I was thinking of buying rentals when prices were down 2008-2011 in Riverside, I’m soooo glad I instead bought rentals close in SD. Especially since I live in SD. SD’s rental market is very strong. I have had flood of interest the moment I put my properties on Craigslist for rent. So far great tenants that pay like clockwork.
If you are in good areas close to the coast you can afford to be very picky with tenant selection, b/c you have so many people that want to rent the place. But out in the boonies or in ghetto areas, beggars can’t be choosers. You have to take what you can get and that can be problems. Even worse dealing with those issues if you are a 2 hr drive from the property.
Some people can handle the rougher properties & do well with them (but they usually got a absolute steal buying them). But a lot of people fall into the trap of seeing the cash flow “on paper”. Problem is after a ton of vacancies and evictions that cash flow “on paper” can go up in smoke. Sometimes the better properties in better areas don’t look as good “on paper”, but get way better tenants, less headache, no vacancies, no missed rent, better appreciation.
