Have 25k for downpayment on out of state rental properties.

Oakland, CA · Member since 2017 · 9 posts · 3 votes

Hello everyone, I live in the Oakland CA and am looking to get into buying and holding rental properties probably outside of California for a passive cash flow. I am obviously not looking to make any serious gains on my first rental (a few hundreds in positive cash flow would be nice) I really just want to get my feet wet and get a understanding of different markets and good deals. I've look at properties in Ohio, Dallas and Vegas so far. I am looking for any knowledge tips for my goal. Thank you.

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Ali Boone

Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes

Hey Adekunle. I'm down in LA and started out, and am still doing, exactly what you are talking about. It can be a great way to get your feet wet and with less capital to start than anywhere in CA.

Ohio, it depends on what city specifically. Dallas used to be great but prices there now are higher than before the recession and cash flow has gone more minimal and with a lack of inventory. Vegas has some fundamental issues that make it not a market I've ever wanted to focus on, but even those aside, prices there have already skyrocketed too.

There are several markets out there. A lot of it will depend on your preferences....price range, SFR or MFR, urban or suburban, etc.

Happy to chat markets anytime if you want to reach out!

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Ali Boone
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Hey Adekunle. I'm down in LA and started out, and am still doing, exactly what you are talking about. It can be a great way to get your feet wet and with less capital to start than anywhere in CA.
Ohio, it depends on what city specifically. Dallas used to be great but prices there now are higher than before the recession and cash flow has gone more minimal and with a lack of inventory. Vegas has some fundamental issues that make it not a market I've ever wanted to focus on, but even those aside, prices there have already skyrocketed too.
There are several markets out there. A lot of it will depend on your preferences....price range, SFR or MFR, urban or suburban, etc.
Happy to chat markets anytime if you want to reach out!
3 Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
9y
SE Michigan is a very popular area for what you are looking for.
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Adekunle Betts
OP
Oakland, CA · Member since 2017 · 9 posts · 3 votes
9y
Originally posted by @Ali Boone:

Hey Adekunle. I'm down in LA and started out, and am still doing, exactly what you are talking about. It can be a great way to get your feet wet and with less capital to start than anywhere in CA.
Ohio, it depends on what city specifically. Dallas used to be great but prices there now are higher than before the recession and cash flow has gone more minimal and with a lack of inventory. Vegas has some fundamental issues that make it not a market I've ever wanted to focus on, but even those aside, prices there have already skyrocketed too.
There are several markets out there. A lot of it will depend on your preferences....price range, SFR or MFR, urban or suburban, etc.
Happy to chat markets anytime if you want to reach out!
Hello @Ali Boone ! Thank you for reply. What markets have you been searching in. My price range is anything less than 135k with a stable job market. SFR and either or for urban or suburban. Much success to you and hopefully we both can find what we're looking for!
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Adekunle Betts
OP
Oakland, CA · Member since 2017 · 9 posts · 3 votes
9y
Originally posted by @Joe Villeneuve:

SE Michigan is a very popular area for what you are looking for.
I'll be sure to look into it! Thank you for your reply.
0 Reply
David Sanford
Rental Property Investor · Chester, VA · Member since 2016 · 123 posts · 32 votes
9y
How do you pick a good area to invest in unfamiliar locations? Do you have contacts there that can give you advice? My market is flooded with investors and I think I need to look elsewhere but I don't know how to invest somewhere else. I don't want to buy in d or c neighborhoods.
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Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
9y
Originally posted by @Adekunle Betts:

Hello everyone, I live in the Oakland CA and am looking to get into buying and holding rental properties probably outside of California for a passive cash flow. I am obviously not looking to make any serious gains on my first rental (a few hundreds in positive cash flow would be nice) I really just want to get my feet wet and get a understanding of different markets and good deals. I've look at properties in Ohio, Dallas and Vegas so far. I am looking for any knowledge tips for my goal. Thank you.
It is VERY important that you do your research into the company you are looking to go with (if you go Turnkey) AND the market you are investing in. Some markets, such as Memphis, have been so heavily influenced by the recent swell of investors, it might become saturated pretty soon. If you notice a lot of people talk about it.
You may want to check out:
The Best Types of Markets for Profitable Turnkey Properties
-and-
How to Find the Right Turnkey Real Estate Investment Company for You
Those will really help you in your search and ask some great questions. Good luck!
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Ali Boone
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Sounds good! Everywhere I'm working with now fits that bill if you want to shoot me a direct message and we can chat.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
its a big wide investing world out there currently...
I like Vegas for a few reasons personally even though there is NO turn key there
1. desert air.. maintenance is minimall NO hail no shifting foundations and no sky rocketing property tax's ( as oppossed to Texas were all this is common place.. sky high property tax's shifting foundations Hail ( new roofs think of your deductible) etc etc.
but there are plenty of markets out there.. as much as anything is about PM
but if your in CA and in Oakland I think another good play is parts of Richmond that don't have any rent control. find those..
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Kenneth Mooney
Rental Property Investor · Augusta, GA · Member since 2016 · 348 posts · 171 votes
9y
Send me an e-mail. I'm in a very strong market where you can do exactly what you're talking about.
1 Reply
Tim Debronsky
Full-Time Investor & Agent · Amherst, OH · Member since 2014 · 149 posts · 50 votes
9y
@Adekunle Betts I'm a local investor/agent in Cleveland which offers great buy & hold investment properties that would fit your buying criteria. PM me if you want to learn more about the Cleveland market.
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Trevor Ewen
Rental Property Investor · Weehawken, NJ · Member since 2014 · 1k+ posts · 704 votes
9y
@Adekunle Betts
One thing to think about.
Instead of just picking markets, are there any better cash flow markets where you have a connection, family or otherwise?
Knowing what I know now. I would go with familiarity and ability to build relationships organically over pure numbers for a market. It's one of the reasons we have invested closer to my family in the Richmond, Virginia area. Numbers are not as great as other parts of the country, but I have more resources from the get go.
Just another way to frame the problem. Very few people ever get into the 'best' market on a purse analysis basis. Much better to get the mix of quantitative and qualitative factors.
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James WachobBusiness Member
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
9y
@Adekunle Betts The key is to find a great team! Ideally you would find a company that has everything under one roof. Acquisitions team, renovation crews (fully licensed and insured), Property Mgmt., and a Real Estate Investment Brokerage in case you ever decide to sell.
By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.
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