Investing out of state is risky. YES and NO. So many investors ask me now where to find good returns on their real estate investment in Southern California. The honest truth is that it’s tough. I have found good investment properties in the central valley and in the IE, and many people followed my advice on this, but many of those ships have sailed. So to find an investment with CASH FLOW you may have to look out of state, especially if you have small start-up money for your investment (less than $100,000).
Risk is only there if you invest blindly. You need to do your due diligence, meaning make sure it’s a good area, acceptable crime levels, good rental pool, what the expenses of running the property would be, etc. etc. But that would be true of investing in your own neighborhood, where you have the luxury of driving to the property; that’s the only advantage. When investing in real estate, you should do all the thorough investigations steps called ‘due diligence,” whether it’s here at home or in another state.