14%. If this two months are any indication of next 10, I think easily double digits appreciation.

    Are you looking into Las Vegas due to actual appreciation, Raiders hype, or constant #2 vs cities like Seattle?

    Terry

    https://www.biggerpockets.com/forums/712/topics/51...

    0Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    8y

    @Julie Baek welcome to the BiggerPockets community. I’m in Burbank, California, half the week and Arizona the other half. Most of our properties are in Arizona and we experience both cash flow and appreciation. What are your real estate investing goals?

    480-206-1209Podcast Guest on Show #287
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    8y
    Originally posted by @Julie Baek:

    Hello BP!

    I'm Julie and living in Los Angeles. I moved here last October from Korea, and started 'Study' real estate investment instead of looking for a new job here. As everyone knows California markets are hot and insanely expensive, I'm thinking to invest out of state. What do you guys think about Las Vegas? Still figuring out what works for me better between cash flow and appreciation. 

    Any advice or opinion will be great as I'm totally newbie for real estate industry, also this country.

     Welcome to the site Julie.

    I recommend setting up keyword alerts for Las Vegas & Turnkey. I haven't noticed too much attention on Vegas specifically here on BP, but turnkey is one of the most commonly discussed topics.

    I don't know much about Vagas but I've been around the turnkey block many many times. Feel free to tag me in any threads where your asking turnkey questions. I will provide my $.02 whenever I can.

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    8y
    Originally posted by @Julie Baek:

    Hello BP!

    I'm Julie and living in Los Angeles. I moved here last October from Korea, and started 'Study' real estate investment instead of looking for a new job here. As everyone knows California markets are hot and insanely expensive, I'm thinking to invest out of state. What do you guys think about Las Vegas? Still figuring out what works for me better between cash flow and appreciation. 

    Any advice or opinion will be great as I'm totally newbie for real estate industry, also this country.

     Hello and welcome! Best of luck to you!

    0Reply
  • Blake Brose
    Realtor · Kansas City, MO · Member since 2014 · 148 posts · 40 votes
    8y

    If you are looking for cashflow or flipping properties? If you are looking for cashflow, Kansas City is the place to be! Not bad for flipping, but there are better markets.

    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    8y

    @Julie Baek Welcome to the states and to this site!  I mostly grew up in LA, but long time northwesterner now.  My market is not good for cash flow either, so I have been investing out of state since 2012.  The southeast and midwest is where I have focused.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free