Out of state Investing Advice

[Alex Meza]

I am in the process of buying my first real estate property and would like it to be a 3-4 unit multifamily property. I want to invest out of California because I am looking for a property that can give me some positive cash flow (at least 15% cash on cash return). I just wanted to know if there is any states or specific areas are  recommend for what I am trying to accomplish.  

[Jay Hinrichs]

@Alex Meza mid west urban core plex's are a high touch and can be a high risk asset. your tenants are paying 300 to 500 in those types of properties not your best tenant pool by a long shot.. this is why most investors that go out of state shoot for those 700 and up rents.. better chance at getting quality tenant. I had one client of mine buy a cheap duplex in INdy for example and it was a nightmare  vacancy terrible tenants  vandalism rehabbed 3 times during his first 2 years of ownership.. finally sold it for a big loss.

If your going out east look at quality first and foremost. the low price point multis are really only appropriate for owners who live there and watch them like a hawk.