Posted by Lor on January 29, 2002 at 16:55:01:
Hi Bobby, I used to buy out of state but had too many problems. I also live in the bay area and was attracted to out of state properties because they are so much cheaper than here. The problem is that they don’t have the appreciation we are used to and I had problems with my property managers. An example is 3 foreclosures I bought in Tampa. I bought them sight unseen working with a realtor by phone and fax. Turned out one house, though on a hill, was in a flood zone and I had to pay an extra $1,200 a year for insurance. The other houses fell under the homestead act and my taxes were double what I predicted.
Since you are new to real estate investing why not start looking around central CA and the foothills (gold country). You can still get good deals and people from cities and coastal towns seem to be migrating to these areas. If you work with an out of town realtor my advice is to find a realtor who is also a real estate investor - that way they will understand what you are doing. Good luck.