Backyard investing or out of state?

[Dillan Mamou]

I have 70k cash ready on hand. I live in SoCal where homes are a 4cap at max. Househacking seems very desirable with an FHA loan or would out of state investing make more sense. I feel more comfortable investing in my own backyard.

[Dan Nelson]

It sounds like you have your answer.  If you want to househack, you have to do it where you are living.  There are other areas where you can make much more cashflow, but your house might appreciate faster than other markets.  If you can put 70K down and get a house you can afford with tenants, it makes a lot of sense.  The worst-case scenario is you hate being a landlord and you sell your house.  If you do it out of state, it is far more complicated.  But either is a great idea.  As long as you do the math and know the property fits your goals, the only mistake you can make is waiting.  My biggest regret is that I spent years trying to learn everything before starting.  You really don't learn anything until you start.