Out of state investor looking to get started (OH or IN)

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Out of state investor looking to get started (OH or IN)

Chrissi B.
Member since 2022 · 1 post · 7 votes

Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

- $100k or less purchase price
- Single family home
- Minimal/cosmetic repairs
- At least $200 in monthly cash flow

    I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

    I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.

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    Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    3y
    Quote from @Daniel Uchiumi:
    Quote from @Chrissi B.:

    Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

    My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

    - $100k or less purchase price
    - Single family home
    - Minimal/cosmetic repairs
    - At least $200 in monthly cash flow

      I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

      I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.

       Josh Janus is a great contact for Columbus. I'm close to closing my first deal with him in Cleveland @Joshua Janus hit him up!


       Thank you sir!

      [email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
      4Reply
      See this reply in the discussion

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      • Marshall Leipprandt
        Real Estate Agent · Miramar Beach, FL · Member since 2016 · 285 posts · 245 votes
        4y

        @Chrissi B. Welcome to BP! How have you settled on those three markets? Do you have any friends/connections in any of those markets? 

        With your desired price point, the Midwest is going to be your best bet. However, I would urge some caution in jumping into anything serious out-of-state unless you have been to the market personally, have a connection (friend, family, colleague) that you can trust to give you the scoop on those areas, and have some sort of team built out.

        A lot of the Midwest city markets can be highly appealing for us out-of-state investors, but the reality of what some of those markets have to offer in those price points may be less appealing than what you're envisioning. For example, the Midwest is FULL of old properties that will have high maintenance and cap-ex costs. It's not conjecture, its fact. Properties built in the early 1900s with deferred maintenance need more work. They'll look decent when you run the numbers in a spreadsheet to produce an estimated ROI, but they may not be the type of asset you want to own for the long-term. I am from Mid-Michigan and grew up near many of these cities so I know what they look like first hand.

        You'll have no shortage of people responding to you on BP saying why Cleveland, Detroit, Cincinnati, etc. are the best rental markets in the country, but just know that with every pro there is a con. More cash flow usually means you'll sacrifice appreciation and vice versa. I'm not saying there is no money to be made in some of those Midwest markets, just be wary because you're an out-of-state investor and you'll no doubt get the pitch from lots of folks on how they've never lost money in a deal and how finding good investments is a piece of cake. 

        My recommendation would be to find other other out-of-state investors who have experience investing out-of-state and have good systems in place. They'll probably give you a more honest answer as to which markets are attractive and which to avoid. The last thing you want to do is buy a place for $90K, but $8K into it, cash-flow $200/month for 5 years, then have to slap a new $10K roof on it or upgrade all of the appliances, then decide to sell it at $110K paying $5K-$6K commissions to Realtors and another $2K-$4K in closing costs and seller credits because it has not performed well. A lot of work to not benefit much after its all said and done. 

        Of course I am not trying to discourage you from beginning your investing career, but go into things with eyes wide open and don't blindly trust the first person who tells you why their market is the best in the country and that they have a "bulletproof" strategy. If that's the case, they're likely trying to just sell you something.

        2Reply
      • Nathan GesnerBusiness Member
        Moderator
        Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
        4y
        Quote from @Chrissi B.:

        Welcome to the BiggerPockets forums!

        Go to NETWORK at the top of your screen and you can search for agents, property managers, other investors and investment groups in a particular area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.

        The DIY Landlord Book4.7245 Reviews
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      • Sam McCormackBusiness Member
        Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 835 votes
        4y

        @Chrissi B.

        Hi Chrissi, I sent you a message so we can connect and talk about investing in Cincinnati!

        [email protected]859-443-4952
        Sam McCormack Realtor
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        0Reply
      • Bob S.
        Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
        4y
        Quote from @Chrissi B.:

        Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

        My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

        - $100k or less purchase price
        - Single family home
        - Minimal/cosmetic repairs
        - At least $200 in monthly cash flow

          I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

          I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.


           Hello, 200 a month, you can get triple or more with cash purchases in other markets. Just connect with those that provide turn key properties 1005 hands off 

          All the best

          BTW the last thing you need is an agent, this is not where the deals are 

          0Reply
        • Austin McClainBusiness Member
          Real Estate Agent · OH · Member since 2021 · 350 posts · 603 votes
          4y

          $100k or less will be hard to find in Columbus. You can find that in Dayton or Cleveland Ohio.

          [email protected]614-710-4827
          2Reply
        • Remington LymanBusiness Member
          Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
          4y
          Quote from @Chrissi B.:

          Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

          My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

          - $100k or less purchase price
          - Single family home
          - Minimal/cosmetic repairs
          - At least $200 in monthly cash flow

            I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

            I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.


            Columbus, Ohio is a great market to pick up rental properties because of the lower home prices and demand from renters. JPMorgan Chase, Nationwide, Honda, L Brands, Huntington, and Amazon are just a few of the many companies that have thousands of jobs in the city.

            New Albany is home to several major data centers including ones operated by Amazon, Google and Facebook, whose parent company, Meta, announced plans in the spring to expand its New Albany campus.
            [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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          • Kerry Noble JrPro Member
            Investor · Indianapolis, IN · Member since 2018 · 3k+ posts · 1k+ votes
            4y

            Definitely open to connecting about IN.....to provide some insight

            0Reply
          • Daniel Uchiumi
            Investor · San Diego · Member since 2021 · 10 posts · 9 votes
            4y
            Quote from @Chrissi B.:

            Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

            My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

            - $100k or less purchase price
            - Single family home
            - Minimal/cosmetic repairs
            - At least $200 in monthly cash flow

              I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

              I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.


               Hi Chrissi, im in the same exact boat you are. New investor from socal, looking for out of state markets because ours is crazy, and i was looking at Ohio as well (cleveland and columbus). Reach out and maybe we can look for a networking team out there together

              1Reply
            • Slocomb Reed
              Real Estate Agent · Cincinnati, OH · Member since 2014 · 170 posts · 102 votes
              4y

              @Chrissi B. I'm mostly reiterating other responses here, but here's my take.

              You CAN find houses on-market under 100k in any of the cities you referenced, but this price point comes with a lot of operational difficulties. Cash flow will likely not be consistent, it'll be great in the good times and you'll be in the red pretty significantly with rough tenant turnovers and other likely issues.

              Advice: Make sure you have a quality property manager who agrees to take on the property you're interested in BEFORE you end your due diligence period. That way you at least know that you have a local professional who's got your back when times get tough.

              1Reply
            • James Wise
              Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
              4y
              Quote from @Chrissi B.:

              Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

              My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

              - $100k or less purchase price
              - Single family home
              - Minimal/cosmetic repairs
              - At least $200 in monthly cash flow

                I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

                I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.


                 Brahhhhh....You're looking at Ohio, but not in Cleveland? That's wild.

                0Reply
              • Steven Foster Wilson
                Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
                4y
                Quote from @James Wise:
                Quote from @Chrissi B.:

                Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

                My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

                - $100k or less purchase price
                - Single family home
                - Minimal/cosmetic repairs
                - At least $200 in monthly cash flow

                  I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

                  I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.


                   Brahhhhh....You're looking at Ohio, but not in Cleveland? That's wild.


                   I agree with James, I have been investing in Cleveland more and more. I would defiantly run some numbers for properties there. You will be mind blown on what you find. 

                  2Reply
                • Jamir Walton
                  San Diego, CA · Member since 2020 · 13 posts · 9 votes
                  4y

                  @James Wise Hi James, I’m looking at investing in Cleveland!

                  1Reply
                • Jamir Walton
                  San Diego, CA · Member since 2020 · 13 posts · 9 votes
                  4y

                  @Daniel Uchiumi @Chrissi Bernardo I am also a new investor in SoCal with similar investing criteria. I’d love to meet up some time.

                  1Reply
                • James Wise
                  Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
                  3y
                  Quote from @Jamir Walton:

                  @James Wise Hi James, I’m looking at investing in Cleveland!


                  1Reply
                • Daniel Uchiumi
                  Investor · San Diego · Member since 2021 · 10 posts · 9 votes
                  3y
                  Quote from @Chrissi B.:

                  Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

                  My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

                  - $100k or less purchase price
                  - Single family home
                  - Minimal/cosmetic repairs
                  - At least $200 in monthly cash flow

                    I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

                    I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.

                     Josh Janus is a great contact for Columbus. I'm close to closing my first deal with him in Cleveland @Joshua Janus hit him up!

                    3Reply
                  • Joshua JanusBusiness Member
                    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
                    3y
                    Quote from @Daniel Uchiumi:
                    Quote from @Chrissi B.:

                    Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

                    My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

                    - $100k or less purchase price
                    - Single family home
                    - Minimal/cosmetic repairs
                    - At least $200 in monthly cash flow

                      I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

                      I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.

                       Josh Janus is a great contact for Columbus. I'm close to closing my first deal with him in Cleveland @Joshua Janus hit him up!


                       Thank you sir!

                      [email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
                      4Reply
                    • Michael Orlando
                      Investor · Cleveland, OH · Member since 2019 · 147 posts · 156 votes
                      3y

                      @Chrissi B. You can definitely find some good stuff that meets that criteria in Cleveland! Cashflow and affordability are the reasons I buy here and keep adding to the portfolio. Lot's of opportunity. Columbus, cinci and indy are great markets, but definitely less affordable than Cleveland at this point so your cash on cash returns tend to drop. 

                      0Reply
                    • Scott AllenBusiness Member
                      Real Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
                      3y

                      @Chrissi B. Cleveland will be your cheapest option with that price range. You can find something in Columbus at that but it'll be tough. 

                      [email protected]614-698-1227
                      Reafco - Columbus, OH
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                    • Simon Ashbaugh
                      Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
                      3y
                      Quote from @Chrissi B.:

                      Hi BiggerPockets! I’m a new investor from SoCal looking to get started with investing out of state.

                      My chosen strategy is long term buy and hold focusing on cash flow and I am looking for:

                      - $100k or less purchase price
                      - Single family home
                      - Minimal/cosmetic repairs
                      - At least $200 in monthly cash flow

                        I am considering Columbus, Cincinnati or Indianapolis. Is what I’m looking for realistic for these markets? Are there other markets I should consider?

                        I’m also looking for agents in these areas — if you are one, or know somebody, please reach out. My intention is to make offers before the end of the year.


                        at 100k I doubt you'll find anything in Columbus, but you could find something in Cleveland and it will most likely cashflow more than 200/month

                        2Reply
                      • Patrick DruryBusiness Member
                        Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
                        3y

                        @Chrissi B.
                        I would recommend checking out the Cleveland OH market. It's a great cashflow market and you should be able to find what you are looking for. 

                        [email protected]614-412-4565
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                      • James Wise
                        Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
                        3y

                        I forgot to post this in my last post......Since Cleveland is on your radar you'll prolly wanna read The Ultimate Guide to Grading Cleveland Neighborhoods.

                        P.S.

                        Here is another Ric Flair meme.........There are not enough Ric Flair memes on BP for my liking.

                        0Reply
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