To rent or sell? - Looking in Novato and San Rafael CA

@Paloma Wodehouse

hello. i think a live-in flip or live-in BRRRR with a carpenter spouse could definitely work. you could also try to house hack. and - important point - house hacking is not about 'cash flow,' it's about building equity while reducing your net payment to your mortgage.  

so, could you buy a property with an ADU, live in the ADU, and rent out the main property? and then when you move out, get close to, or at, break even on rents?  there's a lifestyle component to that arrangement, obviously, so only you can decide if that's right for you and your family.  but it's worth looking into.

now, if you're asking - is there some kind of slam dunk, obvious, low risk, crypto-powered, high cash flow option that you're overlooking?  in my opinion - nope.  prices and interest rates are high EVERYWHERE - in every market.  as a CA investor, you might get advised to buy out of state, in a lower cost market - and that CAN of course work, but what we often see on BP (examples below) are posts from California / other HCOL area investors who (1) did not do proper due diligence, and/or (2) did not visit their chosen market or invest any time in building a team, and/or (3) did not have the right expectations about the first few years of ownership (those expectations being: they will "cash flow!" which they won't.  not at all.  have i mentioned that yet?)

you may know all this already, but i'll throw it out anyway.  it costs money to transact, it costs money to get rent ready, it costs money to lease out, it costs money to stabilize. so in a sense, there is cash flow in the first few years - it's your cash flowing into the property. again, we see so many forum posts from new investors who hit one speedbump - high closing costs, a big repair, a rough tenant turn - and it ruins everything for them.

here is an epic, thoughtful thread about different markets and the choices California investors have - lots of different perspectives and experiences in one thread, including spectacularly successful investors in different states:

Why markets with low appreciation grow your net worth twice as fast

and, here's my required reading list for you if you're even thinking of investing out of state:

Avoid Revolution Properties LLC at all costs

https://www.biggerpockets.com/forums/48/topics/1242392-rough...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

https://www.biggerpockets.com/forums/432/topics/1231840-sell...

https://www.biggerpockets.com/forums/311/topics/840134-memph...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

i would be happy to discuss any of this with you further.  i have nothing to sell and am on here to help new investors protect their time and capital.

hope this helps