Long Island NY · Member since 2017 · 14 posts · 8 votes
Hello,
This is my second post on the PB Forum. I'd like to get more insight, experienced, and intelligent answers more than trying to be sold something. I am from NY and I am looking to do out of state investing. I am looking to purchase a rental property either single family or multi family. Which areas would you say are the best to buy for 2017? Right now I have in mind Kansas City or Indianapolis. I am very new to all of this and I am really trying to learn what investment would be the best. Thank you for anyone that could help!
@Laura Gianiotis those two markets are good from what I've read but continue to search online for articles on top RE markets in 2017. They will give you the names of cities and then you can go verify the demographics of those cities (i.e. population, jobs, future jobs, etc.). I know Tennessee has a lot of cities doing well, Philadelphia is doing better. They change often but it's important to understand WHY, HOW, and WHEN they will become "hot".
As far as being sold something, I would imagine people have told you to take advantage of the BP books, forums, podcasts, webinars, and blogs? If this is the case, listen! I can promise you we have all done it and that is how we grow our knowledge on these topics. If you are being sold on other things (again, not sure what), then you just have to filter in the good and out the bad, this site has much more good than bad (if any from my experience to be honest).
For instance, start with the Real Estate Investing Beginners Guide - it is a free ebook provided by BP. This is a quick 40 page read that outlines all the areas of real estate and will help guide you in the process of learning what you want to accomplish through Real Estate Investing and how to do it. More importantly, it will tell you what NOT to spend your money and time on and how to avoid "guru"-esq showcases.
Listen to a podcast too! The more you utilize the materials on this site, the more you will learn about REI.
@Laura Gianiotis There are a lot of good cash flow markets, particularly in the Midwest, however, I personally think that Indianapolis and Kansas City are two of the best. What both those markets have over some of the other popular markets are strong economic and demographic fundamentals like population and job growth. Some of the other markets have stagnant job markets and even declining populations. Feel free to contact me if you'd like more insights.
@Laura Gianiotis Those are both good areas for OOS investing, and there are others. There can be additional challenges to REI at a distance, especially for someone who is new at it. The key is finding a good and trustworthy team to work with in the market you invest in. In fact, that is more important than the market itself IMHO. You can also look at different ways to invest if you are looking for something passive.
If you are looking in Indy or Cincinnati, I can send you great lists of wholesalers, pms, really any contact you might need. I'd be happy to share anything I have. I'm seeing a lot of movement in these markets and have been in many of the areas myself. I was in 12 homes last week that the wholesalers haven't even seen yet - and they were in great areas, prime for flipping and duplexes throughout as well, fairly close to downtown Indy. The next few days I pan on looking at 5 or 6 more. There was just a lot of room for great numbers on a majority of them. Let me know if I can help.
I only do out-of-state investing I don't invest my local market. I love out-of-state investing in it allows me to diversify into multiple markets. Kansas City and Indianapolis are both great markets Indianapolis is getting a little harder to find great projects right now and I'm not sure about Kansas City.
The key to out-of-state investing is finding a great team on the ground. This will take most of your time and it would be best if you can go and visit the projects in the neighborhoods and the boots on the ground before you invest.
Hello Laura,
I work for KC Metro Homes based in Kansas City, MO. We are a Turnkey real estate investment company and we love to discuss options and give people insight into our market in the KC area. We specialize in Single Family Turnkey properties. If you would like to learn more, don't hesitate to message me!
Best Regards,
Nicholas Crippen
I know there are about 150 great projects in Indy right now. Probably more, many flips sprinkled with duplexes in some of the areas that are undergoing alot of gentrification. These are just the one's I know about. Market tightened for a few months, but I'm seeing these available and I have wholesaler contacts that are picking up 5 -10 new one's a week.
Surprised I havent read any mention about this yet but is anyone concerned with the fact that all three of these "prime" out of state locations mentioned (Kansas City, Indy and even Cincinnati) are also prime tornado area target locations?
@Jenn Kinchen the tornado issue is really a non-issue. It's like earthquakes in California. People aren't worried about it on a daily basis. The risk of hurricane damage - if you live right on the coast - is a real issue. Tornado damage is usually covered under wind damage in insurance policies here in Indiana. (If there's an Indiana insurance agent on here - jump in and educate us on Indiana homeowners policy). Insurance companies are very careful about where the write business, we've seen the big one's pull out of some states due to hurricane. This is not the case with tornado. Insurance companies know what they are doing. Tornado risk in Indiana does not have any effect on values or anything like that.
Tornado damage is very very very isolated. In my 46 years, I've seen one.
@Simon Ruiz Sure I can send you some referrals! Best way to get referrals out of me is to PM me. No problem, I have good lists of everything to wholesalers, PMs, attorneys, home inspectors, etc.
@Jenn Kinchen & @Ritch Bonisa I can comment on the insurance issue as I insure investors in all 3 locations.
All 3 areas have higher wind claims than other parts of the Midwest. This fact is factored into the insurance pricing, but by no means are any of these areas hard to find affordable insurance options for.
Surprised I havent read any mention about this yet but is anyone concerned with the fact that all three of these "prime" out of state locations mentioned (Kansas City, Indy and even Cincinnati) are also prime tornado area target locations?
I'm 25 years old and have lived in Cincinnati my whole life and I've never seen a tornado.
I live in Crown Point, Indiana, which is 2 hours north of Indy and about 35 minutes from Chicago. I've lived there for 25 years. Haven't seen a tornado yet!