Welcome to passive real estate investing, the show where busy people like you learn

how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Welcome back to another episode of Ask Marco, where I answer your investing related questions.

Today's question comes from Philip, and he says, hi, Marco, my name is Philip from Southern California.

I'm a millennial that is looking to create serious passive income through rentals.

What kind of properties and what city would you recommend to invest for first-timers in real estate investing like myself, especially in these strange times?

Thank you for providing us educational and informational content every week exclamation mark

Philip well Philip thank you for your question it's a good one there's a lot of

new investors out there some of them just call themselvesbies, but we all start with our first property and we all start at some place in the beginning.

And you living in Southern California are in an unfortunate circumstance being surrounded by very expensive

properties. So from that perspective it doesn't make sense to invest in your backyard.

However, good news, the good news is that this is a very large country made up of

over 500 metropolitan statistical areas or what is known as an MSA. And because of that you have the ability to invest in any of those markets, pretty much anytime you want. The question is what market and what are you looking for? And I think that's the basis of

your question here is you're asking what kind of properties and what kind of

market or city should I invest in and you're a first-time real estate investor so

you want to start off on the right footing and not make

mistakes or at least not costly mistakes in the beginning but you want to have success

and that's not hard to do just follow a simple formula and so here's the formula and it really is a

top-down approach think of it like a funnel in fact I talk about this in my ten rules of successful

real estate investing and I believe it's rule number six which is taking a top-down approach.

So what you want to do is not start with a property, although that is important, but you want to start with the market.

...