Advice for a Newbie looking for Long Distance Investment

19 Replies

Good afternoon fellow BP Members...

Happy new year of 2018!

Allow me to introduce myself: I'm a new real state investor from New York. I'm interested in investing in either fix and flips or buy and holds (for cash flow). I'm currently working part-time in NYC so I've got available time to seriously devote to this new business venture.

I've got $150K in cash to invest.

I'm primarily interested in the central/south Florida markets since, in addition to investing in real state, I've also have a goal to move down there by the end of this year.

However, given that my primary goal is to achieve the highest possible ROI I'm open to consider other states as well, provided that I find 'good deals'.

So in this early stages, what would you recommend as the best cities/states in central/south Florida for house flips?

What about states? I read on some of the forums here that Cleveland, Baltimore are good cities for buy and holds for cash flow? Thoughts? 

Any other recommendations would be greatly appreciated.

So I would welcome any BP Member connections for those looking to establish partnerships. I'm open to establish partnerships with legitimate, ethical, serious, professional and dedicated partners (e.g. investment partners, investor friendly realtors, wholesalers, contractors, etc.).

Great day to all and thank you in advance.

@Nilton Santos I believe the best place to invest is where you know the best. That usually means within an easy drive of where you live. Since you plan on moving to FL, then you might want to wait until you get there.

That does not mean do nothing in the mean time. You should keep learning what you can about real estate investing in general and what you can learn of the market you are going to. You can also be saving up money to invest with. That may not seem exciting if you are anxious to get going but you will be prepared to hit the ground running when you arrive.

I work the Baltimore market. Yes it is good for cash flow. However it is difficult to understand from afar.

Welcome to BP,
I just moved to Florida ( West Palm Beach) as well from Ohio a month ago and been trying to start for years but every time something happened.
Feel free to contact me
And good luck

There is a recent bp podcast and book regarding out of state investing. I would give that a listen. Jacksonville is also an enticing area thy is experiencing significant growth 

@Nilton Santos Happy New Year!  Great to hear are taking the dive into real estate.  I think some of the previous advise is great!  I would just add that maybe going to some local investment meets and speak with others in your area to figure out if some your surrounding areas might work for investing.  I am investing out of Baltimore and focusing on fix N flip so I can't speak to much to rentals but I know Baltimore you do have to be careful because each area is different.  Another thing to consider is that Cleveland and Baltimore are not too far from New York.  You might consider connecting with some people on BP and taking a road trip to check out each market.  I think it def can be done I just think it takes more due diligence. Good Luck!!!  Happy investing!

Originally posted by @Nilton Santos :

Good afternoon fellow BP Members...

Happy new year of 2018!

Allow me to introduce myself: I'm a new real state investor from New York. I'm interested in investing in either fix and flips or buy and holds (for cash flow). I'm currently working part-time in NYC so I've got available time to seriously devote to this new business venture.

I've got $150K in cash to invest.

I'm primarily interested in the central/south Florida markets since, in addition to investing in real state, I've also have a goal to move down there by the end of this year.

However, given that my primary goal is to achieve the highest possible ROI I'm open to consider other states as well, provided that I find 'good deals'.

So in this early stages, what would you recommend as the best cities/states in central/south Florida for house flips?

What about states? I read on some of the forums here that Cleveland, Baltimore are good cities for buy and holds for cash flow? Thoughts? 

Any other recommendations would be greatly appreciated.

So I would welcome any BP Member connections for those looking to establish partnerships. I'm open to establish partnerships with legitimate, ethical, serious, professional and dedicated partners (e.g. investment partners, investor friendly realtors, wholesalers, contractors, etc.).

Great day to all and thank you in advance.

You should look into a more affordable, yet cash flowing market. Places in the Midwest, like Cleveland. You could put a down payment on 6 or 7 properties with that kind of cash! They will often give you ROIs at 12-17% in the suburbs!

Thank you so much for the great answers. You guys are so helpful, what a great community I've found here!

@Tom Ott: wow, 6 properties with only 150K? Those ROIs that you've quoted are for cash flow rentals, right? Any zip codes you'd recommend? 

@Ned Carey: Any zip codes you'd recommend in Baltimore? What kind of return I'd be looking at for 150k investment (average ofc)? 

@Nilton Santos  

Any zip codes you'd recommend in Baltimore?

That is actually a very tough question. Good for what? Some areas are better for appreciation, some are better for cash flow. Within any given zip code there will be good areas and bad areas. 

The amount of your return will depend on many factors, especially how much you are financing.

Originally posted by @Nilton Santos :

@Tom Ott: wow, 6 properties with only 150K? Those ROIs that you've quoted are for cash flow rentals, right? Any zip codes you'd recommend? 

Yes, if you are leveraging properties with a mortgage with only 20% down, you can get that in the Cleveland suburbs. The properties around here normally are under $100,000 and rent for around $1,000 a month! You just need to find the right properties in the right neighborhoods.

@Nilton Santos

If you are going to be involved in flipping, you will have to make sure you are there during the rehab phase of your flip otherwise you have a good chance of getting taken advantage of.

I recommend attending some REI events here in NY as there are quite a few. The more people you meet, the better.

@Nilton Santos if you're asking me I would say continue to look in Florida. I'm in multifamily and we're always looking at a couple of things when choosing markets. Job Growth, population growth, and employment figures. Florida is home to some of the best markets in the country for those figures especially population growth. Jacksonville and Tampa especially are doing very well and we have acquired one property in Jacksonville and are in contract for another currently. I think you can obviously get some better returns in other markets and there are some awesome markets in the midwest, but we always want to be where the people are going and where the jobs are going; the two often go hand in hand. And if you're going to be in Florida, I see no reason why you wouldn't look to start there as it would be the most accessible to yourself.

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@ Chris Grenzig So are you investing in multifamilies out of state? Florida? if so, what has been your experience so far? Thanks.

@Tom Ott "You just need to find the right properties in the right neighborhoods." Indeed! so, as you can see, I'm ready to go. I'd like to get in touch with you to get more insider info. I'm really liking what I'm hearing in terms of down payments, ROIs and, specially, cash flows. My initial goal is definitely cash flow. Later, equity. Ideally both, off course!

Once again thank you all for the awesome and really useful comments. I do know that it's usually an over simplification to generalize things, but just to get a rough idea, would you all agree that if would be somewhat accurate to say that a) the Midwest (e.g. Cleveland area) are great for cash flow rentals whereas the sunbelt areas in general (e.g. Texas (e.g. Houston, Dallas, Austin) and Florida (Tampa, Jacksonville)) are great for equity rentals (not necessarily cash-flow)?

Originally posted by @Nilton Santos :

@Tom Ott "You just need to find the right properties in the right neighborhoods." Indeed! so, as you can see, I'm ready to go. I'd like to get in touch with you to get more insider info. I'm really liking what I'm hearing in terms of down payments, ROIs and, specially, cash flows. My initial goal is definitely cash flow. Later, equity. Ideally both, off course!

 Send me a message!

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