Anyone doing or wanting to do out of state investing?
New York, NY · Member since 2020 · 8 posts · 16 votes
Anyone doing or wanting to do out of state investing?
Most Popular Reply
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
3yHey Slim, I moved to Detroit from California in 2017. In 2019 I started building my rental portfolio with the goal of creating enough cashflow to move BACK to California. I managed to do it in ~2.5 years and now have 14-doors in Detroit. I'm back in CA now and loving it. If you or anyone is looking to get into the Detroit market I can help. My buddy runs a turnkey operation on the ground there and I have a great network.
65 Replies
- 3yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
im on the other end of the spectrum. working with people that invest in my market but dont live here
- Homeowner · MT · Member since 2022 · 17 posts · 16 votes3y
Hi! I am starting to look into out of state investing, but I was looking to see what other people's experiences have been. So Slim, how did you decide what state to buy in and did you visit or purchase site unseen? It looks to me like there are a lot of good deals out there...
- Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes3y
I have been investing out of state for 15 years now and love it. I am happy you took the plunge and see the fruits of your labor go further versus this over saturated and over regulated state we live in.
- Real Estate Agent · Fort Collins, CO · Member since 2023 · 171 posts · 116 votes3y
Hey Slim,
I’m not surprised you’re looking elsewhere to invest. What markets are you currently invested in? I and my team work with investors in Denver, Colorado, and if you’re interested in getting into the market here or just finding out more info feel free to send me a message.
Best of luck with your out of state investments 🤝🍀
- Hilo, HI · Member since 2017 · 5 posts · 6 votes3y
I live in Hawaii and just bought my first property in Detroit. I'm using a property management company to manage the rehab and place a tenant. Then either refinance and keep it or sell it as a turn key investment property. So far the property management company has taken a month to get me a rehab quote so I'll be looking for a different one soon unless they step up. Insurance rates about doubled recently in Detroit so I'm actually looking at Indianapolis now. My goal is to buy at least two properties per month this year.
- Rental Property Investor · Honolulu, HI · Member since 2019 · 179 posts · 91 votes3y
@Slim Geransar congrats on taking the leap! For me, it's been working out quite well. Now I'm expanding into other markets and asset classes.
@Iris Olivas have you done any research on what makes a "good" market to invest in? What I did was I created a criteria of what my ideal market to invest in would be, then did research to find which market(s) fit that criteria. If you get this concept down, it'll show up in other areas of investing too. Narrowing down your neighborhoods, finding a property, building a team, etc.
- 3yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Sequoia Heuer:
I live in Hawaii and just bought my first property in Detroit. I'm using a property management company to manage the rehab and place a tenant. Then either refinance and keep it or sell it as a turn key investment property. So far the property management company has taken a month to get me a rehab quote so I'll be looking for a different one soon unless they step up. Insurance rates about doubled recently in Detroit so I'm actually looking at Indianapolis now. My goal is to buy at least two properties per month this year.
Would love to connect and see if I can bring you any value
- Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes3y
Hey Slim, I moved to Detroit from California in 2017. In 2019 I started building my rental portfolio with the goal of creating enough cashflow to move BACK to California. I managed to do it in ~2.5 years and now have 14-doors in Detroit. I'm back in CA now and loving it. If you or anyone is looking to get into the Detroit market I can help. My buddy runs a turnkey operation on the ground there and I have a great network.
Hey Sequoia
I'm an investment real estate broker in Indianapolis. I'd be glad to help with any questions that you have about the market here. Just send me a message--or all of my contact info is on my Profile. Thanks!- 3yJared HottleBusiness MemberReal Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
I have not done it but as a real estate agent I have helped quite a few people. I think it is important to get an investor minded agent, do a video walk thru as well as an inspection. The more eyes the better. If you are planning on BRRRing it is good to get some contractors there as well.
Jared Hottle Real Estate59 Reviews - 3yBen RhodinBusiness MemberRealtor · Denver, CO · Member since 2020 · 338 posts · 331 votes
Hey @Slim Geransar! As with everyone, I invested out of state in order to find cheaper access to cash flow. I ended up in St.Louis, along with some good colleagues of mine. Personally, I spent about 3-4 months researching nearly every market in the nation, and finding each one had pros and cons. I finally gave myself a deadline as I was simply spinning my wheels trying to decide on a market when they were all hitting my goals. So within a week, I decided on St.Louis, and within a month I was closed on my first property out there.
I think that the key right there is everyone gets bogged down trying to find the "perfect" market, and the truth is the perfect market is wherever you can build your portfolio, and have a solid team in place. That is why I ultimately chose St.Louis, and I never thought about my properties after I bought them. If you keep chasing shiny objects, you'll simply delay your success.
Now, a few years later my ideals and plans have shifted. Being an investor and a broker out of Denver, I've decided to offload my out-of-state investments and move them back to Denver, as it provides me the freedom, and capability to get more creative and optimized with the properties creating better returns. Along with the appreciation Denver brings as well. So personally, I have shifted away from out-of-state investing for my personal portfolio, but that is also saying that if you are looking to invest out of state, Denver Metro and Colorado still have great deals to be made :
- 3yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods:
https://www.biggerpockets.com/...
(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!
Many OOS investors set themselves up for failure because they don't truly take the time to understand:
1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.
2) The Class of the PROPERTY they are buying - which is relative to the overall area.
3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.
4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.
5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.
6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.
7) That OOS property Class rankings are often different than the Class ranking of the local market they live.
8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.
9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.
10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.
11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?
Good luck with whatever you decide😊
Please send us any feedback via email, as we do not use the DM feature here.
Logical Property Management4.9460 Reviews - 3yRyan ThomsonBusiness MemberReal Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
@Drew Sygit and @Ben Rhodin great answers. @Slim I too am trying to find an out of state market that I like. I'm glad to hear your experience is going well.
The Assumable Guy544 Reviews - Member since 2022 · 2 posts · 2 votes3y
Quote from @Slim Geransar:
Hi, I live in NYC and obviously didn't make sense for me to invest here so I ended up buying in a state I have never visited (super scary to make that initial leap). I'm curious if there's anyone out there doing the same? What's your experience been like? For me, it's been amazing so far (apart from a few small issues).
I'm of the mind to invest where I visit. I live in Denver. We started investing in Tucson, AZ as my in-laws live there. Now when we go visit, we have the tax advantages and I meet with contractors and our real estate agent. It's a little tricky not being there, but glad we started.
- Rental Property Investor · Decatur, GA · Member since 2018 · 20 posts · 4 votes3y
Quote from @Steve Kontos:
I have been investing out of state for 15 years now and love it. I am happy you took the plunge and see the fruits of your labor go further versus this over saturated and over regulated state we live in.
Would like to connect with you. We been looking to connect with other investors doing deals out of state.
- Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes3y
Sure feel free to message me.
- Member since 2023 · 1 post · 0 votes3y
What Markets are you looking to invest in ? I'm in a little different situation where I am wholesaling in different Markets despite living in California. If you have any questions about the Market here I always here to help. Best of Luck!
- Investor · Salt Lake City, UT · Member since 2022 · 5 posts · 1 vote3y
@Travis B. I have been looking at the Detroit market to do out of state investments to cash flow GREEN. Crazy UT investors don't mind cash flowing red for years!!! I'm so confused and need green to be able to afford a primary home in UT.
I would love to get more info with your friend! And congratulations on being able to build up enough cash flow to live in CA!!!
Quote from @Travis Biziorek:
Hey Slim, I moved to Detroit from California in 2017. In 2019 I started building my rental portfolio with the goal of creating enough cashflow to move BACK to California. I managed to do it in ~2.5 years and now have 14-doors in Detroit. I'm back in CA now and loving it. If you or anyone is looking to get into the Detroit market I can help. My buddy runs a turnkey operation on the ground there and I have a great network.
- Member since 2022 · 11 posts · 7 votes3y
Quote from @Travis Biziorek:
Hey Slim, I moved to Detroit from California in 2017. In 2019 I started building my rental portfolio with the goal of creating enough cashflow to move BACK to California. I managed to do it in ~2.5 years and now have 14-doors in Detroit. I'm back in CA now and loving it. If you or anyone is looking to get into the Detroit market I can help. My buddy runs a turnkey operation on the ground there and I have a great network.
Hey Slim - I have been hunting a number of markets but struggling to find any that cashflow due to investor deposits (25%) and interest rates and then low buy to rent ratio's... I have been looking at NC, Jacksonville. I use quick math (0.86% of purchase price rather than the full 1% rule) but also do detailed analysis - I am obviously doing something wrong somewhere - welcome any guidance. I want to buy 2-3 properties in H1
- Investor · Salt Lake City, UT · Member since 2022 · 5 posts · 1 vote3yLove this!!!
Quote from @Drew Sygit:
Check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods:
https://www.biggerpockets.com/...
(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!
Many OOS investors set themselves up for failure because they don't truly take the time to understand:
1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.
2) The Class of the PROPERTY they are buying - which is relative to the overall area.
3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.
4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.
5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.
6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.
7) That OOS property Class rankings are often different than the Class ranking of the local market they live.
8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.
9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.
10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.
11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?
Good luck with whatever you decide😊
Please send us any feedback via email, as we do not use the DM feature here.
- Member since 2023 · 4 posts · 2 votes3y
I am currently a real estate agent out of California. I am looking to move out of the state of California before summer time starts. I am looking to find University towns where I can purchase multi-family housing where there are shortages. Does any one have any suggestions on where this location will be ? I am researching but it is always wonderful to see what others have to say!
Quote from @Slim Geransar:
Hi, I live in NYC and obviously didn't make sense for me to invest here so I ended up buying in a state I have never visited (super scary to make that initial leap). I'm curious if there's anyone out there doing the same? What's your experience been like? For me, it's been amazing so far (apart from a few small issues).
I have bought and sold 100s and 100s out of state and kept some as well, Its ALL about your team. All of my personals have been 20% or better net cap based on cash purchase's,
All the best
Quote from @Noah Thompson:
I am currently a real estate agent out of California. I am looking to move out of the state of California before summer time starts. I am looking to find University towns where I can purchase multi-family housing where there are shortages. Does any one have any suggestions on where this location will be ? I am researching but it is always wonderful to see what others have to say!
If you are a cash buyer Cleveland and the burbs are great,
Quote from @Damian Callaghan:
Quote from @Travis Biziorek:
Hey Slim, I moved to Detroit from California in 2017. In 2019 I started building my rental portfolio with the goal of creating enough cashflow to move BACK to California. I managed to do it in ~2.5 years and now have 14-doors in Detroit. I'm back in CA now and loving it. If you or anyone is looking to get into the Detroit market I can help. My buddy runs a turnkey operation on the ground there and I have a great network.
Hey Slim - I have been hunting a number of markets but struggling to find any that cashflow due to investor deposits (25%) and interest rates and then low buy to rent ratio's... I have been looking at NC, Jacksonville. I use quick math (0.86% of purchase price rather than the full 1% rule) but also do detailed analysis - I am obviously doing something wrong somewhere - welcome any guidance. I want to buy 2-3 properties in H1
Cleveland and the burbs of course. It has been the number 1 rental market for 10 years and still going very strong. I have seen 20% net caps for many years, based on cash purchase.
All the best
- Member since 2018 · 5 posts · 1 vote3y
@Ryan Lesley Hello, I am interested in Colorado and would love to connect
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