This question is partly monetary, partly emotional...guess which I'm trying to weed out.
We lived in Austin for about 15 years, during which we picked up a few rental properties that we still own and are pulling a modest cash flow from. They haven't really gone up in value but are almost paid off.
Two years ago we moved to the SF Bay Area; I'm a native Californian and we are most likely here to stay. We just purchased a house here (ouch!) and have a bit of cash left over that we'd like to use to invest in more property.
My family (all Californians who never really understood why I stayed in Texas for so long) think that I should buy something in California. My gut tells me they're right, but it would be much easier to buy in Austin for a couple of reasons:
- I have a great property manager already in place, plus a good realtor and lender
- Housing is just plain easier to get into; I know I could find a good place for a modest down payment
- I know the neighborhoods.
On the plus side for buying something in California:
-The rental market is strong
-Towns in the central valley, where I'm more likely to find something affordable, are about 1-2 hours from where I live
-Property values are expected to go up considerably.
I know a lot of folks in the bay area are on this board, but I guess this would go for anyone who lives in a very expensive area. Love to hear your thoughts.