CA vs TX or Detroit?

[Charlie Recinos]

Hi to all the wise and experienced investors on BP,

My name is Charlie Recinos and I reside in Los Angeles County. I've been looking at a few lower priced markets in the area such as San Bernardino County, and the Antelope Valley.

What I could purchase here, for $500k for example, I could purchase 5 properties elsewhere instead of just 1.

Have you found success out of state?

My main goal is to cash flow.

What are some of the pros and cons of investing out of state?

[Jimmy Lieu]

Quote from @Charlie Recinos:

Hi to all the wise and experienced investors on BP,

My name is Charlie Recinos and I reside in Los Angeles County. I've been looking at a few lower priced markets in the area such as San Bernardino County, and the Antelope Valley.

What I could purchase here, for $500k for example, I could purchase 5 properties elsewhere instead of just 1.

Have you found success out of state?

My main goal is to cash flow.

What are some of the pros and cons of investing out of state?

Great question and welcome! If your main goal is cash flow, investing out of state can absolutely make sense as long as you're buying in a market with solid fundamentals and building a dependable local team. The biggest advantages are often better cash flow, lower purchase prices, and the ability to diversify instead of having all your money tied up in one property. The biggest challenges are managing from a distance, finding trustworthy contractors and property managers, and learning the local market before you buy. I moved from Portland to Columbus in 2020 to invest and now own 10+ rentals, so I've been on the out-of-state side myself. If you're looking at different markets, I'd definitely put Columbus, Ohio on your list. Strong population and job growth, major employers like Intel, Google, Amazon, Microsoft, Honda, LG, Nationwide, and Anduril continue investing in the region, and there are still opportunities to find properties in the $120K-$180K range that can produce positive cash flow. One of my rentals was purchased around $120K and now rents for about $1,550 a month, so deals are still out there if you're patient. Happy to connect and answer any questions you have!