New to out of state long term investing
Member since 2023 · 6 posts · 12 votes
New to out of state long term investing
Most Popular Reply
Investor · Member since 2022 · 235 posts · 127 votes
3yHey @Crystal Lo congrats on setting yourself up to invest. It does come down to what are your goals. Immediate returns are more possible in places like Ohio, Kansas City, etc. And there are even a few markets like Columbus that might have a good mix of immediate returns + upside from an expected appreciation perspective.
We still invest in Denver and Dallas because fundamentally there are still macro tailwinds for these markets. Getting cash flow will be very difficult but if your goals are long term in nature, the right deal still makes sense in those markets imo.
Our team sources deals across these markets if you would ever like to connect to learn more.
23 Replies
- 3yAustin McClainBusiness MemberReal Estate Agent · OH · Member since 2021 · 350 posts · 603 votes
I invest in Columbus and have had success there. It's an appreciating market with tech jobs and the population increasing.
- 3yBrandon GoldsmithBusiness MemberReal Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
Do you have any additional criteria for the buy box? That might help you narrow down a city just based on inventory. @Crystal Lo
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
Not sure why you would consider those markets, not great returns, maybe 3- 4% net why bother and overpay in this market? With 100k you can get 3 in other markets that will cashflow much better. I have seen 100k all in rents 1300ish, values about 115k- 120k, not going to get those numbers in Dallas or Denver,
All the best
- 3yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesHi Crystal, 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. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
Jimmy Lieu, Red 1 Realty4.9122 Reviews - Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes3y
Hey Crystal, what is your primary motivation for investing?
You'll likely be hard pressed to find much in terms of cash flow in Dallas or Denver if that's your goal.
I live a bit north of you in the Central Coast of CA and invest in Detroit. I have 12-doors there now and am very active in the market. It's been fantastic for us.
- Member since 2023 · 84 posts · 35 votes3y
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
Why not Kansas City?
Not only are we one of the hottest markets in the country, but we also have LOTS going on! Between the Chiefs multiple super bowls (and the Kelce/Swift hype), the 2023 NFL draft, World Cup in 2026, new women's soccer team (KC Current), downtown baseball stadium in the works, Panasonic building a new facility, etc.
Kansas City will also give you a lot of bang for your buck too
- 3yJourney TooleBusiness MemberRealtor · Cleveland, OH · Member since 2021 · 39 posts · 21 votes
@Crystal Lo
Hello! I am biased, but take a look at Cleveland, Akron, or other Ohio cities. Still possible to get double digit COC and ROI numbers in our market, even with high interest rates. With a budget like that, you can buy in the higher appreciation areas here too. If you'd rather spread your cash out, you can get turnkey cashflowing rentals for $100-$150k here.
Be happy to explain more!
- Member since 2023 · 1 post · 2 votes3y
Quote from @Jimmy Lieu:
Hi Crystal, 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. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
I didn't realize about the job growth there in Columbus, but that sounds about right. I'm originally from Cleveland, OH, and remember always hearing good things about Columbus. Better paying jobs and quality of life etc. I'm now living in Florida and also want to invest in Cleveland and/or Columbus. I don't know if remember me, but you welcomed me a day or so ago in the Columbus Real Estate Investor Group on Facebook. It's good to see you on here.
- Investor · Member since 2022 · 49 posts · 17 votes3yWhich markets would you recommend?
Quote from @Bob S.:
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
Not sure why you would consider those markets, not great returns, maybe 3- 4% net why bother and overpay in this market? With 100k you can get 3 in other markets that will cashflow much better. I have seen 100k all in rents 1300ish, values about 115k- 120k, not going to get those numbers in Dallas or Denver,
All the best
Quote from @Eyal Goren:
Which markets would you recommend?Quote from @Bob S.:
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
Not sure why you would consider those markets, not great returns, maybe 3- 4% net why bother and overpay in this market? With 100k you can get 3 in other markets that will cashflow much better. I have seen 100k all in rents 1300ish, values about 115k- 120k, not going to get those numbers in Dallas or Denver,
All the best
Have a look around , there are other places you can get much higher returns,
- Real Estate Agent · Arlington, TX · Member since 2016 · 151 posts · 54 votes3y
My husband and I purchased our Triplex in Arlington (DALLAS/FORT WORTH AREA) as out of state investors. We moved to area afterwards but I understand how the process can be as a buyer. We chose DFW due to the opportunity in multifamily property and the price point. At your 400K price point I can find you a duplex here with multiple rental stategies.
- Member since 2023 · 6 posts · 12 votes3y
Quote from @Bob S.:
Quote from @Eyal Goren:
Which markets would you recommend?Quote from @Bob S.:
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
Not sure why you would consider those markets, not great returns, maybe 3- 4% net why bother and overpay in this market? With 100k you can get 3 in other markets that will cashflow much better. I have seen 100k all in rents 1300ish, values about 115k- 120k, not going to get those numbers in Dallas or Denver,
All the best
Have a look around , there are other places you can get much higher returns,
Any markets you recommend? And where can I find market analysis for locations?
- Investor · Member since 2022 · 235 posts · 127 votes3y
Hey @Crystal Lo congrats on setting yourself up to invest. It does come down to what are your goals. Immediate returns are more possible in places like Ohio, Kansas City, etc. And there are even a few markets like Columbus that might have a good mix of immediate returns + upside from an expected appreciation perspective.
We still invest in Denver and Dallas because fundamentally there are still macro tailwinds for these markets. Getting cash flow will be very difficult but if your goals are long term in nature, the right deal still makes sense in those markets imo.
Our team sources deals across these markets if you would ever like to connect to learn more.
- Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes3y
I would generally aim for higher cash flow markets. Between the two, I think Dallas is a bit cheaper and has a better rent/cost ratio. And overall, it's a solid, growing market. So I would lean toward Dallas.
Hey Crystal,
Start by researching potential markets. You've mentioned Dallas, TX, and Denver, CO, which are both popular choices for real estate investment, but you can explore other cities as well. Look for cities with strong job markets, population growth, and a diverse economy.
Define your investment criteria clearly. This includes factors like your budget, desired return on investment (ROI), risk tolerance, and investment strategy (e.g., long-term rental, short-term vacation rental, fix and flip).
Work with a financial advisor or use real estate investment calculators to evaluate the potential ROI of properties in your target cities. Consider factors like property appreciation, cash flow, and potential tax benefits.
If you have a property in mind please feel free to send me a DM. I can take a look with you.- Frisco, TX · Member since 2019 · 8 posts · 7 votes3y
Hey Crystal,
I am a local agent in Dallas if you need local help, let me know, glad to schedule something to explain you the Dallas market.
Tiago
- Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes3y
Congrats on taking a first step. My biggest advice to our clients in Denver and Colorado Springs is to not overthink it. A couple thoughts.
-- Do you know anyone in either of the markets? This isn't a deal-sealer, but I think having someone in that market can make understanding it easier.
-- A cash-on-cash return calculation is good for comparing similar properties in different markets. (As opposed to cap rate, which helps compare similar properties in the same market.)
-- Start looking some what you can get for $400k in each market. Use Rentometer or Zillow to get a sense of the rents for such a place, plug em in to your CoC calculator and see what comes up.
I don't know Dallas, but I can tell you that in Denver, you're likely looking at a condo or townhome for that $400k budget. That's not a bad buy. The majority of our rentals have been condos. But it's something to know.
Also, are you doing a LTR or would you consider a medium-term rental (or heck, even short-term rental)? If you're doing LTR or MTR, I'd suggest trying to manage yourself. Unless you have 10 properties (and sometimes even then), the benefit of a property manager doesn't outweigh the money spent, in my opinion. Once you have your systems in place, running a mid-term rental or LTR is relatively easy.
Whatever you decide, I wish you luck!
- 3ySebastian MarroquinPro MemberReal Estate Agent · Pasadena, CA · Member since 2015 · 477 posts · 263 votes
Congrats!
It looks like you are putting about $80k as the down payment for your next investment.
What if you were able to put down about $40k total as a down payment for a property in Los Angeles, that cash flows and has $50k to $150k equity?
(example: purchase SFR and use construction loan to rehab it and add 2nd or more units)
In CA where appreciation will be much higher and where you live so that you can manage it much easier?
- Member since 2023 · 8 posts · 3 votes3y
Quote from @Bob S.:
Quote from @Eyal Goren:
Which markets would you recommend?Quote from @Bob S.:
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
Not sure why you would consider those markets, not great returns, maybe 3- 4% net why bother and overpay in this market? With 100k you can get 3 in other markets that will cashflow much better. I have seen 100k all in rents 1300ish, values about 115k- 120k, not going to get those numbers in Dallas or Denver,
All the best
Have a look around , there are other places you can get much higher returns,
Hi Bob, I would love to talk shop with you. I am interested in purchasing my first investment properly and am overwhelmed with so much information. I live in Columbus ( just moved here), but looking in the Cleveland area. I used to live in Tremont for 2 years, so now "very little" of the Cleveland area. I would like to connect if possible.
- 3yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
That's a great budget and a solid plan to invest out of state. Given your criteria, I'd recommend looking into Columbus, OH. It offers a favorable rental market and fits well within your budget. I'd suggest connecting with local agents and property managers there to get more specific insights. They can be a valuable resource for your investment journey. Best of luck!
Section 8 Launch52 Reviews - 3yBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 720 votes
Quote from @Crystal Lo:
Hi there BiggerPockets community,
I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!
Have you checked out the Reno NV Market? Job growth and equity growth coupled with being close to the highest income area in the country there is good equity growth. Cap rates are in the 5-7% range. We have over 1300 properties analyzed and the data.
- Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes3y
currious why you picked those two areas? Denver is not landlord friendly and Dallas has high property taxes making cashflow little to nothing right now.
- Member since 2023 · 6 posts · 12 votes3y
Quote from @Travis Biziorek:
Hey Crystal, what is your primary motivation for investing?
You'll likely be hard pressed to find much in terms of cash flow in Dallas or Denver if that's your goal.
I live a bit north of you in the Central Coast of CA and invest in Detroit. I have 12-doors there now and am very active in the market. It's been fantastic for us.
Hi Travis! My primary motivation is cash flow. With all the feedback, I’m open to other locations as it seems Denver and Dallas aren’t promising cash flow investments. I’ll look into Detroit!
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