New to Out of State Investing

Starting Out
2yFollow

New to Out of State Investing

Annwar Matani
Investor 路 NJ 路 Member since 2023 路 19 posts 路 31 votes

Hi everyone. I am a new out of state investor so I feel like my head is all over the place. I have read the BRRR book by David Greene and follow the forums, and listen to the podcasts. I feel like I have an idea but I think I am stuck in analysis paralysis at this point LOL. Also extremely nervous.

I am looking at different markets but I am interested in the Cleveland Market for various reasons, but most of all the low barrier of entry. I am from NJ so our market is more expensive. I have a primary residence in NJ that has equity, I have liquid cash around $50k, and my credit score is 740. I am debating on whether to just apply for a loan or use my equity/ cash to buy my first property? The strategy I would like to BRRR because I do want to scale in the long run. I am looking for cash flow.

 I am also trying to establish my team, I have a good realtor who is sending me properties, I was connected to a lender but I am open to suggestions/ recommendations for lenders, property managers, project manager (is this common?)  and (the one that makes me the most nervous) a RELIABLE GC. 

Where should I start? Thank you in advance. 

5Reply
64 views

Most Popular Reply

Min ZhangBusiness Member
Real Estate Agent 路 Member since 2022 路 1k+ posts 路 1k+ votes
2y

hey Annwar, if you're looking on Cleveland market, I suggest look for turnkey properties. I personally love the Cleveland market for its cash flow. I do have clients buy in those area, generally anywhere from 8-12% COC return. As far as Columbus goes, it's more of an appreciation play. You should check it if you're looking to BRRRR.

I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!

[email protected]614-412-2912
Reafco.512 Reviews
View Page
3Reply
See this reply in the discussion

17 Replies

Jump to latestLatest
  • Mike PaolucciBusiness Member
    Realtor 路 Columbus Cleveland Dayton, OH 路 Member since 2022 路 501 posts 路 553 votes
    2y

    Hey @Annwar Matani congrats on taking your first steps and welcome to BP! 

    I started off my investment journey the same way in 2021 while living in CA. Happy to share my OOS investing experience. 

    If this will be your first investment property, I would recommend starting off with a turnkey single-family, rather than a full on BRRRR.
    Reason being, that is more advanced strategy and it's very easy get in over your head quickly if you don't know what you're doing. RE investing isn't a sprint, its a marathon. You will also learn A LOT from your first property just by owning it and you'll want to mitigate your financial risks and get into good habits ASAP.  Once you have more experience and have established trust in your team, then have at it!! BRRRR all day long!!! 

    Cleveland is a great market for cashflow. Our brokerage does a lot of business out there. If that is your only priority then that is a great market to look at. If you're open to a mix of cashflow and appreciation, check out Columbus, OH. 

    Let me know if you have any questions & good luck on your journey! 

    [email protected]614-892-9184
    Reafco - Mike Paolucci 512 Reviews
    WebsiteView Page
    2Reply
  • Chris Kersey
    Real Estate Agent 路 Houston, TX 路 Member since 2022 路 135 posts 路 84 votes
    2y

    I 2nd what @Mike Paolucci mentioned about starting with a turn key property. I bought a turn key rental for one of my first and I learned a tremendous amount of knowledge from jumping in and making a move. This was my starting point to really get into the game and not only see how things work first hand, but it also inspired me to keep going. Good Luck!

    1Reply
  • Nader Shariff
    Detroit, MI 路 Member since 2020 路 150 posts 路 68 votes
    2y

    If you are going to invest out of state, I strongly recommend finding the right team in the market you are going to be investing in first. Your team is the most essential piece of the puzzle. You do not have to find the perfect team, as that doesn't exist. Look for a transparent and honest team that will give you all the pros and cons of the market. Having the right expectations set before investing can help you make an educated decision on if the investment is worth making for you. 

    1Reply
  • Shawn McenteerBusiness Member
    Realtor 路 Boonton Township, NJ 路 Member since 2013 路 2k+ posts 路 1k+ votes
    2y

    Hi @Annwar Matani I'd start with your realtor. I would only work with an agent that is doing or has done what it is you want to do, first hand experience is absolutely crucial in this.  Your agent should have contacts to make this process smooth.

    Have you considered house hacking in new jersey?  For sure an unfair advantage for those looking to acquire multi family properties quick in NJ.

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
    1Reply
  • Annwar Matani
    OP
    Investor 路 NJ 路 Member since 2023 路 19 posts 路 31 votes
    2y

    @Mike Paolucci Thank you Mike for the advice and appreciate the transparency! I will consider looking into turnkey properties for my first OOS investment.

    0Reply
  • Annwar Matani
    OP
    Investor 路 NJ 路 Member since 2023 路 19 posts 路 31 votes
    2y

    Thanks @Chris Kersey, appreciate it 

    0Reply
  • Ursula Lovings
    Member since 2023 路 11 posts 路 13 votes
    2y

    Hi @Annwar Matani. Unfortunately, I don't have any advice.  I'm just here to say I'm in a very similar position as you, living in NYC.  Also considering Ohio, most likely Columbus.  The leap to OOS investing is scary, but hoping to do it soon.

    3Reply
  • Travis Biziorek
    Investor 路 Arroyo Grande, CA 路 Member since 2014 路 1k+ posts 路 1k+ votes
    2y

    Hey Annwar, with $50k cash and some equity to potentially play with I'd look to do BRRRR's with cash purchases.

    That said, it will come with its own set of challenges. The largest will be finding a strong team to help you through that strategy.

    If you use the $50k for down payments you're stuck once that money is used up. If you can pull capital together to do BRRRR's you'll be able to keep going and building your portfolio.

    In invest in Detroit from California. It's extremely rewarding once you have a strong team behind you.

    1Reply
  • Taz Zettergren
    Real Estate Agent 路 Memphis, TN 路 Member since 2019 路 365 posts 路 264 votes
    2y

    @Annwar Matani welcome to the forums and congrats on the first post! Like others have mentioned I would recommend getting your feet wet with a turnkey if you're completely new to real estate investing. It's a safer play for the first investment and you can see how the process goes then scale from there whether it be yourself or through the passive route. I know David's book is great about BRRR'ing but it's a lot to tackle if you're trying to do it out of state without a team in place.

    I will say if you have a good agent they will have contacts for GC's and property management making it much more passive than a typical project will be. You should check out the Memphis market, it's a great place for passively investing or BRRR'ing. Feel free to reach out if you have any questions. Best of luck on the journey! Let us know how it goes

    2Reply
  • Min ZhangBusiness Member
    Real Estate Agent 路 Member since 2022 路 1k+ posts 路 1k+ votes
    2y

    hey Annwar, if you're looking on Cleveland market, I suggest look for turnkey properties. I personally love the Cleveland market for its cash flow. I do have clients buy in those area, generally anywhere from 8-12% COC return. As far as Columbus goes, it's more of an appreciation play. You should check it if you're looking to BRRRR.

    I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!

    [email protected]614-412-2912
    Reafco.512 Reviews
    View Page
    3Reply
  • David Avery
    Flipper/Rehabber 路 Phoenix Arizona 路 Member since 2020 路 1k+ posts 路 686 votes
    2y

    1-Top Notch Realtor 

    2-Investor minded Contractor and Handyman

    3-Some Good luck. 馃憤 

    4-Wholesalers have some great deals. 

    Back to your Realtor. If he /,she understands remodeling and good deals he/ she will send them your way.

    These are the starters.

    Good luck 

    Dave

    0Reply
  • Simon Ashbaugh
    Realtor 路 Columbus Ohio, Cleveland Ohio 路 Member since 2022 路 849 posts 路 830 votes
    2y

    Hey Annwar, welcome to BiggerPockets! Cleveland's strong rental market driven by a growing population makes it a great starting point ensuring a steady income stream. I have a list of property managers, contractors and lenders who have assisted several of my investors in acquiring properties successfully. I'd love to help out, let's connect!

    0Reply
  • James Wise
    Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 31k+ posts 路 20k+ votes
    2y
    Quote from @Annwar Matani:

    Hi everyone. I am a new out of state investor so I feel like my head is all over the place. I have read the BRRR book by David Greene and follow the forums, and listen to the podcasts. I feel like I have an idea but I think I am stuck in analysis paralysis at this point LOL. Also extremely nervous.

    I am looking at different markets but I am interested in the Cleveland Market for various reasons, but most of all the low barrier of entry. I am from NJ so our market is more expensive. I have a primary residence in NJ that has equity, I have liquid cash around $50k, and my credit score is 740. I am debating on whether to just apply for a loan or use my equity/ cash to buy my first property? The strategy I would like to BRRR because I do want to scale in the long run. I am looking for cash flow.

     I am also trying to establish my team, I have a good realtor who is sending me properties, I was connected to a lender but I am open to suggestions/ recommendations for lenders, property managers, project manager (is this common?)  and (the one that makes me the most nervous) a RELIABLE GC. 

    Where should I start? Thank you in advance. 


     Saw you were thinking about Cleveland. Cleveland can be tricky. Before you spend any money here in Cleveland give The Ultimate Guide to Grading Cleveland Neighborhoods a read. It should help you lower your risks.

    1Reply
  • Dean HarrisBusiness Member
    Real Estate Agent 路 Memphis, TN 路 Member since 2015 路 1k+ posts 路 1k+ votes
    2y

    I completed 16 BRRRR's in Mephis, TN last year. This has been my main focus and strategy for the last several years. I look to source these properties everyday and Im happy to share my expeirences with you

    Good Luck!

    CrestCore Realty4.713 Reviews
    View Page
    0Reply
  • Lane Kawaoka
    Rental Property Investor 路 Honolulu, HAWAII (HI) 路 Member since 2011 路 4k+ posts 路 2k+ votes
    2y

    @Annwar Matani be careful with BRR you can magnify returns but what comes more returns implicitly comes with more risk. I personally just bought buy hold and did not do much value add my first 7 years investing.

    https://www.biggerpockets.com/member-blogs/7810/90789-the-co...

    0Reply
  • David Fals
    Member since 2023 路 37 posts 路 32 votes
    2y
    Quote from @Annwar Matani:

    Hi everyone. I am a new out of state investor so I feel like my head is all over the place. I have read the BRRR book by David Greene and follow the forums, and listen to the podcasts. I feel like I have an idea but I think I am stuck in analysis paralysis at this point LOL. Also extremely nervous.

    I am looking at different markets but I am interested in the Cleveland Market for various reasons, but most of all the low barrier of entry. I am from NJ so our market is more expensive. I have a primary residence in NJ that has equity, I have liquid cash around $50k, and my credit score is 740. I am debating on whether to just apply for a loan or use my equity/ cash to buy my first property? The strategy I would like to BRRR because I do want to scale in the long run. I am looking for cash flow.

     I am also trying to establish my team, I have a good realtor who is sending me properties, I was connected to a lender but I am open to suggestions/ recommendations for lenders, property managers, project manager (is this common?)  and (the one that makes me the most nervous) a RELIABLE GC. 

    Where should I start? Thank you in advance. 


    Hi, I'm in a similar situation as you. NJ-based, got some cash, purchased a condo almost two years ago, and need to invest ASAP but so scared of out-of-state! Turnkey might be the best to learn the ropes. 

    0Reply
  • James Wise
    Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 31k+ posts 路 20k+ votes
    2y
    Quote from @Min Zhang:

    hey Annwar, if you're looking on Cleveland market, I suggest look for turnkey properties. I personally love the Cleveland market for its cash flow. I do have clients buy in those area, generally anywhere from 8-12% COC return. As far as Columbus goes, it's more of an appreciation play. You should check it if you're looking to BRRRR.

    I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!


     If you're gonna go with Cleveland as your market, you're going to want to read The Ultimate Guide to Grading Cleveland Neighborhoods. Cleveland is a very tricky market for out of state investors. The guide was created to help lower the learning curve and reduce risks to out of state investors coming here.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free