Investing out of state.... so many options!
Most Popular Reply
Michelle BatemanPro Member
Realtor · Kansas City, MO · Member since 2019 · 108 posts · 52 votesAnalyze the market by looking at economic pull of the city, educational/recreational facilities, industrialization/commercialization, and medical facilities - these are just a few that will get you started! Cities like Kansas City and Cleveland are great markets to get into because the barrier to entry is still low enough to make it affordable and minimize risk while also having good upside potential. Since it's applicable here: I have a podcast where I interview investor friendly real estate agents across the nation - I recommend listening to the episodes in the Cleveland/Columbus areas and reaching out if you have any questions! I can also get you connected with a few great investor friendly agents in Cleveland and if you want to pursue or have questions about Kansas City I am happy to discuss this city as well. I may be biased, but there isn't a better city to invest in right now than Kansas City!
25 Replies
- 3yMichelle BatemanPro MemberRealtor · Kansas City, MO · Member since 2019 · 108 posts · 52 votes
Analyze the market by looking at economic pull of the city, educational/recreational facilities, industrialization/commercialization, and medical facilities - these are just a few that will get you started! Cities like Kansas City and Cleveland are great markets to get into because the barrier to entry is still low enough to make it affordable and minimize risk while also having good upside potential. Since it's applicable here: I have a podcast where I interview investor friendly real estate agents across the nation - I recommend listening to the episodes in the Cleveland/Columbus areas and reaching out if you have any questions! I can also get you connected with a few great investor friendly agents in Cleveland and if you want to pursue or have questions about Kansas City I am happy to discuss this city as well. I may be biased, but there isn't a better city to invest in right now than Kansas City!
- Real Estate Agent · Columbus, OH · Member since 2019 · 292 posts · 364 votes3y
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceHi Sam! When considering OOS investing, look for markets with strong economic fundamentals, such as job growth, population growth, and low unemployment rates. This ensures strong rental property demand in the region and increase the likelihood of property value appreciation as well.
One state you might want to consider is Ohio, which boasts thriving cities like Columbus, Cincinnati, and Cleveland. I personally focus my investments in Columbus, which has seen a significant increase in property values and is expected to continue this trend in the future. This is due in large part to major corporations like Intel, Honda, Nationwide Children's Hospital, and Wexner Medical Center investing heavily in the region and creating numerous job opportunities. Additionally, Ohio has favorable landlord-tenant laws that provide landlords with more rights and protections.
If you're interested, please let me know how I can assist you further. My team and I also have a good infrastructure in place for out of state investors (i.e. connections to contractors, property management companies, lenders etc.) I would be delighted to discuss this topic with you in greater detail! - Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes3y
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceYou can find a lot of great properties 200k and less in the midwest. Along, with affordability you want to look into population trends, economic development, education, and job growth to name a few. Columbus, OH would be a great place to begin your research since it has everything you want to see in an appreciating area
- 3yMin ZhangBusiness MemberReal Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceHey Sam! Welcome to Bigger Pockets!
I focus my investments in the Columbus area and have a network of property managers, general contractors, lenders etc. that I highly recommend. I usually consider investing with a bare minimum of 1% rule. This is what I usually look for in grade properties.This means that the security deposit cannot exceed 1% of the total rent for the rental period. For example, if the monthly rent is $1,000, the maximum security deposit that can be charged for a one-year lease is $1,500 (or 1.5 times the monthly rent)
If this is something you are looking for or you want to discuss with, please feel free to reach out to me! I can help you out! :)
- 3ySam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
Hi Sam, I believe Cincinnati has what you are looking for. You can find exactly what you are looking for in Cincinnati, even places like Columbus and Cleveland! Duplex, SFH, Cincy has it! Let me know if that interests you!
Sam McCormack Realtor - Investor · Boulder, CO · Member since 2017 · 304 posts · 347 votes3y
Hello @Sam Meade. Have you ever lived outside of the Seattle area? I'm old school and the biggest mistakes I see made are not knowing your market. This happens the most when people invest outside of a 60 minute drive from where they live. It's hard to know all the nuance of a market if you haven't spent a lot of time there. (IE I am watching a listing that advertised "earn $5k/month according to airdna". What they didn't know is the city that the home resides in only allows STR if it is your primary residence. And even then only 50% of the year. They are headed to foreclosure.) You get my drift.
Yes, you can find an agent but never trust the agent to tell you what is a good deal, etc. YOU need to know that. Then, you will also know how to vet an agent. Nothing against agents. I'm licensed. But these are big financial decisions. You want to know for sure you are making the right move.
- Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes3y
Hey Sam, most cash flow seeking folks seem to be either flocking to the Midwest or looking at the STR market.
Ohio has gotten hot these last couple years, so popular that it would personally give me pause. But it's likely worth exploring.
I invest in Detroit and have 12-doors there. It's still underrated but will probably be the new Cleveland/Columbus/Whatever in the coming years.
If you have some familiarity with the area you're going to be investing in that always helps. People will give you a bunch of metrics to look at but ultimately I think most folks gravitate to the market they somewhat know or have a connection to that also has numbers that make sense for their goals.
- Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes3yResearch Cleveland ohio, I think it has what youre looking for. Happy to send some references
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your advice - Member since 2022 · 5 posts · 1 vote3y
We have plenty of options here in Milwaukee, Racine, and Kenosha WI. Certain areas definitely are experiencing accelerated appreciation right now with new job opportunities and companies like Foxconn, Microsoft, and Amazon. With the right deal, you can certainly hit the 2% rule. If you are open to exploring how I as an agent/wholesaler can help feel free to give me a call!
- Columbus, OH · Member since 2023 · 427 posts · 254 votes3y
Look no further than the Midwest, an area where you can leverage 200k properly. I'm in Columbus, Ohio, and this market is primed for explosive growth, with massive drivers like Ohio State University, Intel, Nationwide, etc. Get in while you still can!
- Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes3y
Lot's of great input going on......I would add that first before you start looking at markets, you have to ask yourself "what are your goals?" what are you trying to do? Time frame and budget? These are questions that once answered will dial down your market strategy.
For example: if you want a nice B class property in KC for $120k after renovation value, thats NOT going to happen. The entry to get into good areas of KC is much higher now. Because of the steady growth and jobs there.
Also, are you wanting to buy (done for you) or do you want to buy distressed and hire the contractors? that is where the TIME piece comes in.
Go a bit deeper to define YOUR goals and YOUR strategy
Best of Luck!
- Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes3y
Hey Sam, you should check out Columbus. Your money will go very far, you'd be able to pick up a multifamily portfolio and start your cash flow. Not to mention Ohio is a landlord-friendly state.
- 3yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceHi Sam, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just a few weeks ago, I helped a client close on a deal getting them 20% cash on cash return. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes3y
Hi Sam, I am a huge fan of out of state investing and Long Distance Real Estate Investing was one of the first books I read before I built my portfolio in Cleveland. One of the strategies I used was working with a couple of turnkey companies and getting started in a mid-west market. I would love to connect and help out so feel free to reach out.
- 3yMarcus PerlebergPro MemberInvestor · Oconomowoc, WI · Member since 2020 · 21 posts · 6 votes
Quote from @Christian Anderson:
We have plenty of options here in Milwaukee, Racine, and Kenosha WI. Certain areas definitely are experiencing accelerated appreciation right now with new job opportunities and companies like Foxconn, Microsoft, and Amazon. With the right deal, you can certainly hit the 2% rule. If you are open to exploring how I as an agent/wholesaler can help feel free to give me a call!
What do you have in Waukesha, Brookfield, Racine, or Kenosha? Looking for off market, wholesale deals.
- Rental Property Investor · Russellville, AR · Member since 2014 · 688 posts · 509 votes3y
I would say start with David Green's book about Long-Distance Investing. On these forums you will get everyone trying to push their market simply because they are familiar with it and like it (which is fine), but you need to start with some self-education. Then you'll know what to look for and what questions to ask!
Good luck!
- Investor · Member since 2020 · 337 posts · 213 votes3y
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceNarrow down what you are looking for is it cash flow or is it appreciation? There are tons of markets out there in the MidWest where you can easily get a sfh/mfh for under 200k. Look into Cleveland, Columbus, KC, Detroit, Toledo as some of the markets to look into. Some are cash flow, some are appreciation, and some are a mix of both. After you come a to conclusion on what market you want to invest in, start looking for boots on the ground. If you don't have a team in place you will get burned OOS investing. Also, do your research on the neighborhoods in the area you will be investing in. Lots of folks will tell you stay away from lower class areas, but I would take that with a grain of salt to an extent. Lower class areas are very block by block, so work with your PM to gain the info you need. The PM is the most important boot for OOS investing. They will either make you or burn you really quickly.
- Real Estate Agent · Columbus, OH · Member since 2023 · 161 posts · 217 votes3y
Hi @Sam Meade,
Here is an article for the top 10 cash-flowing markets: https://www.biggerpockets.com/...
I personally live in Columbus and invest locally. If you are willing to sacrifice some of that cashflow for great long-term appreciation, I would also consider looking into Columbus. Let me know if you would like me to send some deals that you can analyze your way.
- 3yVicki X.Pro MemberInvestor · Member since 2022 · 186 posts · 155 votes
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceGiven your budget, mid west probably makes most sense.
There have been many good answers above. Here is my summary of major considerations in evaluating different markets:-
Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list
-
Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group
(Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).
-
Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!
-
Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+
-
Rental regulations as some States are more friendly to renters while some more friendly to investors
-
Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person
-
Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few
Some other considerations:
- Form an opinion about where you'd like to live in the future, and factor that in. Even if you work with PMs, being close to your properties will still be a plus.
- Also decide whether cash flow is most important for you, or good enough cash flow with less hassle, higher quality tenants, or even appreciation potential. That will determine the type of properties and the price range you want to focus on.
States that are popular these days: FL, GA, NC, TN, OH, TX, IN, AL
-
- Bay Area, CA · Member since 2016 · 80 posts · 43 votes3y
Quote from @Vicki X.:
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceGiven your budget, mid west probably makes most sense.
There have been many good answers above. Here is my summary of major considerations in evaluating different markets:-
Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list
-
Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group
(Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).
-
Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!
-
Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+
-
Rental regulations as some States are more friendly to renters while some more friendly to investors
-
Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person
-
Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few
Some other considerations:
- Form an opinion about where you'd like to live in the future, and factor that in. Even if you work with PMs, being close to your properties will still be a plus.
- Also decide whether cash flow is most important for you, or good enough cash flow with less hassle, higher quality tenants, or even appreciation potential. That will determine the type of properties and the price range you want to focus on.
States that are popular these days: FL, GA, NC, TN, OH, TX, IN, AL
+1
@Vicki X is giving great advice here.Finding a trustworthy PM is not emphasized enough. PM will make or break you in the long run. When I first started I put heavy weighting in finding a good PM and even more so than the market itself. You could be a in a growing market but lose in the long run if your PM is poor performing and/or not honest.
Also due diligence on hazards / natural disasters + risk mitigation + associated costs (i.e. flood insurance needed and impact to your bottom line) should not be overlooked.
I would marry Vicki X's advice with Melissa's advice above about goals.. start top down.
-
- Member since 2023 · 10 posts · 1 vote3y
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your advice - Member since 2023 · 10 posts · 1 vote3yI have two rental properties in SC if you are interested. 4 bed 2 bath $108,999 and a 2 bed 1 bath $99,000
Quote from @Warren A.:
Quote from @Vicki X.:
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceGiven your budget, mid west probably makes most sense.
There have been many good answers above. Here is my summary of major considerations in evaluating different markets:-
Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list
-
Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group
(Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).
-
Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!
-
Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+
-
Rental regulations as some States are more friendly to renters while some more friendly to investors
-
Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person
-
Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few
Some other considerations:
- Form an opinion about where you'd like to live in the future, and factor that in. Even if you work with PMs, being close to your properties will still be a plus.
- Also decide whether cash flow is most important for you, or good enough cash flow with less hassle, higher quality tenants, or even appreciation potential. That will determine the type of properties and the price range you want to focus on.
States that are popular these days: FL, GA, NC, TN, OH, TX, IN, AL
+1
@Vicki X is giving great advice here.Finding a trustworthy PM is not emphasized enough. PM will make or break you in the long run. When I first started I put heavy weighting in finding a good PM and even more so than the market itself. You could be a in a growing market but lose in the long run if your PM is poor performing and/or not honest.
Also due diligence on hazards / natural disasters + risk mitigation + associated costs (i.e. flood insurance needed and impact to your bottom line) should not be overlooked.
I would marry Vicki X's advice with Melissa's advice above about goals.. start top down.
-
- Smokies / Greenville, SC · Member since 2021 · 130 posts · 146 votes3y
Quote from @Jason Brown:
I have two rental properties in SC if you are interested. 4 bed 2 bath $108,999 and a 2 bed 1 bath $99,000Quote from @Warren A.:
Quote from @Vicki X.:
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceGiven your budget, mid west probably makes most sense.
There have been many good answers above. Here is my summary of major considerations in evaluating different markets:-
Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list
-
Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group
(Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).
-
Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!
-
Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+
-
Rental regulations as some States are more friendly to renters while some more friendly to investors
-
Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person
-
Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few
Some other considerations:
- Form an opinion about where you'd like to live in the future, and factor that in. Even if you work with PMs, being close to your properties will still be a plus.
- Also decide whether cash flow is most important for you, or good enough cash flow with less hassle, higher quality tenants, or even appreciation potential. That will determine the type of properties and the price range you want to focus on.
States that are popular these days: FL, GA, NC, TN, OH, TX, IN, AL
+1
@Vicki X is giving great advice here.Finding a trustworthy PM is not emphasized enough. PM will make or break you in the long run. When I first started I put heavy weighting in finding a good PM and even more so than the market itself. You could be a in a growing market but lose in the long run if your PM is poor performing and/or not honest.
Also due diligence on hazards / natural disasters + risk mitigation + associated costs (i.e. flood insurance needed and impact to your bottom line) should not be overlooked.
I would marry Vicki X's advice with Melissa's advice above about goals.. start top down.
Where in SC?
-
- Member since 2023 · 10 posts · 1 vote3y
Quote from @Mack Lengel:
Quote from @Jason Brown:
I have two rental properties in SC if you are interested. 4 bed 2 bath $108,999 and a 2 bed 1 bath $99,000Quote from @Warren A.:
Quote from @Vicki X.:
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceGiven your budget, mid west probably makes most sense.
There have been many good answers above. Here is my summary of major considerations in evaluating different markets:-
Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list
-
Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group
(Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).
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Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!
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Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+
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Rental regulations as some States are more friendly to renters while some more friendly to investors
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Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person
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Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few
Some other considerations:
- Form an opinion about where you'd like to live in the future, and factor that in. Even if you work with PMs, being close to your properties will still be a plus.
- Also decide whether cash flow is most important for you, or good enough cash flow with less hassle, higher quality tenants, or even appreciation potential. That will determine the type of properties and the price range you want to focus on.
States that are popular these days: FL, GA, NC, TN, OH, TX, IN, AL
+1
@Vicki X is giving great advice here.Finding a trustworthy PM is not emphasized enough. PM will make or break you in the long run. When I first started I put heavy weighting in finding a good PM and even more so than the market itself. You could be a in a growing market but lose in the long run if your PM is poor performing and/or not honest.
Also due diligence on hazards / natural disasters + risk mitigation + associated costs (i.e. flood insurance needed and impact to your bottom line) should not be overlooked.
I would marry Vicki X's advice with Melissa's advice above about goals.. start top down.
Where in SC?
Orangeburg
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- Member since 2023 · 10 posts · 1 vote3y
Quote from @Mack Lengel:
Quote from @Jason Brown:
I have two rental properties in SC if you are interested. 4 bed 2 bath $108,999 and a 2 bed 1 bath $99,000Quote from @Warren A.:
Quote from @Vicki X.:
Quote from @Sam Meade:
Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?
Thanks in advance for your adviceGiven your budget, mid west probably makes most sense.
There have been many good answers above. Here is my summary of major considerations in evaluating different markets:-
Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list
-
Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group
(Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).
-
Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!
-
Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+
-
Rental regulations as some States are more friendly to renters while some more friendly to investors
-
Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person
-
Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few
Some other considerations:
- Form an opinion about where you'd like to live in the future, and factor that in. Even if you work with PMs, being close to your properties will still be a plus.
- Also decide whether cash flow is most important for you, or good enough cash flow with less hassle, higher quality tenants, or even appreciation potential. That will determine the type of properties and the price range you want to focus on.
States that are popular these days: FL, GA, NC, TN, OH, TX, IN, AL
+1
@Vicki X is giving great advice here.Finding a trustworthy PM is not emphasized enough. PM will make or break you in the long run. When I first started I put heavy weighting in finding a good PM and even more so than the market itself. You could be a in a growing market but lose in the long run if your PM is poor performing and/or not honest.
Also due diligence on hazards / natural disasters + risk mitigation + associated costs (i.e. flood insurance needed and impact to your bottom line) should not be overlooked.
I would marry Vicki X's advice with Melissa's advice above about goals.. start top down.
Where in SC?
Orangeburg. If you are interested send me your email and I can send pictures.
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