Out of state search for a multi family home

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Out of state search for a multi family home

Jasmin Garcia
Member since 2023 · 1 post · 4 votes

Hello, 

My name is Jasmin and I am new to the forum. I've been listening to Bigger Pockets for quit a while now and I am interested in building a real estate portfolio. I live in NY and prices here are extremely high so I am hoping to buy out of state. How do you recommend I go about finding the best areas to buy a property out of state? I am hoping to buy my first multi family home at a reasonable price. It will likely have to be a fixer upper. Thank you very much for considering my post. 

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Justin Hammerle
Realtor · Providence, RI · Member since 2022 · 404 posts · 262 votes
3y

@Jasmin Garcia - If you haven't already I would recommend seeking loan pre-approval;  once pre-approved you can identify your price range and back into a market.  Knowing how far you are willing to go and also building a team to include a Realtor, Property Manager, Contractor, and Lender should be prioritized.

https://www.biggerpockets.com/blog/core-four-real-estate-tea...

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  • Justin Hammerle
    Realtor · Providence, RI · Member since 2022 · 404 posts · 262 votes
    3y

    @Jasmin Garcia - If you haven't already I would recommend seeking loan pre-approval;  once pre-approved you can identify your price range and back into a market.  Knowing how far you are willing to go and also building a team to include a Realtor, Property Manager, Contractor, and Lender should be prioritized.

    https://www.biggerpockets.com/blog/core-four-real-estate-tea...

    2Reply
  • Ryan Muska
    Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
    3y

    Determine what state you want to invest in. I like landlord-friendly states, but it doesn't have to be the case. Then find where there is a lot of population growth/wage growth/job growth/whatever statistic you think is important for a thriving economy and find the best area in that state. Then do what @Justin Hammerle said and build a team. 

    Good luck!

    2Reply
  • Edward Dean
    Real Estate Agent · San Diego · Member since 2019 · 91 posts · 52 votes
    3y

    Unless you know people in other parts of the Country where you would like to invest, it is probably best to focus on areas close enough that you can drive to them. It will make the search easier (narrows it down for you), will make finding and vetting your team easier, and once you have a property, it will make it easier to do repairs, check on the property, manage it, etc. There are plenty of people who invest thousands of miles away from where they live but if you can swing it, you'll probably have an easier time if you can find an area within driving distance of you to get started. Luckily, there should be plenty of areas around NYC that are cheaper to buy in than NYC.

    Also, you can check out books on the topic, like David Greene's book on Long Distance Investing.

    Best of luck!

    0Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    3y

    Hey @Jasmin Garcia - I'm an investor and realtor in NYC, and invest long distance. 

    The answer to your question depends on your goals themselves as well as how much of a project you're wanting. There is no right answer, because there are a ton of markets all across the US that work for you - it just depends on how much you want to be involved as well as your budget. 

    For example, a property in Kansas for $150k that cashflows $500/month might be worth it to you if you manage it yourself - but not if you. hire a property manager. 

    In the same example, a $450k property in Jersey might be worth it to you even if it cashflows $200/month because it's appreciating well and eventually your cashflow will increase... and it's within a 4 hour driving distance for you to self manage. 

    Lots of factors to consider, but the most important is your budget. If you can figure out how much money you have to spend on this, you'll quickly start to eliminate markets. 

    And then you have to decide whether you want something that's within a day's driving distance, or a few hours, or several hours etc. - that's entirely up to you. 

    Lots more to chat about this, if you'd like to you can shoot me a message and I'm happy to hop on a short call to give my experience - thanks. 

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    There's no best area for everyone.

    If you research here on BP you'll find many OOS investors picked a state they are familiar with or already have contacts in.

    What's most important is finding an area that will meet your expectations.

    Logical Property Management4.9464 Reviews
    WebsiteView Page
    0Reply
  • Lucy Atkinson
    Wholesaler · Lexington, KY · Member since 2020 · 51 posts · 25 votes
    3y

    Hi Jasmin, I am a former Property Manager and current Wholesaler based out of Lexington, KY. Through both lenses I have worked with investors from Utah, New York, Montana, and Florida to find, renovate, and manage portfolios here in KY. It is very important that you feel confident with the team you choose to run your properties and find someone who can manage your budget and expectations when it comes to your rentals. I would say ask a lot of questions about the areas and try and connect with investors that are local. I know here in KY there are tons of very active Facebook groups that make networking very easy and are great resources for finding lenders and contractors 

    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    3y

    Hey Jasmin, I'm in CA so I understand the struggle of investing locally. 

    If you're wanting cash flow at all there are only a handful of markets that make sense today, mostly in the Midwest.

    I invest in Detroit and have 12-doors there. It's an overlooked market that's slowly getting the attention it deserves. But I've been investing there since 2019 and have no plans on stopping.

    The city is going through a major revitalization, so you're seeing prices move higher. But there's still cash flow in most deals. 

    And best of all, it's a quick flight from NY if you want to visit.

    1Reply
  • Matthew Masoud
    Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
    3y

    Depends on your goals.

    There are cash-flow markets (Ohio, Indiana, Kansas) and appreciation markets (AZ/FL/TX Although maybe not in this market.)

    If you're looking to get out of a W2 look for strong cashflow markets. I would start your search and OH, IN, KS if funds are tight, if not I'd look at NC, SC, TN.

    Get familiar with the area and build a team there. You'll likely have to go out there a few times, especially in the beginning.

    Good luck

    1Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    3y
    Quote from @Jasmin Garcia:

    Hello, 

    My name is Jasmin and I am new to the forum. I've been listening to Bigger Pockets for quit a while now and I am interested in building a real estate portfolio. I live in NY and prices here are extremely high so I am hoping to buy out of state. How do you recommend I go about finding the best areas to buy a property out of state? I am hoping to buy my first multi family home at a reasonable price. It will likely have to be a fixer upper. Thank you very much for considering my post. 


     Hello Jasmin & welcome to the BP forums! 

    This is a great place to connect with people in various markets. Also a great place to exercise your curiosity... I'd recommend using the Search function to check out topics and areas of interest. This way you can find answers to some of your questions that might've been posted by fellow members.

    Regarding finding best areas to invest OOS, landlord-friendly states like FL, TX, AZ, and GA are a good place to start! Propstream published a blog on landlord-friendly states a few months ago - check it out here.

    Lastly, you may want to consider househacking locally if you're already paying rent in NY. Depending on your location, property type and down payment, you might be able to lower your current living expenses. 

    The bonus to househacking in NY is the annual appreciation you'll see year over year. Many local househackers use the strategy for 2-4 years before using their appreciation/equity to purchase larger properties with more units out of state.

    All the best to you on your journey!

    Abel

    REbuild Team - eXp Realty5239 Reviews
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    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3y
    Quote from @Jasmin Garcia:

    Hello, 

    My name is Jasmin and I am new to the forum. I've been listening to Bigger Pockets for quit a while now and I am interested in building a real estate portfolio. I live in NY and prices here are extremely high so I am hoping to buy out of state. How do you recommend I go about finding the best areas to buy a property out of state? I am hoping to buy my first multi family home at a reasonable price. It will likely have to be a fixer upper. Thank you very much for considering my post. 


     Hey Jasmin, Congrats on getting started. I would look into the Columbus market. It's a great place to invest for both appreciation and cashflow. I recommend investing near economic bases near downtown and surrounding areas. Most of my clients look into areas like Old North, Old Town East/King Lincoln Bronze Ville, Merion Village, Driving Park, North Linden, Hungarian Village, Bexley, and North Hilltop.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 533 Reviews
    WebsiteView Page
    1Reply
  • Michael Lipari
    Member since 2022 · 29 posts · 23 votes
    3y

    Hi Jasmin, 

    I am living in NYC area as well. Decided to buy a SFH in the catskills area near the ski resorts to try and airbnb. Got a decent price that would be cheap in most states because it needs a full reno. It is only 2.5 hours drive from NYC. I was looking into out of state too but it seems difficult for a beginner to manage a full reno from afar. Lots of areas in Upstate NY look decent for investing such as Rochester, Albany, Syracuse.

    1Reply
  • Ecaterina Katerina Morosan
    Real Estate Agent · Miami, FL · Member since 2022 · 238 posts · 102 votes
    3y

    Hi Jasmin,

    A lot of NYC investors sold their assets in NY due to after-pandemic issues with non-paying tenants. They moved their cash to landlord-friendly markets such as Florida, although they still live in NY.

    You can manage the property remotely without having to be there every time an issue arises. You just have to have the right team to work with that has good records and work ethics. 

    0Reply
  • Jinwoo Kim
    Member since 2023 · 1 post · 1 vote
    3y
    Quote from @Mohammed Rahman:

    Hey @Jasmin Garcia - I'm an investor and realtor in NYC, and invest long distance. 

    The answer to your question depends on your goals themselves as well as how much of a project you're wanting. There is no right answer, because there are a ton of markets all across the US that work for you - it just depends on how much you want to be involved as well as your budget. 

    For example, a property in Kansas for $150k that cashflows $500/month might be worth it to you if you manage it yourself - but not if you. hire a property manager. 

    In the same example, a $450k property in Jersey might be worth it to you even if it cashflows $200/month because it's appreciating well and eventually your cashflow will increase... and it's within a 4 hour driving distance for you to self manage. 

    Lots of factors to consider, but the most important is your budget. If you can figure out how much money you have to spend on this, you'll quickly start to eliminate markets. 

    And then you have to decide whether you want something that's within a day's driving distance, or a few hours, or several hours etc. - that's entirely up to you. 

    Lots more to chat about this, if you'd like to you can shoot me a message and I'm happy to hop on a short call to give my experience - thanks. 

    Hi Mohammed,

    Could you please elaborate more why $150k that cashflows $500/month might not be worth if she hire a property manager? I am a newbie and want to learn more. Thanks!
    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Jasmin Garcia:

    Hello, 

    My name is Jasmin and I am new to the forum. I've been listening to Bigger Pockets for quit a while now and I am interested in building a real estate portfolio. I live in NY and prices here are extremely high so I am hoping to buy out of state. How do you recommend I go about finding the best areas to buy a property out of state? I am hoping to buy my first multi family home at a reasonable price. It will likely have to be a fixer upper. Thank you very much for considering my post. 

    Hey Jasmin, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9122 Reviews
    WebsiteView Page
    0Reply
  • David Kulbacki
    Member since 2021 · 14 posts · 4 votes
    3y

    Can't speak for all of Montana, but I know where I'm at labor is really tight.  The cleaners are increasing their fees.  Supply and demand.

    0Reply
  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 263 votes
    3y

    We live in Ontario and invest in the US. We have chosen to invest in the Detroit Toledo area because of the great returns there.  more then willing to discuss what we are doing and have learnt with anyone who wants to chat

    0Reply
  • Justin Roland
    Developer · Albany, NY · Member since 2016 · 30 posts · 14 votes
    3y

    Hey I have multi family rentals in Albany, Schenectady and Amsterdam NY all upstate Ny about 2-3 hours from NYC depending one where you are down there. I wholesale houses and flip with some of my investor clients and half of them are from NYC. If your ever looking to have boots on the ground Upstate NY shoot me a message Id love to help you with the resources I have being born and raised upstate. If your beginning your journey I would say investing far away from your home can be daunting if you dont have boots one the ground. So I would say take precaution.Good Luck one your endeavors!

    0Reply
  • Milton TimoteoPro Member
    TX · Member since 2024 · 3 posts · 0 votes
    2y
    Quote from @Linda Labbe:

    We live in Ontario and invest in the US. We have chosen to invest in the Detroit Toledo area because of the great returns there.  more then willing to discuss what we are doing and have learnt with anyone who wants to chat

    I would love to connect 
    0Reply
  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 263 votes
    2y
    Quote from @Milton Timoteo:
    Quote from @Linda Labbe:

    We live in Ontario and invest in the US. We have chosen to invest in the Detroit Toledo area because of the great returns there.  more then willing to discuss what we are doing and have learnt with anyone who wants to chat

    I would love to connect    Message me love connecting with new people

    0Reply
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