Thanks. I did check with some locals in Atlanta and got the same reaction. That’s what make out of state investment harder.
Do not buy remote management rental property. Rather, buy REITs. Remote management is tougher and you will not get better long term ROI unless you are a real estate professional.
The best is your method of buying SPY/QQQ using DCA. Keep it simple.
I like SPY/QQQ. only reason I’m thinking of investing out of state is to leverage with some cash flow.
Unless you live near by, long run, cost over run eat away your profit. Finally, you will be fed up and sell the property. The ROI will be low and will not be equal to SPY/QQQ. If you are RE professional, other management will not take advantage of your remoteness.
My realtor, 45 years RE experienced, told me not to buy any rental property beyond your driving distance. It is up to you to believe it or not, I trust her advice most.
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That is why after 45 years still a realtor 
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Here is the comparison between Keeping Bay area rental property vs. sell and invest in low risk fund. Both are coming very close as By keeping the property we are able to leverage 500k … (400K Loan and 80-90K selling cost) and get principal paydown. I have kept appreciation for Bay area home at 3% annually. Assuming its very conservative over 15 years. Also any cash flow that we get I’m negating that with capex and other expenses. We should have some left over but not taking that in consideration. Am I missing something in my calculation.
Home appreciation @3 % annual .
Value of home after 15 years - 2.025M .
Exit - 2,025,000 - 396,000 (tax 1.2M gain @33%) - 100,000 (selling cost) - 150,000 (loan) = 1,380,000
Invest current 800K exit and compound it next 15 year.
@5% - 1,663,142 -
Exit - 1,663,142 - 284,000 (33% capital gain tax) = 1,378,305
@7% - 2,207,225
Exit - 2,207,225 - (33% tax) = 1,742,840
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You forgot the rental income
Yes. current PITI is $3200 vs expected rent is $4000. To keep the calculation simple I totally discounted $800 difference.
Don’t hate… 
What if you don’t sell after 15 years? Assuming you pay off your mortgage after 15 years, your rental income after property tax (which will be low because of Prop 13) and insurance will be like your dividend yield.
Index will also pay you dividend so you can compare the yields of these two instruments. Also the rental income will be tax free because of depreciation deduction, until year 28.
Use a property manager. Complete hands off.
Statewide rent control is debated in Sacramento. You may need to take this into consideration.
Maybe sell it and buy 3 in Austin
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how bad is the rent control and how can it affect Landloard. If I rent my property at 4000 today and I’m able to increase rent by up to 5%… I can increase it by $200 per month every year. Which is still not bad. Am I missing something ?
For the last three years, I reduce rent. About 10% drop. YMMY.
In Bay area ? Is it due to the vacancy or some other reason ?
Yes, rent increase or decrease is not an issue, but bylaws of rent control are the issues. I can not explain any further. Good luck !
BA. Deteriorating profile of tenants.
Austin, recently rent starts to decrease as house prices increase because more landlord-investors buying forcing house prices to go up and the increase of rental supply reduces rent.
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You are right on spot!
I have here some fans that berated me for the Indexing, saying that how dare the financial institutions used call options, but now are blessing it.
I wouldn’t listen to them, one day you see them behind Tesla, next day Apple, then they change their tune from 401K to the indexing strategies.
Anybody playing with deferred “anything” is playing with matches while at the gas station. Taxes are going to be higher in the future, as you know it and saw it, we are borrowing money to give it to the rich, that famous redistribution of wealth is working soooooo fine! 
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