In this episode I talk about why I prefer out-of-state real estate investing and why you should invest out-of-state! It really depends if you’re in an expensive or more affordable market (that allows for cash flowing properties). Let me know what you think in the comments below!
Why You Should INVEST OUT-OF-STATE 🏡 (Real Estate Investing Tips)
Transcription
Below is a transcription of the podcast. This transcription was taken from Otter.ai so it might not be completely accurate:
Sharon Tseung 0:02
This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design the best lives.Hey guys, it’s Sharon from digital nomad quest. And today we’re gonna talk about why I prefer out of state investing and maybe why you guys should consider it. Now if you guys are new to the channel, welcome. I’m all about teaching on how to build passive income become financially free and design your best lives. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified of my latest videos. So I posted this tic toc video about my four Plex purchase and my single family home purchase. They were both out of state. And I have to say I got a decent amount of hate comments, which was kind of surprising, but kind of not because when you have a lot of attention on a video, of course, there’s gonna be haters. But anyway, a lot of the comments are talking about how impossible it is in California and in New York and how it sucks to live in expensive city. It’s just funny because I’m like, Yo, I live in an expensive city, I live in the Bay Area, California, everyone was thinking I live somewhere extremely affordable because of my purchases. However, what I really did was invest at a state. And that’s what we’re going to talk about today and why I like out of state investing. So really, I see like advantages of having a high income and living in an expensive city as well as an advantage of living in a cheaper city, but making less income, like let’s talk about this, right. So first off, for example, if you lived in the Bay Area, California, the wages are high, you have to admit it, of course the housing is going to be high as well. And expenses are going to be high. But you can probably find ways to reduce those costs. What I find is the advantage of living in the Bay Area, California, for example, is that you’re going to have those Bay Area wages. And let’s talk about those numbers. According to a go baking rates article, the median household income of someone living in San Francisco is $96,265. That is a crazy amount. And it’s not even uncommon. If you’re in San Jose, which is also the Bay Area, the median household income is $96,662. Three months, it’s 122,000 $191. Now you look@census.gov and they say that for the US the median household income in 2018 is $61,937. So obviously the barre California has higher wages. If you move to from the Bay area to another state, it is likely that your income is going to get reduced someone living in an expensive city obviously has the advantage of those higher wages you have more money to play with. However your expenses are going to be super high. Everyone is complaining about the housing costs San Francisco’s housing costs are insane. One report from SF bass zumper recorded a site median of 30 $700 per month for a one bedroom apartment in San Francisco. Obviously, those housing costs are insane. But if you can find ways to reduce living expenses, for example, moving in with a bunch of roommates in a crappy apartment or living at home, something like that you can find ways to save a lot of money. All right, now let’s go into the advantage of someone living in a cheaper city. So what I think is awesome is if you live in a cheaper city, you understand your market, you live there, and you know it very well. So you can find deals in that market. And you can find stuff for cheap. That is very advantageous because a lot of people as you see it on my comments on this Tiktok video that everyone’s complaining about how expensive California is how expensive New York is and how they can’t invest in real estate because it’s so hard to get into that. But if you’re living somewhere cheaper, you can definitely find homes for under 50 K, even I bought a home under 50 K, and it’s doing well as a cash flowing property. So it’s totally possible in cheaper neighborhoods. And if you’re able to do that you can snowball your income by buying more of these properties. And then you’ll end up getting a good amount of cash flow where you can invest more and more and more and it just snowballs. That advantage of knowing your neighborhood is crucial because if I’m investing out of state, it is less likely that I will understand that this block is more dangerous than this other block or like which areas are just better in terms of appreciation or which one is more crime ridden. You just understand the market better when you live there. Obviously for me, I understand my city a lot better and then someone who isn’t here. So there are pros and cons to each side right. So why I like out of state investing is that I’m on the other side of you know, I don’t know these cheaper markets, but I would love to invest there because it’s so expensive to invest in the Bay Area. California. There are a lot of people who make a lot of money through real estate in Barea by fixing up homes and flipping homes or doing syndications and stuff like that. But getting a cash flowing property in the Bay Area is nearly impossible. You might need to look in Central California or things like that to find cash flowing properties but by investing out of state you’re essentially playing to your strengths of having the capital to Invest in these properties the more properties you collect like I mentioned the more you can snowball your income. So that’s essentially why I really like out of state investing it has allowed me to purchase five of my rental units and I hope to get more of them in the near future. If you guys like this video and agree with me or disagree with me, let me know in the comments below. I want to hear your guys’s thoughts do you guys invest out of state or do you guys like to invest where you live because I understand if you can invest where you live, I would definitely prefer that I would definitely prefer investing in the Bay Area because I know the market better but I’m just trying to play to my strengths. So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai
This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design the best lives.Hey guys, it’s Sharon from digital nomad quest. And today we’re gonna talk about why I prefer out of state investing and maybe why you guys should consider it. Now if you guys are new to the channel, welcome. I’m all about teaching on how to build passive income become financially free and design your best lives. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified of my latest videos. So I posted this tic toc video about my four Plex purchase and my single family home purchase. They were both out of state. And I have to say I got a decent amount of hate comments, which was kind of surprising, but kind of not because when you have a lot of attention on a video, of course, there’s gonna be haters. But anyway, a lot of the comments are talking about how impossible it is in California and in New York and how it sucks to live in expensive city. It’s just funny because I’m like, Yo, I live in an expensive city, I live in the Bay Area, California, everyone was thinking I live somewhere extremely affordable because of my purchases. However, what I really did was invest at a state. And that’s what we’re going to talk about today and why I like out of state investing. So really, I see like advantages of having a high income and living in an expensive city as well as an advantage of living in a cheaper city, but making less income, like let’s talk about this, right. So first off, for example, if you lived in the Bay Area, California, the wages are high, you have to admit it, of course the housing is going to be high as well. And expenses are going to be high. But you can probably find ways to reduce those costs. What I find is the advantage of living in the Bay Area, California, for example, is that you’re going to have those Bay Area wages. And let’s talk about those numbers. According to a go baking rates article, the median household income of someone living in San Francisco is $96,265. That is a crazy amount. And it’s not even uncommon. If you’re in San Jose, which is also the Bay Area, the median household income is $96,662. Three months, it’s 122,000 $191. Now you look@census.gov and they say that for the US the median household income in 2018 is $61,937. So obviously the barre California has higher wages. If you move to from the Bay area to another state, it is likely that your income is going to get reduced someone living in an expensive city obviously has the advantage of those higher wages you have more money to play with. However your expenses are going to be super high. Everyone is complaining about the housing costs San Francisco’s housing costs are insane. One report from SF bass zumper recorded a site median of 30 $700 per month for a one bedroom apartment in San Francisco. Obviously, those housing costs are insane. But if you can find ways to reduce living expenses, for example, moving in with a bunch of roommates in a crappy apartment or living at home, something like that you can find ways to save a lot of money. All right, now let’s go into the advantage of someone living in a cheaper city. So what I think is awesome is if you live in a cheaper city, you understand your market, you live there, and you know it very well. So you can find deals in that market. And you can find stuff for cheap. That is very advantageous because a lot of people as you see it on my comments on this Tiktok video that everyone’s complaining about how expensive California is how expensive New York is and how they can’t invest in real estate because it’s so hard to get into that. But if you’re living somewhere cheaper, you can definitely find homes for under 50 K, even I bought a home under 50 K, and it’s doing well as a cash flowing property. So it’s totally possible in cheaper neighborhoods. And if you’re able to do that you can snowball your income by buying more of these properties. And then you’ll end up getting a good amount of cash flow where you can invest more and more and more and it just snowballs. That advantage of knowing your neighborhood is crucial because if I’m investing out of state, it is less likely that I will understand that this block is more dangerous than this other block or like which areas are just better in terms of appreciation or which one is more crime ridden. You just understand the market better when you live there. Obviously for me, I understand my city a lot better and then someone who isn’t here. So there are pros and cons to each side right. So why I like out of state investing is that I’m on the other side of you know, I don’t know these cheaper markets, but I would love to invest there because it’s so expensive to invest in the Bay Area. California. There are a lot of people who make a lot of money through real estate in Barea by fixing up homes and flipping homes or doing syndications and stuff like that. But getting a cash flowing property in the Bay Area is nearly impossible. You might need to look in Central California or things like that to find cash flowing properties but by investing out of state you’re essentially playing to your strengths of having the capital to Invest in these properties the more properties you collect like I mentioned the more you can snowball your income. So that’s essentially why I really like out of state investing it has allowed me to purchase five of my rental units and I hope to get more of them in the near future. If you guys like this video and agree with me or disagree with me, let me know in the comments below. I want to hear your guys’s thoughts do you guys invest out of state or do you guys like to invest where you live because I understand if you can invest where you live, I would definitely prefer that I would definitely prefer investing in the Bay Area because I know the market better but I’m just trying to play to my strengths. So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai
