Northern California Strategy

[David McCready]

Hello Everyone, I live in Sonoma County California and I am currently planning on pursuing long term rentals with flips in between. The more I research the market, the more I feel that out of state rentals are a wiser choice due to prices. My questions to you are as follows: If I go out of state, how do you recommend pursuing properties? I'd rather buy a home before it hits the mls. Should I fly out of state to personally inspect every possible deal? This seems costly... Any advice on how to wisely purchase out of state properties. Should I use a PM? The out of states areas I am considering are Austin, Tx and Lynchburg, Va. Does anyone know these markets and whether or not the are suitable for a long term rental strategy?do you have any trusted contacts in these areas that you would not mind sharing (PMs, agents, handymen... Etc) Thank you for your time and advice. David

[J. Martin]

I would heed the advice of @Joey Budka and @Jay Hinrichs , but I'm a bit biased investing locally. And don't ever plan on selling! (7 Bay Area doors so far).

I closed my best deal so far about 2 months ago, and in contract on another one that I am just as excited about, in a different way. Last deal was all-in after rehab at $430K, and rents above $5K/mo, with another $700/mo in upside. Plus lots of built-in equity. That was in Oakland.

http://www.biggerpockets.com/forums/223/topics/132989-deal-success-story-in-process-cash-flow-in-the-sf-bay-area

There are very few deals that make tons of cash flow from day 1, but if you're willing to buy a vacant REO and roll up your sleeves (or have a good team, like I do), screen to find good tenants, especially w/ vacant units, you can do fine. They are out there. This particular one was on the MLS. Next was not..

Either way, good luck! Just wanted to provide a little inspiration that there is still money in metro CA if you're willing to pound the pavement to find them, then make 'em your own!