New to Investing. Looking for Long Distance. Where do I start?

7 Replies

Hello! 

I am new to this investing game. I currently live in San Diego, born and raised in Phoenix. But I am active duty and move around all the time. California is too expensive for me to get started in, and even Arizona is starting to get pretty pricey. My plan is to try my hand at wholesaling for the next year or two to get a decent lump sum ( I currently have $9,000), for a down payment and money for a rehab. My long term goals is to buy and hold and hire a property manager to help take care of the rental property. 

I am open to all suggestions from Alaska, to Wyoming, to Florida and everything in between. I am just not sure where to start because googling good rental markets in the US brings up a lot of sources. How do you begin to narrow down these choices? What area or states seem to have a good rental market? When you first began investing long distance, how did you choose your locations? 

Any advice for a newbie is greatly appreciated! 

Thanks! - A very confused 21-year old. 

@Mariah Sanchez Florida is a pretty good rental market. Here in Orlando, there is a shortage of available apartments compared to what the demand is. The prices in Orlando are climbing making it more difficult to find a deal that makes sense. I have heard that Jacksonville and Nashville are both good markets where deals are available. Unfortunately, I do not know any contacts in those areas. Sorry I couldn't be of more help. 

Originally posted by @Tyler Gibson :

@Mariah Sanchez Florida is a pretty good rental market. Here in Orlando, there is a shortage of available apartments compared to what the demand is. The prices in Orlando are climbing making it more difficult to find a deal that makes sense. I have heard that Jacksonville and Nashville are both good markets where deals are available. Unfortunately, I do not know any contacts in those areas. Sorry I couldn't be of more help. 

 Thank You! This is a great place to start looking. I appreciate your help. 

@Mariah Sanchez There's an local REIA meeting tomorrow (Tuesday 8/21) in Vista. The topic is out of state investing. Google NSDREIA for information. I'd recommend going to this to talk to other investors and learning more about real estate investing. Hope this helps!

I recommend using your VA loan to house hack a detached duplex where both units are in need of a rehab (a value add property). If you do know the term house hack do a search on BP. live in the unit most in need of rehab and rehab it while living there. After rehab rent the freshly rehabbed unit and move into the other unit. The rehabbed unit should now get top of market rent due to the just completed rehab. Then rehab the other unit but prior to renting it out, refinance the property not using VA loan. After owner occupied refinance, rent out the 2nd rehabbed property. Ideally you get out all of your investment money and can repeat the process again using your VA loan.

Good luck