Buying First Investment Out of State

6 Replies

Hello Everyone,

I've been following this forum, listening to this podcast, and reading real estate investment books for the last few years.  I'm 25 and live in the Washington DC metro area, and work in financial services.

I have done really well investing in the markets and have been trying to save as much as i can (while still enjoying life to the fullest), and have created a nice little nest egg to start my journey in real estate investing.

The reason i am starting this thread, is because after living and renting in the DC metro area for 3 years here, i just do not believe the market here is attractive for buying house hacking or renting properties.  I'm sure there are some who can find deals in this market, but i have yet to find any homes close to being able to cash flow sufficiently in the last 3 years after literally going through hundreds or maybe thousands of mls, zillow or other online house listings.  Due to this, i am now thinking of buying my first home in another city/state while continuing my corporate career here for a few more years.

The obvious issue with this is the type of financing available if its not going to be my primary residence.  My mother and sister recently moved to Omaha, NE and will be there for the next 5 years since my brother in law is doing his residency there. I have been talking to some agents there and the plan would be getting a primary residence loan and have my family move in there for the next few years as they get more acclimated to the area.

I was wondering if anyone has started their rei career in a city so far away, or if there would be any legal issues financing the home this way.

Appreciate any feedback!

Nick Ferraro

@Nicholas Ferraro So you want to get a loan in your name and let your family live in it? That likely isn’t going to fly since you have to live in the house. Why not just do a 15-25 percent investor loan? Omaha can’t be that expensive. I’ve bought in the Midwest and south for less then 15k All In multiples times.
@Nicholas Ferraro Hi Nick! I live in Omaha. I have a pretty good handle as far as the market goes, what properties go for and what areas you would want to be in as well as probably stay away from. If I can help you out in any way, please reach out. Thanks Josh

@Caleb Heimsoth Thanks for the reply. I agree about that, if i cant live there more than 50% of the time i wouldnt go primary and get a conventional loan, but im thinking i may be able to have my job allow for remote work, and have my family stay there for a year or two while we fix the place us a bit

@Josh LeClair i appreciate that, and i could definitely use some direction from someone who has been in that market! From my families first impression and some research on my end, im interested in anything close to the downtown (which looks like there is a good amount of investment proposed), something in the dundee/ aksarben area which they say is kind of a hip and up and coming area, or something in west omaha (more expensive but better neighborhoods etc.)  I'm really looking for something with multiple units, i.e. dueplex, quadplex, etc but it looks like the supply is mostly older single family homes.  I'd really appreciate any direction on this or if you think its offbase, being in the market.  Thanks!

@Nicholas Ferraro you hit all the nails on the head as far as Dundee and aksarben starting to redevelop. West Omaha is a little more expensive because of taxes, Home size, and because most of them are newer than the 1920’s. Most homes In west omaha are buIlt from 1980+. Anything around downtown or even midtown(just a few miles west of downtown) are usually SFR’s built around 1920’s-1940’s. Some even before the 1900’s. There are a few duplex’s toward downtown that probably need a lot of rehab. I know of a couple landlords in Omaha and they are cheap cheap cheap. So a lot of duplex’s and even some apartments are really run down, giving the investor more opportunity to raise rents if it’s rehab’d properly. I have some connections with contractors(I’m a glass person myself) and I have friends in plumbing, electrical, concrete, etc.

@Josh LeClair Cool, glad to hear that the preliminary analysis sounds right to someone there haha.  The older homes do scare me being so far away, so i will definitely get a contractor in the area to go look at anything i get interested in.

If it's ok with you, i'm going to send you a "colleague request" and ill keep in touch, and potentially ask for help getting in touch with a good contractor in your area.

Thanks again!