Getting out of California - Posted by Rick

Posted by Rick on September 08, 2004 at 14:22:04:

I’m hoping to get a little feedback on my plan.

I’m selling a rental SFR in the Los Angeles area (I own a few), and want to 1031 into an apartment building or NNN lease. However, prices in this area seem out of whack to me (which is one reason I’m selling a building).

I’m thinking of buying in the Portland, Oregon area simply because I’m familiar with it (grew up there) and still have family there and cap rates seem a couple percentage points better up there. I’d use a management company, and will have 500-750k to reinvest, so the building would be fairly small (I plan on putting 25-30% down).

I’m hoping for some expert thoughts on:

  1. Is there another geographic area I should be considering? - or can someone give me a good source to analyze growth potential in other areas?
  2. Is it reasonable to operate a small apartment building from such a distance or am I just setting myself up for a disaster?

Thank you!