Lake Worth, FL · Member since 2020 · 5 posts · 11 votes
Hello BP Community! I am seeking out advice on how to get started in Real Estate Investing. I'm retired military who currently lives in Palm Beach County. For years I have been wanting to get started in Multi-Family Investing. The house hack and using my VA entitlement won't work because I have used that on my current home. The reason I'm interested in the midwest is because it is cheaper than Florida, but if I could find the right deal in Florida it could be an option.
Any advice, suggestions, or comments would be greatly appreciated.
Investing out of state is a valid option for many that live in expensive markets. To successfully execute this, you'll need to do some research and develop a core 4- lender, contractor, agent, PM. If you can build a good team with strong knowledge of the market, you will be successful. Consider investing in Ohio, with lower entry points and a favorable price:rent ratio. Here in Columbus, we have a great mix of appreciation and cashflow, and I also see a lot of investors getting good cash flow in Cleveland.
Evan, compared to Lake Worth (Palm Beach County) there are lower priced properties in JAX, Tallahassee and Gainesville. Last time I looked there were good ops in T and G for multifams near the Unis. Most were already renovated. I would also look near Pensacola where there's a military base and a need for off-base rentals.
@Evan Oaks Hey Evan - The Midwest is a great choice for low cost of entry and cash flow. I work in Cleveland and many oos investors look here for the good prices and good cash flow. Let me know if you'd like to discuss Cleveland in more detail!
Investing out of state is a valid option for many that live in expensive markets. To successfully execute this, you'll need to do some research and develop a core 4- lender, contractor, agent, PM. If you can build a good team with strong knowledge of the market, you will be successful. Consider investing in Ohio, with lower entry points and a favorable price:rent ratio. Here in Columbus, we have a great mix of appreciation and cashflow, and I also see a lot of investors getting good cash flow in Cleveland.
Hello BP Community! I am seeking out advice on how to get started in Real Estate Investing. I'm retired military who currently lives in Palm Beach County. For years I have been wanting to get started in Multi-Family Investing. The house hack and using my VA entitlement won't work because I have used that on my current home. The reason I'm interested in the midwest is because it is cheaper than Florida, but if I could find the right deal in Florida it could be an option.
Any advice, suggestions, or comments would be greatly appreciated.
Ohio is affordable with multiple cashflow markets such as Toledo, Dayton, and Cleveland. Happy to share more info
Hi Evan, Midwest markets are some of the best markets to get a cash flow heavy rental property. The appreciation play is not that great but to have a good buy and hold rental that produces decent cash flow is a good strategy in the markets like Indianapolis, Kansas City, Cleveland or Detroit. I have used the out of state investing strategy and purchased a few properties in Cleveland and built a portfolio for myself while having a W2 job. Feel free to reach out and I can try to add value if you are stuck.
Hello BP Community! I am seeking out advice on how to get started in Real Estate Investing. I'm retired military who currently lives in Palm Beach County. For years I have been wanting to get started in Multi-Family Investing. The house hack and using my VA entitlement won't work because I have used that on my current home. The reason I'm interested in the midwest is because it is cheaper than Florida, but if I could find the right deal in Florida it could be an option.
Any advice, suggestions, or comments would be greatly appreciated.
Happy to chat on KC! It is a thriving market with a mix of cashflow and appreciation
Hello BP Community! I am seeking out advice on how to get started in Real Estate Investing. I'm retired military who currently lives in Palm Beach County. For years I have been wanting to get started in Multi-Family Investing. The house hack and using my VA entitlement won't work because I have used that on my current home. The reason I'm interested in the midwest is because it is cheaper than Florida, but if I could find the right deal in Florida it could be an option.
Any advice, suggestions, or comments would be greatly appreciated.
Hi Evan, 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 this month, I’ve gotten under contract for my clients for multiple 20%+ cash on cash rental properties so there’s definitely tons of opportunity here. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
Hey Evan, thank you for your service. Are you interested in multifamily even though you can't use VA? I would suggest Kansas City Missouri if you are looking for long term rentals. I would love to connect and see how I can help you with your long and short term goals!
@Evan Oaks This is a great community and all of the comments have been very positive. But I’m not a realtor, I’m an investor like you. So let me help temper your expectations, as I (like everyone else) am always looking for the next deal.
Don't use the MLS or sites like CoStar with the intention to buy based on your findings. They have the deals that brokers couldn't get anyone to buy off market in their phone book of investors, so they ended up on there where the entire world now has direct access. Will most always be high priced. Research markets and states that have the cities you feel confident in based on your long (or short) term goals and then reach out to brokers there. A simple post like this when you've narrowed things down will help everyone help you.
Out of state investing, to me, is most helpful in gaining access to one thing: price points. If things are priced high and are of good quality where you live, then buy those, right? Well we obviously can’t if we lack capital and the numbers don’t work for our goals. You MUST have your goals clearly laid out before you start shopping around. Some markets in Ohio are good for cash flow but not great for appreciation. So what happens if the home hasn’t appreciated beyond what you paid for it and you go to sell in a few years for whatever reason? You aren’t getting all of your money back due to the costs of selling the home, and the venture may not have been as lucrative as you planned. The short term, cash flow-only purchase means you bought bonds at that point, not real estate.
I have a simple cash flow and appreciation target for any deal, and it’s the same no matter what state I’m looking in. Again, investing out of state is all about access to price point for me. If a property cash flows close to my target, has modest (and I mean modest) appreciation forecasts at least, and is in an area with some semblance of a bright future (shows slight growth, landlord friendly, etc) then it’s a buy.
You’re doing the right thing by venturing beyond where you are if nothing near you seemingly works.
Lastly I’ll reiterate that you also MUST do your own research about the place you’d consider investing. If my goal was to sell houses then I might be a bit biased about my market. If it were me as the realtor I would 100% have a sense of optimism about my market, and rightfully so. I’m selling there because I believe in it. But you need to be even keeled and scrutinies of where you put your money, so measure a hundred times and cut once.
Hi @Evan Oaks, If the numbers are not working where you live look at investing in other markets. I agree that the Midwest is a great place to start with lower price points. I invest locally in Columbus and we certainly see an increasing population and job opportunities. This is a great indication of appreciation!
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