Branching into out of state investing

Member since 2024 · 13 posts · 14 votes

We have a few rentals in our town (Tacoma, WA). Getting frustrated with the extreme laws and ready to go to a different area. We have a road trip planned to the midwest/south (Kansas City, St. Louis, Indianapolis, Cincinnati, Louisville, Nashville). We’ve decided to turn this trip into exploring the market over there.
Looking for advice on what we should do in preparation and areas we should focus on/avoid.

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Patrick DruryBusiness Member

Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes

@Andrea Lauritzen
If you are going to be in Ohio you should check out Columbus and Cleveland

[email protected]614-412-4565

Reafco-556 Reviews

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Samuel DioufBusiness Member
Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
That's a great idea. I can send you a graded map of Ohio you could use as a reference on your journey!
[email protected]614-662-1652
Reafco - Samuel Diouf528 Reviews
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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
2y
Happy to chat on KC
0 Reply
Nader Shariff
Detroit, MI · Member since 2020 · 150 posts · 68 votes
2y
Make sure to add Detroit, MI to your list, if you have time. A lot of good things are happening in the city.
0 Reply
Sam McCormackBusiness Member
Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
2y
Quote from @Andrea Lauritzen:

We have a few rentals in our town (Tacoma, WA). Getting frustrated with the extreme laws and ready to go to a different area. We have a road trip planned to the midwest/south (Kansas City, St. Louis, Indianapolis, Cincinnati, Louisville, Nashville). We’ve decided to turn this trip into exploring the market over there.
Looking for advice on what we should do in preparation and areas we should focus on/avoid.

I would recommend talking to realtors in the areas you are looking in to get more insight and what to expect. I am an agent in Cincinnati so I went ahead and shot you a message about the area!
[email protected]859-443-4952
Sam McCormack Realtor
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Nicholas Zaharevich
Rental Property Investor · Spanaway, WA · Member since 2016 · 82 posts · 41 votes
2y
@Andrea Lauritzen I 100% agree! Washington State and especially the city of Tacoma are making this area a less desirable area to invest in. On top of that, there's a bill working it's way through the state to add an additional sales tax on real estate. We own and manage several rentals across the state an will also be looking for opportunities to 1031 exchange into more landlord friendly states with better price points.

I just spent a few months out near Kansas City, MO and Leavenworth, KS. Loved the area!

I'm happy to cheer about my experience out there, and always like meeting up with other investors in the Tacoma area.

Nick

0 Reply
Andrea Lauritzen
OP
Member since 2024 · 13 posts · 14 votes
2y
Quote from @Caleb Brown:

Happy to chat on KC

Yes, we are very interested in KC.
0 Reply
Andrea Lauritzen
OP
Member since 2024 · 13 posts · 14 votes
2y
Quote from @Nader Shariff:

Make sure to add Detroit, MI to your list, if you have time. A lot of good things are happening in the city.

Hi Nader, thank you for the tip. It seems like a lot of people are looking at Detroit. We may need to make another trip to go check that market out.
0 Reply
Nader Shariff
Detroit, MI · Member since 2020 · 150 posts · 68 votes
2y
Quote from @Andrea Lauritzen:

Quote from @Nader Shariff:

Make sure to add Detroit, MI to your list, if you have time. A lot of good things are happening in the city.

Hi Nader, thank you for the tip. It seems like a lot of people are looking at Detroit. We may need to make another trip to go check that market out.

No worries, if you ever want more advice on the market , I am happy to offer some of the knowledge based off experience.
1 Reply
Andrea Lauritzen
OP
Member since 2024 · 13 posts · 14 votes
2y
Quote from @Nicholas Zaharevich:

@Andrea Lauritzen I 100% agree! Washington State and especially the city of Tacoma are making this area a less desirable area to invest in. On top of that, there's a bill working it's way through the state to add an additional sales tax on real estate. We own and manage several rentals across the state an will also be looking for opportunities to 1031 exchange into more landlord friendly states with better price points.

I just spent a few months out near Kansas City, MO and Leavenworth, KS. Loved the area!

I'm happy to cheer about my experience out there, and always like meeting up with other investors in the Tacoma area.

Nick

We are considering doing a 1031 to get started in the Midwest - do you have any tips or local firms you recommend who can do out of state 1031's?

Hopefully soon we can add Midwest investor to the real estate accomplishments list!!
0 Reply
Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
2y
@Andrea Lauritzen, Most full-service 1031 QI firms will all work nationally. A 1031 exchange is performed the same in all states since it is a federal statute. And its actually the norm these days for 1031 to start in one state and end in another. So the location of your QI shouldn't be that big of a deal.
There are a number of QIs like us even right here on BP that you can vet using their profile page and references. the really nice thing about BP is that you can actually talk to clients who have worked with the QI to see how their experience was.
The 1031 Investor5137 Reviews
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Nicholas Zaharevich
Rental Property Investor · Spanaway, WA · Member since 2016 · 82 posts · 41 votes
2y
Quote from @Andrea Lauritzen:

Quote from @Nicholas Zaharevich:

@Andrea Lauritzen I 100% agree! Washington State and especially the city of Tacoma are making this area a less desirable area to invest in. On top of that, there's a bill working it's way through the state to add an additional sales tax on real estate. We own and manage several rentals across the state an will also be looking for opportunities to 1031 exchange into more landlord friendly states with better price points.

I just spent a few months out near Kansas City, MO and Leavenworth, KS. Loved the area!

I'm happy to cheer about my experience out there, and always like meeting up with other investors in the Tacoma area.

Nick

We are considering doing a 1031 to get started in the Midwest - do you have any tips or local firms you recommend who can do out of state 1031's?

Hopefully soon we can add Midwest investor to the real estate accomplishments list!!

As a matter of fact I do! I have two that you can reach out to. Martin Burns (253) 507-5586 or Ed McFerran (253) 471-1200. Both are real estate attorneys in the Tacoma area. When you're ready, I'd be happy to help in any way I can.
0 Reply
Rick Albert
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
2y
There is so much you can do that it would be difficult to do it all.
When I have thought about investing in a new market, I looked at all the properties available and did drive bys. That helped me understand why prices were they way they were in those respective areas. It also gave me a basic understanding of what neighborhoods to invest in.
1 Reply
Jake KnightPro Member
Property Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
2y
I would arrange meetings with local agents/property managers for your target markets. They'll be able to advise you on areas to explore. Sounds like a fun trip either way! let me know if you need any advise/information on Indy.
0 Reply
Jake KnightPro Member
Property Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
2y
Also - April - June are great times to visit the Midwest - weather is reasonable and that is easily the hottest time of the year for our real estate market!
0 Reply
Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
2y
We have clients in Tacoma that are in the same boat, they've been investing in Idaho since it's so close and it's a VERY landlord friendly state.
0 Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
@Andrea Lauritzen why didn't Detroit make your list?
Volkswagen Scout Brand investing $11M in Detroit, 200 new jobs

https://www.teslarati.com/volkswagen-scout-11-million-detroit-investment/

Hotel Added to Hudson Site, total over $1.4B

https://www.detroitnews.com/story/business/2023/11/02/hudsons-site-hotel-plans-move-ahead-as-city-issues-permit/71426631007/

Detroit west side Dexter Neighborhood Receives $21.5M

https://www.clickondetroit.com/news/local/2023/11/01/neighborhood-on-detroits-west-side-receives-more-than-215m-in-investments/

Norway’s Nel Hydron investing $400M, 517 new jobs

https://businessfacilities.com/nel-hydrogen-will-build-400m-gigafactory-in-southeast-michigan#:~:text=In%20Southeast%20Michigan-,Nel%20Hydrogen%20Will%20Build%20%24400M%20Gigafactory%20In%20Southeast%20Michigan,green%20hydrogen%20using%20electrolyzer%20technology.

Chase invests $200M in Detroit

https://www.axios.com/2023/09/28/detroit-rebound-jp-morgan-investment

Gilbert Foundation invests $439M in Detroit

https://www.henryfordmsu.org/news/september-2023/gilbert-family-foundation-announces-nick-gilbert-neurofibromatosis-research-institute

Bollinger Motors investing $44M, 237 new jobs

https://michauto.org/bollinger-motors-plans-44m-metro-detroit-investment/

New Detroit Developments to Be Excited About

https://www.metrotimes.com/detroit/15-new-detroit-developments-to-be-excited-about-photos/Slideshow/32734721/32735392

BorgWarner Investing $20.6M, 186 new jobs

https://www.crainsdetroit.com/auto-suppliers/borgwarner-invest-206-million-create-186-jobs

3 International Companies Choose Detroit

https://www.detroitregionalpartnership.com/international-investment-comes-to-detroit-region/

District Detroit $1.5B Development, 12,000 temp jobs, 6,000 new jobs
https://www.detroitnews.com/story/business/2022/11/15/district-detroit-1-5b-development-to-include-housing-retail-hotels/69649853007/

6 New Residential Developments in Detroit

https://detroitisit.com/6-new-residential-developments-in-detroit-to-know-about/

$2.5B New Center by Henry Ford Health, Pistons owner and Michigan State University
https://www.clickondetroit.com/news/local/2023/02/08/incredible-investment-in-our-city-25b-detroit-neighborhood-redevelopment-to-begin-in-2024/

$300M Huntington Place Renovations & New Detroit Hotel

https://www.crainsdetroit.com/real-estate/huntington-place-renovations-new-hotel-deal-reached
Logical Property Management4.9454 Reviews
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0 Reply
Richard Miller
Real Estate Agent · Tacoma, WA · Member since 2019 · 53 posts · 20 votes
2y
@Nicholas Zaharevich
Hey Nick! I live around that area also (Puyallup) and just closed on my first rental. I would love to meet up sometime to talk real estate if you have a chance.
1 Reply
Cody Smith
Member since 2022 · 2 posts · 1 vote
2y
Quote from @Samuel Diouf:

That's a great idea. I can send you a graded map of Ohio you could use as a reference on your journey!

Hi Samuel, I would love to get a copy of that map as well! Thanks
0 Reply
Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
2y
@Andrea Lauritzen
If you are going to be in Ohio you should check out Columbus and Cleveland
[email protected]614-412-4565
Reafco-556 Reviews
View Page
3 Reply
Peter Dorinsky
Real Estate Agent · Columbus, OH · Member since 2020 · 149 posts · 193 votes
2y
Quote from @Andrea Lauritzen:

We have a few rentals in our town (Tacoma, WA). Getting frustrated with the extreme laws and ready to go to a different area. We have a road trip planned to the midwest/south (Kansas City, St. Louis, Indianapolis, Cincinnati, Louisville, Nashville). We’ve decided to turn this trip into exploring the market over there.
Looking for advice on what we should do in preparation and areas we should focus on/avoid.
Connecting with local investor friendly agents that are familiar with the areas you're visiting would be a great way to get an overview of those markets. Hopefully they'd be willing to walk neighborhoods with you as well. If you're coming to Ohio I'd also recommend checking out Columbus and Cleveland!
2 Reply
Cora Gilmore
Member since 2023 · 8 posts · 4 votes
2y
Quote from @Samuel Diouf:

That's a great idea. I can send you a graded map of Ohio you could use as a reference on your journey!

I was just talking about looking in OH since I have a bunch of family there. Would love a copy of your graded map:) as well please.
0 Reply
Andrea Lauritzen
OP
Member since 2024 · 13 posts · 14 votes
2y
Quote from @Dave Foster:

@Andrea Lauritzen, Most full-service 1031 QI firms will all work nationally. A 1031 exchange is performed the same in all states since it is a federal statute. And its actually the norm these days for 1031 to start in one state and end in another. So the location of your QI shouldn't be that big of a deal.
There are a number of QIs like us even right here on BP that you can vet using their profile page and references. the really nice thing about BP is that you can actually talk to clients who have worked with the QI to see how their experience was.

Thank you for this tip! If we end up going the 1031 route, this is such a great resource.
0 Reply
Andrea Lauritzen
OP
Member since 2024 · 13 posts · 14 votes
2y
Quote from @Nicholas Zaharevich:

Quote from @Andrea Lauritzen:

Quote from @Nicholas Zaharevich:

@Andrea Lauritzen I 100% agree! Washington State and especially the city of Tacoma are making this area a less desirable area to invest in. On top of that, there's a bill working it's way through the state to add an additional sales tax on real estate. We own and manage several rentals across the state an will also be looking for opportunities to 1031 exchange into more landlord friendly states with better price points.

I just spent a few months out near Kansas City, MO and Leavenworth, KS. Loved the area!

I'm happy to cheer about my experience out there, and always like meeting up with other investors in the Tacoma area.

Nick

We are considering doing a 1031 to get started in the Midwest - do you have any tips or local firms you recommend who can do out of state 1031's?

Hopefully soon we can add Midwest investor to the real estate accomplishments list!!

As a matter of fact I do! I have two that you can reach out to. Martin Burns (253) 507-5586 or Ed McFerran (253) 471-1200. Both are real estate attorneys in the Tacoma area. When you're ready, I'd be happy to help in any way I can.

I had not considered using a law firm to help with a 1031 exchange. I've heard great things about both of these attorneys and will keep them in mind!
0 Reply
Andrea Lauritzen
OP
Member since 2024 · 13 posts · 14 votes
2y
Quote from @Michael Smythe:

@Andrea Lauritzen why didn't Detroit make your list?
Volkswagen Scout Brand investing $11M in Detroit, 200 new jobs

https://www.teslarati.com/volkswagen-scout-11-million-detroit-investment/

Hotel Added to Hudson Site, total over $1.4B

https://www.detroitnews.com/story/business/2023/11/02/hudsons-site-hotel-plans-move-ahead-as-city-issues-permit/71426631007/

Detroit west side Dexter Neighborhood Receives $21.5M

https://www.clickondetroit.com/news/local/2023/11/01/neighborhood-on-detroits-west-side-receives-more-than-215m-in-investments/

Norway’s Nel Hydron investing $400M, 517 new jobs

https://businessfacilities.com/nel-hydrogen-will-build-400m-gigafactory-in-southeast-michigan#:~:text=In%20Southeast%20Michigan-,Nel%20Hydrogen%20Will%20Build%20%24400M%20Gigafactory%20In%20Southeast%20Michigan,green%20hydrogen%20using%20electrolyzer%20technology.

Chase invests $200M in Detroit

https://www.axios.com/2023/09/28/detroit-rebound-jp-morgan-investment

Gilbert Foundation invests $439M in Detroit

https://www.henryfordmsu.org/news/september-2023/gilbert-family-foundation-announces-nick-gilbert-neurofibromatosis-research-institute

Bollinger Motors investing $44M, 237 new jobs

https://michauto.org/bollinger-motors-plans-44m-metro-detroit-investment/

New Detroit Developments to Be Excited About

https://www.metrotimes.com/detroit/15-new-detroit-developments-to-be-excited-about-photos/Slideshow/32734721/32735392

BorgWarner Investing $20.6M, 186 new jobs

https://www.crainsdetroit.com/auto-suppliers/borgwarner-invest-206-million-create-186-jobs

3 International Companies Choose Detroit

https://www.detroitregionalpartnership.com/international-investment-comes-to-detroit-region/

District Detroit $1.5B Development, 12,000 temp jobs, 6,000 new jobs
https://www.detroitnews.com/story/business/2022/11/15/district-detroit-1-5b-development-to-include-housing-retail-hotels/69649853007/

6 New Residential Developments in Detroit

https://detroitisit.com/6-new-residential-developments-in-detroit-to-know-about/

$2.5B New Center by Henry Ford Health, Pistons owner and Michigan State University
https://www.clickondetroit.com/news/local/2023/02/08/incredible-investment-in-our-city-25b-detroit-neighborhood-redevelopment-to-begin-in-2024/

$300M Huntington Place Renovations & New Detroit Hotel

https://www.crainsdetroit.com/real-estate/huntington-place-renovations-new-hotel-deal-reached

Trip was already planned, we are adding looking at real estate to the trip as an "aha moment" since there was a major change in our local laws. Will for sure keep Detroit in mind for future opportunities given how that market is going!
0 Reply
Tanner Lewis
Lender · Austin, TX · Member since 2021 · 448 posts · 441 votes
2y
It really depends on what you are looking for. Some of those markets are primed for mainly cash flow, some offer a good middle ground between cash flow and appreciation. Your market should fit your goals and then refine your investment strategy based on what other investors are doing in the area.
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