[quote=sdrealtor]Just so you know what I meant. You need to balance the lower costs in other areas with higher risks. Specifically, in a place like the Central Valley (AN recommended) unemployment is much higher, finding quality tenants tougher and the risk of extended vacancies greater. Throw in 6 to 10% for a property manager and the inability to make minor repairs yourself and what looks very appealing can change. Not to say there arent good opportunites there or any other place, its just important to do thorough due diligence and have your eyes wide open in whatever you decide.
As for me, I will take a lower return to have the comfort of being able to self manage and keep a close eye on my rentals. Its different for everyone.
There is no such thing as a free lunch[/quote]
I agree looking out of SD County is not a good option for everyone. Like another saying goes, high risk high return. Like all investments, one has to assess one’s circumstances and do all the due diligence before jumping in. I have connections in the Central Valley, which allow me to make such an investment. If I don’t have those connections, I wouldn’t have considered Central Valley, but I might consider Murrieta or Temecula, since I can drive there.
