Why You Should ONLY Invest in Your Own Backyard

[AroundTheWorld]

I'm not sure what's worse (from the standpoint of being a guru):

- Not being able to make money in most of the areas he's invested;

- Continuing to invest in areas where he clearly can't make money.

or..

- listing these multi-state listings as a part of his success (so that he can sell his course and seminars, or course), when they actually are not!

 

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[Rickson9]

I own rentals in Phoenix, AZ and I'm in Canada. I haven't had a bad month yet, but I guess anything can happen. Thanks for the perspective!

Personally I don't see how I could be doing better by investing locally. Locally, properties are priced at $500+ per sq ft and selling for 25x gross rent. This means a $300,000 property will collect approximately $12,000 in rental income a year.

The properties I own in Phoenix, AZ are priced at less than $50 per sq ft and sell at less than 5x gross rent. For example, a 2 bed 2 bath condo in Phoenix, AZ in a B class area generates $700 a month in rent ($8,400 a year) but is priced at less than $40k.

Speaking for myself, there is no way that investing locally makes more sense.

Canada is still in a real estate bubble.