Where do you invest out of state and why?

14 Replies

How do I decide what state to invest in?

I am very flexible and love the human race. I do not care if it is in a city or suburban venue. My only real criteria's are at this time. 1. There needs to be a real opportunity based on the AVG metrics for house flipping in the area. 2. A location that bullets are not flying.  I am a contractor and very familiar with construction and I seem not to have great difficulty finding great sub lic contractors when needed. 

Although I have invested out of state, it was mostly due to circumstances rather than intentions. Fla PA NJ.   I would like to keep investing here in NJ in real estate as opportunities allow and I build up my partnerships. (I also have interests in self running businesses here in NJ so I can take the somewhat leap but have reasons to return occasionally) but as the children have grown. I really want to venture out. Beyond the states listed. I have been fortunate that I have seen many parts of the USA and I am thankful/grateful for all it is. 

I would like to start investing (SFH/Small mixed use flips only at this point) in other parts of the country. Living in (p/t or f/t) and experiencing these areas as I do so. My intentions would be to flip in a location (do 6 or more flips) for 1 yr then move on ( I would like to keep doing this for at least the next 15 years) . I have my own systems/methods/metrics/algorithms down pretty good and I make money with them. *Not home runs but I hit plenty of singles and doubles.....

I am not a millionaire.. (meaning I do not have a million dollars in singles in my mattress) but I have access to it. I am conservative by nature although many think I take to many risks (again relative term).

So where do you invest outside your home state and why?

Detroit hit an all time low, but now investors from all over the world are buying properties for pennies on the dollar. The midtown and downtown areas are promising. New stadium and district opening 2017. Over 1300 new jobs, lots of people moving here. Please check my profile

Maria Fortner, Real Estate Agent in GA (#370583) and MI (#388605)
(404) 295-7877

@Maria Fortner

I will check out your profile.. Interesting story. A very good friend of mine owns a HUGE nationwide REO servicing company. I was fortunate enough to travel with him in areas where we boarded up 6 out of 10 homes on a street in areas of Detroit. Then we came back a week later to check on them and it looked like we were never there... Boards down, extension cords running from poles and boxes to homes , garden hoses running house to house furniture we removed replaced with other like stuff...... That said I did see some areas that looked like they were on the fence..... I think Detroit has a way to go yet. When I have my millions under the bed I might invest in areas like Detroit but for now I must pass.... I am not bashing Detroit and I wish Detroitees all the best it just is not a place for me...

@Account Closed Try the Detroit suburbs.  Keep in mind that Michigan (and the suburbs of Detroit) are not in Detroit.  I live, and invest, just outside of Detroit because I haven't found any markets that can compare in both flip profit, and return on your dollar for cash flow.

I'm not the only one.  Many have contacted me about it.  Many have contacted others on this site about it.  There's a lot of money to be had in safer areas (meaning safer for you money), than in Detroit.  Most of my investments are within 5 miles of the Detroit border...some are within a half mile, all are doing better than Detroit.

You're correct when you say "Detroit has a way to go".  If you have at least $1M to invest, and can control an entire neighborhood (as in at least 5 square miles), you can invest in Detroit comfortably, since you can control your market.  You are chasing "shiny objects of distraction" if you come in buying 1's, 2's, 3's, etc...as in small time buyers.  Too many problems.

However, like I said in the beginning, just outside of Detroit is a Goldmine.

@Joe Villeneuve

Can you offer specifics on towns and/or neighborhood names....... I will admit I would rather invest in SFH and Sm Mixed use storefronts with apts above (up to 3 stories and 3 apts) than entire neighborhoods. I do not have the stomach or more importantly the heart to invest on the grander scale you speak of....

Wally is correct. Check Oakland County cities like Southfield, Oak Park cross streets like 13 mile, Evergreen. Just throwing out some names. Best .

Maria Fortner, Real Estate Agent in GA (#370583) and MI (#388605)
(404) 295-7877

@Account Closed

I invest at a distance (DC is too expensive) and the first thing I look at is a city's financials. The financials will tell you detailed information about demographics, industries in the city, top employers, city's plans for use of funds, etc. etc. 

Find a city that is growing, has several industries, low unemployment, and then start contacting realtors to learn about the neighborhoods and potential deals. 

There are a ton of cities that are growing but aren't on someone's radar because "Detroit has cheap houses" and "NYC has appreciation" but if you are looking for solid cash flow, pick random cities and check out their financials and just see if there is any potential. The deals are sweet and plenty to be had.

@Account Closed I'm on the west side, so I'll throw out names a few cities I invest in, and why:

1 - Redford:  Exc. CF, and now appreciating at a faster rate than in the past, so good for flips, and even better for CF since you can refi to get cash out...and still CF at least 300/month with a PM in place (and no cash left in).

2 - Livonia:  You name it, you can do it, big time.

3 - Ypsilanti:  Same as above, but add both student and medical housing to the mix

4 - Garden City, Westland, Romulus, Wayne, the list goes on (I know I'm leaving a few out).

@Brandon Hall

AHHH you and I are on the same page.... Now my question is...Where are places like you describe and are you investing in any of them now?  In NJ we have similar like places you describe in DC as being to expensive and I agree. That is why I am seeking other distant locations. 

@Joe Villeneuve

Thanks I will definitely check them out for sure. Do any of the areas you speak of have main street districts that are up and coming where I might find a property to Rehab. Something along the lines of a mixed use property venue that would provide "Hip millennial aged housing".  Where modern rustic/ post beam living design is a possibility within a mixed use venue... I am big into teaching medical center locations with transportation options...

I like KC, Indy, Charlotte, and San Antonio. 

@Brandon Hall

Brandon, I like the way you think.  I seems there must be plenty of off the radar cities that offer good potential. 

Can you elaborate on what sources you are using to gather the financial data on cities you are exploring?  

Anthony Uva, Real Estate Agent in NJ (#1537742)
Originally posted by @Account Closed :

@Joe Villeneuve

Thanks I will definitely check them out for sure. Do any of the areas you speak of have main street districts that are up and coming where I might find a property to Rehab. Something along the lines of a mixed use property venue that would provide "Hip millennial aged housing".  Where modern rustic/ post beam living design is a possibility within a mixed use venue... I am big into teaching medical center locations with transportation options...

 Yes.  Ypsilanti, is s burb of Ann Arbor (they touch).  Both have large Universities as well as large teaching hospitals. 

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