Looking for a multi-family out of state, best steps

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Looking for a multi-family out of state, best steps

Tom Donnelly
Rental Property Investor · San Diego, CA · Member since 2017 · 66 posts · 66 votes

I'm ready to start lead gen'ing and analyzing deals, but not in my backyard.  I live in San Diego and am looking to invest elsewhere since our price per square foot is about 3x the national average.  I've read a few books, listened to almost all of the BP podcasts and feel ready to make the leap.  I'm getting caught up on first steps since I'll be looking out of state.  Would choosing an emerging market and finding a broker be the best way to get things in motion?  Looking for direction from anyone who has started off the same way or has tips on what would be a good first move.  Thanks.

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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
9y

Definitely best to find someone in the market you are looking to invest in. I invest in Minneapolis but also have a father that's an agent in Louisville, Ky and look at both on a regular basis.

I'm currently buying 1-4 unit properties here and looking for a 5+ unit in Louisville.

It's much easier when you have MLS access in the market you're looking at and someone that is also looking for off market deals.

[email protected]512-888-9122
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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    9y

    Definitely best to find someone in the market you are looking to invest in. I invest in Minneapolis but also have a father that's an agent in Louisville, Ky and look at both on a regular basis.

    I'm currently buying 1-4 unit properties here and looking for a 5+ unit in Louisville.

    It's much easier when you have MLS access in the market you're looking at and someone that is also looking for off market deals.

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
    WebsiteView Page
    1Reply
  • Elijah Moore
    Rental Property Investor · Farmington, MI · Member since 2013 · 36 posts · 6 votes
    9y
    Let’s talk ASAP
    0Reply
  • Tom Donnelly
    OP
    Rental Property Investor · San Diego, CA · Member since 2017 · 66 posts · 66 votes
    9y

    @Jordan Moorhead  Appreciate the insight.  I just invested a good chunk of change in a multi-family project being constructed in Maple Grove, MN.  It was through an equity group and I couldn't pass up the projected returns.  Next project I'd like to take on myself.  It'd be great to connect if you're looking to partner up.  

    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    9y

    @Tom Donnelly always open to talk. Shoot me a message.

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
    WebsiteView Page
    0Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    @Tom Donnelly. I recently wrote and article on BP about emerging RE markets. Check it out: https://www.biggerpockets.com/blogs/10145/66160-ho...

    I would caution "hot" markets. The fundamentals are good, but if the affordability is not there it will be tough to continue raising rents and creating value. The Minneapolis/Twin Cities markets for example are really good looking from the outside, but I would caution that it may not be sustainable. 

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  • Tom Donnelly
    OP
    Rental Property Investor · San Diego, CA · Member since 2017 · 66 posts · 66 votes
    9y

    @Todd Dexheimer Really great article and great interview.  Coincidentally I listened to your BP podcast interview this morning and then put two and two together after reading your article this afternoon.  

    In your interview, you made a great point about getting into markets out of state.  You mentioned that your first step is to find a broker, get additional referrals from him/her and keep asking around until you find out who the best of the best are to build your team.  That struck a cord and put some direction on my first step.  Thanks for all the great information in the podcast and I look forward to listening to your personal one.

    I had a great opportunity to invest in a multi-family development in Maple Grove a couple of months ago.  I visited for the first time this past June and was blown away by the culture and art scene in the Twin Cities!

    Tom 

    1Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    @Tom Donnelly

    Are you looking at Commercial MultiFamily or 2-4 Unit Multifamily?  If you're in San Diego you should reach out to @Michael Swan  He just was on a Podcast here on BP and he lives in San Diego and invests out of state. I talked to him myself on the phone and got some tremendous wisdom regarding some do's and don't and (not coincidentally) I'm in contract for a duplex in the same area he invests in.

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  • Tom Donnelly
    OP
    Rental Property Investor · San Diego, CA · Member since 2017 · 66 posts · 66 votes
    9y

    @Brian Garlington  I would start off with a residential OR commercial if I can get a good spread between the cap rate and loan constant while hitting my monthly cash-flow goals.  I talked to @Michael Swan about a month ago and got some great knowledge from him.  I'm going to DM you!

    Tom 

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