Looking for out of state markets

[Paul Mitchell]

Hello- I am a fairly new investor from the Northeast and looking to invest out of state. Ideally looking for single family or up to 4 unit multifam that can rent long term or medium term. Open to markets in the midwest, south, and northeast. Up to $100k avl for downpayment. Any advice on specific markets would be much appreciated. I am also open to partnering on perspective deals. 

Thanks!

[Matthew Irish-Jones]

Quote from @Paul Mitchell:

Hello- I am a fairly new investor from the Northeast and looking to invest out of state. Ideally looking for single family or up to 4 unit multifam that can rent long term or medium term. Open to markets in the midwest, south, and northeast. Up to $100k avl for downpayment. Any advice on specific markets would be much appreciated. I am also open to partnering on perspective deals. 

Thanks!

 Every agent on here will tell you why their market is special.  You should clarify what your goals and risk tolerance is to be able to better narrow down what you want out of investing.

You should pick a market where you can get the most bang for your buck, while using risk as a counter balance.  You can get 10 units in Niagara Falls NY with 100K leveraged, that does not mean you are going to get a return, as its a high risk area.

You can probably not even afford to get into a big city with 100K, so you will be left with mid to small size cities.  Once you have narrowed down average home sale price for a multifamily, analyzed risk and the state and city level you will probably find yourself in one of the rust belt cities.

At that point the difference between Buffalo, Cleveland, Detroit, etc... are not that big of a deal.  What is a very big deal is picking the right team.  A great team will get you a return in pretty much any market.  While a crap team will ruin a good investment in any market. 

Being an out of state investor the team choice is more important than the market choice.  

Lastly, you need an investing criteria.  I use Location, Asset Condition, Returns, in that order.  If I am getting a great asset, in a great location, I will forgo great returns.  

What I will NEVER do is get great returns on a crap asset in a crap location.  Those are what we call spreadsheet returns.  They are very dangerous and should be avoided at all cost.  

Great assets in great locations always sell.  Don't forget you need an exit plan.