Should I Buy In A Less Expensive Area
l live in santa cruz ,ca properties are to the roof i want to buy units here they can be in the mills i researched in nevada i can buy 8 to 10 units for 224000 much easier to get a loan and down. is it better to buy out of the highly expensive areas for cash flow and easier on the pocket.and any other recommended areas 
PETERLOAN,
As for me....
I don't buy ANY REI unless I can be at their front door in....
Within 30 MINUTES
....as always,
GoodInvesting, Rocky
PETERLOAN,
Glad to meet you.
You are talking right down my alley now.
I picked up a Subject To house on Riverview Drive in Santa Cruz not to long ago. You don't need to list a price where you are just have the buyers put down their bid whoever has the highbid wins. This is how I sold the property. This was not a try and see if the bid process works deal it is just the way they do things where you are.
On the other hand being from Las Vegas, you can still find reasonably priced properties, yet a steady and rapid appreatiation value. Very difficult to lose on any property here. I would opt for Las Vegas where you can still get a bang for your buck.
Welcome on board this board, that why they call it Fabulous Las Vegas.
John $Cash$ Locke
2000rock,
I picked up $250K on the house, but I did have to drive for about 8 hours, I should compute what every hour I drove was worth to see whether it was worth it or not.
John $Cash$ Locke
IT's About NUTS -n- Bolts...
It's much easier to keep housing for lower to middle income families rented than stuff that is "to the roof". The carpenter, mechanic, schoolteacher, and other blue collar hero will always need a place to stay, and will (although sometimes late) always pay the rent, or offer to trim your trees for the $100 he is short. When he leaves, the ditch digger will move in.
With Higher-End units, when the executive loses his job and can't afford his BMW, he's out, and you're looking for a tennant that can afford the more expensive housing. It may sit.
More units, for less cost, run by a mgmnt co (no hassles) will spread your risk (which is smaller) over several units. Vegas baby, Vegas. You could get 3 times (or more) the amount of units, and afford to have them managed for the cost of one building where you're at.
Then jump on***Must have at least 5 friends to unlock*** or AmericaWest airlines for $60 and go visit your props and have some fun once a quarter.
My 2 bits. -MakoShark
You may want to look at it from a "return on investment" point of view. $500,000 may buy 1 or 2 homes in your area, or 8 or 10 of them in another area.
If the Net operating income is the same, then it won't make a difference (everything else considered equal).
They may or may not appreciate similarly.
Hibby is mostly right, I would add that if you only get 2 units for $500K, and one goes empty, you're carrying a bigger nut.
If you have 8-10 units and one goes empty, it's less of a monthly nut to cover. You can "afford" to have one go empty in an 8-10 unit building, but not in a 1-2 unit building. Food 4 thought. -MakoShark