My Fellow California Investors

Monico LorenzanaPro Member

New to Real Estate · Chino, CA · Member since 2022 · 24 posts · 7 votes

Where are Investors from California looking to invest out of state?

What are the migration trends out of California and out of New York?

Anything to help point me in the right direction. Thank you.

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Rick Albert

Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes

I always recommend house hacking in CA, then using equity to buy out of state. That's what I have been doing.

You can check out howmoneywalks.org. There they show where people are moving to (information might be slightly outdated but conceptually there).

In terms of where to invest, there are pros and cons to literally everywhere. The areas people are mentioning are getting expensive, so you may have to go off to locations that not everyone is talking about.

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Monico Lorenzana
I still know a lot of investors from California still investing in California. While I don’t invest there, I still scratch my head at pricing but they still are making good money if you invest in good areas.
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Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Monico Lorenzana:

Where are Investors from California looking to invest out of state?
What are the migration trends out of California and out of New York?
Anything to help point me in the right direction. Thank you.

There are lot of data on this. Most out CA immigration is going to NV,FL,TX and even HI. Most NY going to FL.
CA investor is investing into FL,AL,OH,WI,IN and TX.
1 Reply
Hamp Lee IIIPro Member
Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
3y
San Antonio is a great market to check out.
3 Reply
Rick Albert
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3y
I always recommend house hacking in CA, then using equity to buy out of state. That's what I have been doing.
You can check out howmoneywalks.org. There they show where people are moving to (information might be slightly outdated but conceptually there).
In terms of where to invest, there are pros and cons to literally everywhere. The areas people are mentioning are getting expensive, so you may have to go off to locations that not everyone is talking about.
5 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
3y
Hey Monico, I'm in the Central Coast (Arroyo Grande).
We're doing two things right now:
1) Building an ADU on our primary. It's a long process, and we're in the early innings yet. But I've been pleasantly surprised at what we're seeing for costs on new construction. It's encouraging!
2) Investing in Detroit. I hold 12-doors there and am actively buying. I also work with other investors to get started there. I was in Detroit Metro for 5 years so I have a super strong network and access to great off-market deal flow.
I'm getting way ahead of myself here but after the ADU is complete I'm intrigued by perhaps doing more new construction here locally. That would be in conjunction to continuing to build the Detroit portfolio.
3 Reply
Andres Murillo
Real Estate Agent · Los Angeles, CA · Member since 2022 · 137 posts · 106 votes
3y
I'm helping CA investors invest in states like GA, NC, FL, TX, AL, and (believe it or not) CA. Over the past 5 years OH, MO, TN, and IL have also been popular. It really all depends on what you're looking for. I'll drop my "Markets Matrix" photo below.
The point of the Matrix is meant to describe "WHY are investors choosing X market?". This isn't meant to be an all-encompassing final verdict. But really just feedback from what I've noticed when working with investors and PE funds.
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Hamp Lee IIIPro Member
Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
3y
@Andres Murillo - very nice and helpful!
Did you create this yourself?
0 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Andres Murillo:

I'm helping CA investors invest in states like GA, NC, FL, TX, AL, and (believe it or not) CA. Over the past 5 years OH, MO, TN, and IL have also been popular. It really all depends on what you're looking for. I'll drop my "Markets Matrix" photo below.
The point of the Matrix is meant to describe "WHY are investors choosing X market?". This isn't meant to be an all-encompassing final verdict. But really just feedback from what I've noticed when working with investors and PE funds.

This is about correct in 2023. I guess in 2018 the picture is slightly different :)

One other way of illustrating this is create comparison chart based on ZHI.
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Andres Murillo
Real Estate Agent · Los Angeles, CA · Member since 2022 · 137 posts · 106 votes
3y
Quote from @Hamp Lee III:

@Andres Murillo - very nice and helpful!
Did you create this yourself?

Yes, I did. I just needed a way to capture all the feedback I was getting and figured this was the best way. I don't claim it to be a perfect tool, but it's been a great conversation starter for individual investors.
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Andres Murillo
Real Estate Agent · Los Angeles, CA · Member since 2022 · 137 posts · 106 votes
3y
Quote from @Carlos Ptriawan:

Quote from @Andres Murillo:

I'm helping CA investors invest in states like GA, NC, FL, TX, AL, and (believe it or not) CA. Over the past 5 years OH, MO, TN, and IL have also been popular. It really all depends on what you're looking for. I'll drop my "Markets Matrix" photo below.

The point of the Matrix is meant to describe "WHY are investors choosing X market?". This isn't meant to be an all-encompassing final verdict. But really just feedback from what I've noticed when working with investors and PE funds.

This is about correct in 2023. I guess in 2018 the picture is slightly different :)

One other way of illustrating this is create comparison chart based on ZHI.

I try to update it as I find trends in the feedback.
0 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Andres Murillo:

Quote from @Carlos Ptriawan:

Quote from @Andres Murillo:

I'm helping CA investors invest in states like GA, NC, FL, TX, AL, and (believe it or not) CA. Over the past 5 years OH, MO, TN, and IL have also been popular. It really all depends on what you're looking for. I'll drop my "Markets Matrix" photo below.

The point of the Matrix is meant to describe "WHY are investors choosing X market?". This isn't meant to be an all-encompassing final verdict. But really just feedback from what I've noticed when working with investors and PE funds.

This is about correct in 2023. I guess in 2018 the picture is slightly different :)

One other way of illustrating this is create comparison chart based on ZHI.

I try to update it as I find trends in the feedback.

You could make this process automatic as well, using input data from Zillow/Redfin/Crexi and graph it using Tableau.
Overall this is one of the best representation of actual condition. Thank you.
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Monico LorenzanaPro Member
OP
New to Real Estate · Chino, CA · Member since 2022 · 24 posts · 7 votes
3y
Quote from @Andres Murillo:

I'm helping CA investors invest in states like GA, NC, FL, TX, AL, and (believe it or not) CA. Over the past 5 years OH, MO, TN, and IL have also been popular. It really all depends on what you're looking for. I'll drop my "Markets Matrix" photo below.
The point of the Matrix is meant to describe "WHY are investors choosing X market?". This isn't meant to be an all-encompassing final verdict. But really just feedback from what I've noticed when working with investors and PE funds.

This helps put things in perspective. Very helpful. Thank you. I've heard a lot about Tampa, Atlanta, and San Antonio. You graph makes understanding the differences easier.
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