investing out of state

Fort Lauderdale, Florida
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investing out of state

Brandon MorganPro Member
Member since 2023 · 124 posts · 132 votes

hey all I am new to Real estate and have been trying to buy a property for the last 2 years but it is not working out. I live in the New Jersey New York area and prices continue to climb and they do not look like they are falling any time soon. Recently I have been thinking about investing out of the state . I have been thinking Florida or somewhere else down south could be a good idea. Does anyone have any experience or advise with this? I make a little over 100k a year and have 50k currently ready for a down payment. any insight would be helpful.

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Tanner Lewis
Lender · Austin, TX · Member since 2021 · 447 posts · 441 votes
2y

The south is a pretty hot market, but it really depends on what your goals and strategy are. I'm seeing a lot of BRRRRs and AirBnBRRRs in FL. But the questions I would ask yourself before finding a market are: am I looking to prioritize cash flow, appreciation, or a mix of the two? What strategy am I looking to do: flip, BRRRR, LTR, STR, small multifamily, etc? Once you figure out the answers to these two questions, you can start to narrow down what markets make sense for you based on the FRED economic data: https://fred.stlouisfed.org/

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  • Ray Hage
    Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    2y
    Quote from @Brandon Morgan:

    hey all I am new to Real estate and have been trying to buy a property for the last 2 years but it is not working out. I live in the New Jersey New York area and prices continue to climb and they do not look like they are falling any time soon. Recently I have been thinking about investing out of the state . I have been thinking Florida or somewhere else down south could be a good idea. Does anyone have any experience or advise with this? I make a little over 100k a year and have 50k currently ready for a down payment. any insight would be helpful.

    NJ/NY is crazy expensive so I'm not surprised you're looking out of state. I am agent in Fort Lauderdale and invest here as well (mainly small MFs and a house hack). 50k is more than enough to get started. Is there a particular area of Florida you're considering? I can advise on south FL and get you into the right deal here.
    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    2y

    Hi @Brandon Morgan, are you looking to purchase as a primary residence or investment property? 50k might not be enough for an investment down here, but for a primary, that shouldn't be an issue. Do you work remotely? That will be a requirement to buy as a primary unless you are getting a relocation done with your current employer or finding a new job, if not able to work remotely. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
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    0Reply
  • Peter Dorinsky
    Real Estate Agent · Columbus, OH · Member since 2020 · 149 posts · 193 votes
    2y
    Quote from @Brandon Morgan:

    hey all I am new to Real estate and have been trying to buy a property for the last 2 years but it is not working out. I live in the New Jersey New York area and prices continue to climb and they do not look like they are falling any time soon. Recently I have been thinking about investing out of the state . I have been thinking Florida or somewhere else down south could be a good idea. Does anyone have any experience or advise with this? I make a little over 100k a year and have 50k currently ready for a down payment. any insight would be helpful.

    Hey Brandon, have you considered house-hacking in your local market? It's a great way to get a foot in the door and it provides more lending options as well if you owner-occupy. If plan to invest out of state it'll be crucial to develop your core-4: https://www.biggerpockets.com/blog/core-four-real-estate-tea...
    Having a solid team around you will be fundamental to your success. Have you considered any markets in the Midwest? The Midwest markets offer a lower barrier to entry as they provide lower home prices and taxes, a lot of these markets are landlord friendly as well. If possible I'd also recommend visiting the market you plan to invest in to familiarize yourself with area and connect with locals. Happy to connect and chat more if you have questions. Best of luck!
    0Reply
  • Scott Schnabel
    Real Estate Agent · Canton, OH · Member since 2024 · 37 posts · 28 votes
    2y

    You need good "boots on the ground".  Build a team of people to help; an agent who isn't trying to talk you into every opportunity and knows how to analyze a deal; a lender who offers you all the possibilities; an inspection company that can get things done quickly; finally a property management company that comes with good referrals.

    3Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Brandon Morgan not sure how far your income & savings will go in Florida.

    You might want to consider the Midwest.

    We can answer any questions you have about Metro Detroit!

    Logical Property Management4.9454 Reviews
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  • Nadiyah MalbonBusiness Member
    Realtor · NJ · Member since 2020 · 104 posts · 31 votes
    2y

    I live in NJ and primarily invest out of state. Over the years, I have built local teams ( agents, contractors, property management, inspectors) that serve as my eyes and ears.  I conduct virtual tours and rely on their expertise when making offer and rehabbing.  It can absolutely be done.

    908-663-8996
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    4Reply
  • Tanner Lewis
    Lender · Austin, TX · Member since 2021 · 447 posts · 441 votes
    2y

    The south is a pretty hot market, but it really depends on what your goals and strategy are. I'm seeing a lot of BRRRRs and AirBnBRRRs in FL. But the questions I would ask yourself before finding a market are: am I looking to prioritize cash flow, appreciation, or a mix of the two? What strategy am I looking to do: flip, BRRRR, LTR, STR, small multifamily, etc? Once you figure out the answers to these two questions, you can start to narrow down what markets make sense for you based on the FRED economic data: https://fred.stlouisfed.org/

    9Reply
  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
    2y

    I would be delighted to connect with you and discuss the exciting opportunities and profitable properties in the Kansas City market.

    [email protected]
    0Reply
  • Liam Maher
    Miami, FL · Member since 2022 · 60 posts · 39 votes
    2y

    Here's a list of some of the best cities in the country for cash-flow, landlord-friendliness and appreciation

    2Reply
  • Jacopo Iasiello
    Investor · Miami Beach, FL · Member since 2017 · 362 posts · 109 votes
    2y

    Hi Brandon, Welcome here, May I know which exactly part of Florida are you interested?

    0Reply
  • Tim J.
    Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
    2y
    As a new investor you are adding a bunch of risk by investing out of your area.  I think it is probably the best option for you but find a seasoned investor to help you thru the process.  

    I would probably stay away from FL - there seems to be some shakiness in insurance policies and pricing - but I am not an expert on that.  

    Keep looking at the threads on this site regarding cash-flowing areas and OOS investing.  There are a number of places that probably meet your needs.  Vet the deals and your team very well.  make sure you have a solid PM.
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Brandon Morgan

    stay closer to home - you have markets within a couple of hours that are lower cost

    no reason to try in FL, OH - very risky without the right team in place

    1Reply
  • Brandon MorganPro Member
    OP
    Member since 2023 · 124 posts · 132 votes
    2y
    Quote from @Nadiyah Malbon:

    I live in NJ and primarily invest out of state. Over the years, I have built local teams ( agents, contractors, property management, inspectors) that serve as my eyes and ears.  I conduct virtual tours and rely on their expertise when making offer and rehabbing.  It can absolutely be done.


     where out of state have you went? I recently started looking at Pennsylvania. 

    0Reply
  • Brandon MorganPro Member
    OP
    Member since 2023 · 124 posts · 132 votes
    2y
    Quote from @Nicholas L.:

    @Brandon Morgan

    stay closer to home - you have markets within a couple of hours that are lower cost

    no reason to try in FL, OH - very risky without the right team in place

    I am thinking about trying Pennsylvania since its not too far away. do you know about Pennsylvania? the prices seem to be way better than jersey. 
    0Reply
  • Nadiyah MalbonBusiness Member
    Realtor · NJ · Member since 2020 · 104 posts · 31 votes
    2y
    Quote from @Brandon Morgan:
    Quote from @Nadiyah Malbon:

    I live in NJ and primarily invest out of state. Over the years, I have built local teams ( agents, contractors, property management, inspectors) that serve as my eyes and ears.  I conduct virtual tours and rely on their expertise when making offer and rehabbing.  It can absolutely be done.


     where out of state have you went? I recently started looking at Pennsylvania. 

    I invest in PA, MI, and TX. 
    908-663-8996
    Nadiyah Malbon Group (NMG) 4.941 Reviews
    WebsiteView Page
    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Brandon Morgan

    yes, check out the Lehigh Valley.  I don't personally invest there but I know folks who do.

    spend some time there, go to REIA meetings, meet people, do non-Internet things.

    1Reply
  • Brandon MorganPro Member
    OP
    Member since 2023 · 124 posts · 132 votes
    2y
    Quote from @Nadiyah Malbon:
    Quote from @Brandon Morgan:
    Quote from @Nadiyah Malbon:

    I live in NJ and primarily invest out of state. Over the years, I have built local teams ( agents, contractors, property management, inspectors) that serve as my eyes and ears.  I conduct virtual tours and rely on their expertise when making offer and rehabbing.  It can absolutely be done.


     where out of state have you went? I recently started looking at Pennsylvania. 

    I invest in PA, MI, and TX. 

     Oh tell me about PA its not too far from where I live, about over an hour so I can definitely invest there. so far Ive been looking at the Scranton area. 

    0Reply
  • Joseph Stern
    Investor · Tampa, FL · Member since 2020 · 287 posts · 152 votes
    2y

    Hey Brandon, I currently live and invest in Tampa and prices are still attractive here. Feel free to reach out and I can give you some insight on my experience investing here.

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    I think Allentown and Scranton both have potential.

    1Reply
  • Luis Astudillo
    Member since 2024 · 23 posts · 8 votes
    2y
    Quote from @Brandon Morgan:

    hey all I am new to Real estate and have been trying to buy a property for the last 2 years but it is not working out. I live in the New Jersey New York area and prices continue to climb and they do not look like they are falling any time soon. Recently I have been thinking about investing out of the state . I have been thinking Florida or somewhere else down south could be a good idea. Does anyone have any experience or advise with this? I make a little over 100k a year and have 50k currently ready for a down payment. any insight would be helpful.


     Hey Brandon,

    How are you? I am a mortgage broker, I saw most of the replies, have you been pre-qualified?, second home could be a start, $50K for downpayment may not be enough. Now, if you are getting a job in Florida doing the same thing you are doing then you would only need 3% to 5% to purchase a primary home; assuming that your credit score is over 620. Shoot me an email to discuss your real estate needs. 

    0Reply
  • Randall Jones
    Denver co · Member since 2024 · 14 posts · 2 votes
    2y
    Quote from @Brandon Morgan:

    hey all I am new to Real estate and have been trying to buy a property for the last 2 years but it is not working out. I live in the New Jersey New York area and prices continue to climb and they do not look like they are falling any time soon. Recently I have been thinking about investing out of the state . I have been thinking Florida or somewhere else down south could be a good idea. Does anyone have any experience or advise with this? I make a little over 100k a year and have 50k currently ready for a down payment. any insight would be helpful.

    Ever thought about commercial investing that can be profitable overtime especially industrial ownership/leasing 

    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    2y

    Investing OOS is neither easy nor cheap. Every step from buying to repais and renting is more difficult if you are not there. If you can't invest in your back yard, pick a market that is close by and you can drive or at the very least have an easy flight to. Ideally you know the city, have family in town or used to live there. And yes, you need a good team. All of those are more important than finding the "best" market in the US.

    The Midwest gets a lot of attention lately, but that is not without challenges. Milwaukee has been very competitive, anything decent sells with multiple offers, the houses are old and OOS investors often don't understand how delapitated the place is they just bought. Buying a quality property is key to long term success (not just great cash flow according to a spreadsheet), otherwise capex will exceed cash flow over time.

    I have a friend who is very excited about FL and wants me to take a look. I am sceptical seeing more and more insurance companies pulling out of FL, leaving a state sponsored program the only affordable option - until the tax payers are tired of funding it.   

    2Reply
  • Joseph Guzzardi Jr
    Rental Property Investor · Member since 2019 · 411 posts · 148 votes
    2y

    @Brandon Morgan There's a reason why NJ and NY markets continue to rise. These are historically strong markets with solid appreciation. I strongly recommend researching an out of state market area extensively. The Florida market is dealing with crazy insurance issues right now. Other markets may seem to cashflow a little better but compare the rents and price and see if it makes sense.

    0Reply
  • Nadeem Alamgir
    Real Estate Agent · Member since 2023 · 831 posts · 577 votes
    2y

    Hey Brandon, the mid-market is pretty hot and affordable. Check out Zillow hottest housing market of 2024: https://www.axios.com/2024/01/10/zillow-ranking-hottest-real…

    Cleveland is a great market to focus on for cash flow. It is landlord-friendly, and specific pockets have gone upwards of 2-4x in the last 5-10 years.

    2Reply
  • Gilberto Rodriguez
    Investor · San Antonio, TX · Member since 2023 · 8 posts · 7 votes
    2y

    Hey, I have purchased two properties and closing on another one next week, all in other States, and I started last July, and they are doing great! I recommen connecting with @Zach Lemaster, CEO and owner of Rent to Retirement. Him and his team are amaizing. Cheers, Gil!

    3Reply
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