First time home buyer
Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.
@Jerell Edmonds Obviously no "correct" answer here. My 2 cents: start close. Unless you have a team of partners on the ground in OH, that's a long ways from RI to run into troubles. Every market will have deals (maybe not on the MLS) if you dig deep and make connections with people. You'll scale up quicker (in both properties and funds) if you find a great deal close to home to get rolling.
Quote from @Jerell Edmonds:
Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.
Hey @Jerell Edmonds Welcome to the forums. And to eco what @Tim Johnson said there is no right or wrong its really what you are ok and comfortable with. The benefit to investing out of state, is that it forces you to develop the systems and the mindset from day one that you are not going to be physically going to these properties and fixing things, you'll be training yourself in "leadership" type tasks and systems and that will make it easier in my mind to scale. That does not mean you should not come to OH and visit your investments or visit the areas you are investing in specifically, but it does keep you away from the day to day a bit.
Other than that I'd say that OH in general and the Mid-west are going to be lower priced markets than what you see in RI and New England, but of course within OH there are many different markets and plays you can make. Just a note to what you said above, if Cashflow is not the most important thing to you, I'd look closer to central OH for your OH market aka Cbus. Toledo and Cleveland are not appreciating or growing as fast as central OH. So you can still get some cashflow, not as much as in Cleveland and Toledo, but you'll get way more appreciation and economic growth in the long run. Just my two cents as a local here.
and if you have any specific questions or want to look deeper at some deals in the OH market let me know I'm happy to connect.
-
Real Estate Agent OHIO (#2021002058)
- 614-362-2231
- [email protected]
Quote from @Jerell Edmonds:
Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.
It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.
As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.
@Jerell Edmonds I think you are being very wise in considering the Toledo market. I know several investors who have scaled here very quickly. Our market is definitely overlooked given the hotspots of Cleveland and Columbus. We have a great market in terms of long term renters and stability. Rents keep growing here too because of the lack of supply.
With this being said, I don't think there is anything wrong starting where you are if you have the teams in place. I would be more than happy to help you get your team here though is you decide to go the Toledo route.
People have given some great ideas above. All I have to add is specific to Cleveland. With 80k to work with, you can get a good down payment with some to spare here. Another personal recommendation is to look more at SFRs rather than small-multifamilies at the moment. Inventory is tight for them and they are in high demand here. I'm finding better deals in SFRs.
Hello! My quick view from 1000 miles away and not knowing your situation at all :)
For me it comes down to the Math.
If you buy out of state even in a lower price you will have to put down at least 20% to 25% and if you buy where you live you could buy a primary home for 3.5% to 5% down.
The difference : 20% on $200k : $40k plus closing costs And 5% on $400k : is $20k plus closing costs which is much lower for a more expensive asset. (Or to control more money with leverage or a loan).
If you don’t own a home yet: this is a no brainer in my book. If you own a home already, rent it out and buy another primary home.
We first bought a condo, then a SFH and next another SFH at 5% down again - with a higher price.
You know the area, you know the demographics and economics. You will can meet your core team members face to face and get a sense of what you will need once you go out of state if you ever do!
There’s a lot more of course: Rent to price ratios, prices, etc etc
Let me know if you have any questions and if you need referrals to Realtors or Lenders anywhere!
You could start in your town or in your state, get the hand of it, build some equity and force some equity by renovating or additions, ADU's and then move the equity to lower price point areas.
For example: I’m in CA : where prices are between $600k and $800k : buying at 5% down payments still make sense! Appreciation at 5% per year will be around $35k per year and loan pay down about $20k to $25k per year: so in theory, in 5 years I could have at least $200k of equity to deploy in for example: Ohio and buy 1 or 2 homes cash for cash flow for 3 to 4 houses with 25% down.
Build your strategy and plan first and then make a decision and get started!
There are a lot of solid markets in Ohio. Toledo, Dayton and Cleveland will be more for cash flow but Cincinnati and Columbus will be best for capturing growth and appreciation. It depends on your strategy but like others said, there are no right or wrong answers. @Jerell Edmonds
Quote from @Brandon Goldsmith:
There are a lot of solid markets in Ohio. Toledo, Dayton and Cleveland will be more for cash flow but Cincinnati and Columbus will be best for capturing growth and appreciation. It depends on your strategy but like others said, there are no right or wrong answers. @Jerell Edmonds
Yeah I've been seeing that just makes more sense to build over there because RI is so high. If my numbers are right I could cash flow a decent rate but my main priority is to just get started as of now.
Quote from @Shane Kelly:
People have given some great ideas above. All I have to add is specific to Cleveland. With 80k to work with, you can get a good down payment with some to spare here. Another personal recommendation is to look more at SFRs rather than small-multifamilies at the moment. Inventory is tight for them and they are in high demand here. I'm finding better deals in SFRs.
Thank you so much I will definitely keep that in mind! If you don't mind me asking what areas do you invest out over there ?
Quote from @Remington Lyman:
Quote from @Jerell Edmonds:
Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.
It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.
As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.
Yes I was reading up on that! I definitely want to build relationships down over in OH. That's Amazing advice. Are you investing A class areas or B&C areas?
Quote from @Sebastian Marroquin:
Hello! My quick view from 1000 miles away and not knowing your situation at all :)
For me it comes down to the Math.
If you buy out of state even in a lower price you will have to put down at least 20% to 25% and if you buy where you live you could buy a primary home for 3.5% to 5% down.
The difference : 20% on $200k : $40k plus closing costs And 5% on $400k : is $20k plus closing costs which is much lower for a more expensive asset. (Or to control more money with leverage or a loan).
If you don’t own a home yet: this is a no brainer in my book. If you own a home already, rent it out and buy another primary home.
We first bought a condo, then a SFH and next another SFH at 5% down again - with a higher price.
You know the area, you know the demographics and economics. You will can meet your core team members face to face and get a sense of what you will need once you go out of state if you ever do!
There’s a lot more of course: Rent to price ratios, prices, etc etc
Let me know if you have any questions and if you need referrals to Realtors or Lenders anywhere!
You could start in your town or in your state, get the hand of it, build some equity and force some equity by renovating or additions, ADU's and then move the equity to lower price point areas.
For example: I’m in CA : where prices are between $600k and $800k : buying at 5% down payments still make sense! Appreciation at 5% per year will be around $35k per year and loan pay down about $20k to $25k per year: so in theory, in 5 years I could have at least $200k of equity to deploy in for example: Ohio and buy 1 or 2 homes cash for cash flow for 3 to 4 houses with 25% down.
Build your strategy and plan first and then make a decision and get started!
So true my older Brother is a real estate agent down over here and he keeps telling me the same thing buy your first home down here. But some MF down here are just so pricey for my liking and I get they look at it like a business but we would need double the funding because we want to go with 20% down so we don't have to live in it. An I tell my self my first home would be a rental . I do have a plan in place we just might have to go over it some more . But you're right makes more sense to invest in a area you already know. Ill have to keep looking but doesn't mean I cant get one here an do they conventional out in OH . Its all so exciting the thrill of it all! :) thank you for answering greatly appreciated!
Quote from @Stephen Brown:That would be amazing I'd love to connect an build over there because I feel like I could scale much quicker up there.
@Jerell Edmonds I think you are being very wise in considering the Toledo market. I know several investors who have scaled here very quickly. Our market is definitely overlooked given the hotspots of Cleveland and Columbus. We have a great market in terms of long term renters and stability. Rents keep growing here too because of the lack of supply.
With this being said, I don't think there is anything wrong starting where you are if you have the teams in place. I would be more than happy to help you get your team here though is you decide to go the Toledo route.
Quote from @Tim Johnson:
@Jerell Edmonds Obviously no "correct" answer here. My 2 cents: start close. Unless you have a team of partners on the ground in OH, that's a long ways from RI to run into troubles. Every market will have deals (maybe not on the MLS) if you dig deep and make connections with people. You'll scale up quicker (in both properties and funds) if you find a great deal close to home to get rolling.
Thank you that is true I might have to look for my first one in my own area just to get the hang of things. My biggest issue was just living in because thats going to take some profit but gives me time to save as well.
Quote from @Michael K Gallagher:
Quote from @Jerell Edmonds:
Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.
Hey @Jerell Edmonds Welcome to the forums. And to eco what @Tim Johnson said there is no right or wrong its really what you are ok and comfortable with. The benefit to investing out of state, is that it forces you to develop the systems and the mindset from day one that you are not going to be physically going to these properties and fixing things, you'll be training yourself in "leadership" type tasks and systems and that will make it easier in my mind to scale. That does not mean you should not come to OH and visit your investments or visit the areas you are investing in specifically, but it does keep you away from the day to day a bit.
Other than that I'd say that OH in general and the Mid-west are going to be lower priced markets than what you see in RI and New England, but of course within OH there are many different markets and plays you can make. Just a note to what you said above, if Cashflow is not the most important thing to you, I'd look closer to central OH for your OH market aka Cbus. Toledo and Cleveland are not appreciating or growing as fast as central OH. So you can still get some cashflow, not as much as in Cleveland and Toledo, but you'll get way more appreciation and economic growth in the long run. Just my two cents as a local here.
and if you have any specific questions or want to look deeper at some deals in the OH market let me know I'm happy to connect.
Man thank you so much for that tip! I Shouldn't say cash flow isn't important for us because it is but we're more focus on building our portfolio up an leaving our w2 jobs. Most definitely we would come down to check area an property. For sure have to do more research on out of state makes me nervous thinking about it but life is a chance anyway so I'm looking forward to this chapter.
Hey Jerell!
Lots of good information here. I typically tell my new investors that in addition to the other suggestions offered here, you should find a way to meet as many people as you can who are already investing in the city you want to invest in. The experiences they have already had can save you thousands of dollars and countless hours of time figuring things out. Become a student of not just the real estate and the neighborhoods, but what's happening in that community that could impact your business. Who are the people you can call to get completely objective information? Find some local investor communities to participate in, get in on some masterminds, meet the people who have already achieved the level of success you are looking for. No need to start completely from scratch reinventing the wheel.
Let me know if I can point you in the direction of some groups or resources that focus on Cleveland investing or help in any way.
My best to you!
-
Real Estate Agent
- The Boardwalk Group
- [email protected]
Quote from @Sebastian Marroquin:
Hello! My quick view from 1000 miles away and not knowing your situation at all :)
For me it comes down to the Math.
If you buy out of state even in a lower price you will have to put down at least 20% to 25% and if you buy where you live you could buy a primary home for 3.5% to 5% down.
The difference : 20% on $200k : $40k plus closing costs And 5% on $400k : is $20k plus closing costs which is much lower for a more expensive asset. (Or to control more money with leverage or a loan).
If you don’t own a home yet: this is a no brainer in my book. If you own a home already, rent it out and buy another primary home.
We first bought a condo, then a SFH and next another SFH at 5% down again - with a higher price.
You know the area, you know the demographics and economics. You will can meet your core team members face to face and get a sense of what you will need once you go out of state if you ever do!
There’s a lot more of course: Rent to price ratios, prices, etc etc
Let me know if you have any questions and if you need referrals to Realtors or Lenders anywhere!
You could start in your town or in your state, get the hand of it, build some equity and force some equity by renovating or additions, ADU's and then move the equity to lower price point areas.
For example: I’m in CA : where prices are between $600k and $800k : buying at 5% down payments still make sense! Appreciation at 5% per year will be around $35k per year and loan pay down about $20k to $25k per year: so in theory, in 5 years I could have at least $200k of equity to deploy in for example: Ohio and buy 1 or 2 homes cash for cash flow for 3 to 4 houses with 25% down.
Build your strategy and plan first and then make a decision and get started!
Many lenders will not allow you to buy a home and continually state you are going to live there. Not only is this mortgage occupancy fraud, it is a federal offense and you can go to prison as well as pay hefty fines for that. Yes they do check occupancy and even if the bank suspects you are not going to live there they will not approve the loan. The lenders have checks and balances in their underwriting to ensure people are not committing mortgage occupancy fraud. There has to be a good reason why you are moving as most people don't move from a single family to a multi family or if you currently live in a single family home you would have to explain why you are moving to a smaller home as you wouldn't be buying a larger home to rent. If you buy a larger home to live in and want to rent your current home because it is smaller than the home you are buying that is fine however some loans require occupancy. You would have to check with your lender. Most lenders are ok with you renting after a year. Insurance would have to be updated to a fire policy as well. Just sayin.
Quote from @Jerell Edmonds:
Quote from @Remington Lyman:
Quote from @Jerell Edmonds:
Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.
It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.
As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.Yes I was reading up on that! I definitely want to build relationships down over in OH. That's Amazing advice. Are you investing A class areas or B&C areas?
I invest in A, B, and C areas
Quote from @Jerell Edmonds:
Quote from @Shane Kelly:
People have given some great ideas above. All I have to add is specific to Cleveland. With 80k to work with, you can get a good down payment with some to spare here. Another personal recommendation is to look more at SFRs rather than small-multifamilies at the moment. Inventory is tight for them and they are in high demand here. I'm finding better deals in SFRs.
Thank you so much I will definitely keep that in mind! If you don't mind me asking what areas do you invest out over there ?
The "Heights belt" of suburbs on the East side. University Heights, Shaker Heights, Warrensville Heights, and Maple Heights.
Hi Jerell, I would love to connect and chat about investing in Cleveland Multi family. I own 12 units in the area and would love to discuss how you can get started. Feel free to reach out.
Quote from @Sylvia H.:
Quote from @Sebastian Marroquin:
Hello! My quick view from 1000 miles away and not knowing your situation at all :)
For me it comes down to the Math.
If you buy out of state even in a lower price you will have to put down at least 20% to 25% and if you buy where you live you could buy a primary home for 3.5% to 5% down.
The difference : 20% on $200k : $40k plus closing costs And 5% on $400k : is $20k plus closing costs which is much lower for a more expensive asset. (Or to control more money with leverage or a loan).
If you don’t own a home yet: this is a no brainer in my book. If you own a home already, rent it out and buy another primary home.
We first bought a condo, then a SFH and next another SFH at 5% down again - with a higher price.
You know the area, you know the demographics and economics. You will can meet your core team members face to face and get a sense of what you will need once you go out of state if you ever do!
There’s a lot more of course: Rent to price ratios, prices, etc etc
Let me know if you have any questions and if you need referrals to Realtors or Lenders anywhere!
You could start in your town or in your state, get the hand of it, build some equity and force some equity by renovating or additions, ADU's and then move the equity to lower price point areas.
For example: I’m in CA : where prices are between $600k and $800k : buying at 5% down payments still make sense! Appreciation at 5% per year will be around $35k per year and loan pay down about $20k to $25k per year: so in theory, in 5 years I could have at least $200k of equity to deploy in for example: Ohio and buy 1 or 2 homes cash for cash flow for 3 to 4 houses with 25% down.
Build your strategy and plan first and then make a decision and get started!
Many lenders will not allow you to buy a home and continually state you are going to live there. Not only is this mortgage occupancy fraud, it is a federal offense and you can go to prison as well as pay hefty fines for that. Yes they do check occupancy and even if the bank suspects you are not going to live there they will not approve the loan. The lenders have checks and balances in their underwriting to ensure people are not committing mortgage occupancy fraud. There has to be a good reason why you are moving as most people don't move from a single family to a multi family or if you currently live in a single family home you would have to explain why you are moving to a smaller home as you wouldn't be buying a larger home to rent. If you buy a larger home to live in and want to rent your current home because it is smaller than the home you are buying that is fine however some loans require occupancy. You would have to check with your lender. Most lenders are ok with you renting after a year. Insurance would have to be updated to a fire policy as well. Just sayin.
:) Thank you for your message, but I think you miss-read my message all together. You are right in that if you do things wrong, you will be committing fraud and going to jail. I in no way did I imply or suggest to do that. Please read my message to him again for clarity.
I also did not write every detail possible of how to do it correctly as that would have been a book or at the very least a chapter in a book. I think your heart is in the right place though and I truly believe that you are intending to help instead of the contrary.
You have to have a "compelling" reason to buy another or a second or third primary home, yes. This is why I said, you could buy a smaller Condo first, live in it like the lending laws suggests for 1 year or more, then rent that one out and buy your second investment (ie a single family home) that has more privacy than a condo and or is bigger. :)
You could also strategize and buy a duplex first, live in it for 1 year, then rent it out, then buy a condo, then a SFH. There's many ways of doing this, and please check around in the forums, with your local Realtor, Lender, investor or attorney for more info.
The strategies are there for the taking. Of course, do things within the law… talk to your CPA or tax professional, your attorney, your lender and your Realtor! If you want to have a chat, please reach out.
Another thing to consider is how your mortgage lender will view your purchase and what calculations they will use for your debt to income ratio. As a mortgage lender myself, the way that we calculate investment properties that are rented out has to do with if you have a primary housing expense which then lets us "offset" the future mortgage with the future rental income. In most cases, we are able to offset the future mortgage with 75% of the current rental income (the other 25% is a mandatory "vacancy factor").
Let's say your future mortgage payment was going to be $1500, and rental income every month was $2500, we would calculate the amount we could offset by multiplying the rental income by 75% and then using that $1875 to completely offset the future mortgage.
However, if you do not have a primary housing expense (i.e. a mortgage on your primary residence), then we cannot offset the future mortgage payment, therefore causing an issue in the debt-to-income ratio of some borrowers.
Therefore, I am a huge advocate of buying your primary residence and getting into a comfortable mortgage before getting into real estate investing. Buying your primary residence allows you to gain experience in the regular ins and outs of owning a home. Then, when you are comfortable with that, purchase your investment property close by! By staying in your local market (or within an hour or so), you will be able to control a lot of the expenses by doing basic maintenance, property management, and bookkeeping yourself. This will allow you to become familiar with how to be a good landlord instead of having to build up an entire team of trusted individuals (realtor, handyman, contractor, property manager etc.), AND do investment bookkeeping and records, AND try to minimize expenses in an unfamiliar market. Get down the basics first so that you do not squander your hard earned money because you were unprepared for it!
If you need any help with the property management portion in Ohio (I have 6 properties in Cleveland and just outside of Cincinnati), or have any questions regarding mortgages (I am also a mortgage lender), let me know! I'm happy to help.
Quote from @Jerell Edmonds:
Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.
Looking outside of your own back yard is a great way to get started. Many investors from some of the more expensive markets have been trending in this direction. My company has seen a lot of demand from out of state investors recently. We are located in Clarksville, TN (where cash flow meets appreciation) and we have a really resilient and stable/consistent market. Let me know if you'd like to connect!
Cheers!
Quote from @John Williams:
Quote from @Jerell Edmonds:
Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.
Looking outside of your own back yard is a great way to get started. Many investors from some of the more expensive markets have been trending in this direction. My company has seen a lot of demand from out of state investors recently. We are located in Clarksville, TN (where cash flow meets appreciation) and we have a really resilient and stable/consistent market. Let me know if you'd like to connect!
Cheers!
I would def love to connect!