Out of State Investing

Q: I'm thinking about buying a townhouse in Florida as a rental? What are your thoughts on that?

A: I'm not an expert on the Florida rental market specific to the city you are looking in. However, why do you want to go there? Real estate is about location, location, location. It's also about supply and demand. In the Bay Area, supply is low and demand is high. It has always been and will contine to be. There are people moving to CA all the time, the weather is great, and there are high paying jobs in tech and biotech. If you live here and you are knowledgeable about the area you live in, buy nearby. I always suggest to put your money where you can see it. Florida is not a place you can see.

Q: But it's cheaper in Florida!
A: Yes but you get what you pay for. You can't get 2 times the rent with a house half the price. You still need to do your homework and do your math. There might be some great neighborhoods there no doubt, but to do the rental, you need to hire a property manager you can trust without you needed to go there more than 2 times a year.