I've been antsy for months to get in on my first rental property. I have the savings to do so, but I live in the East Bay in California where rentals are through the roof and cash flow is almost nonexistent. I have a mentor (my grandpa) who lives north of Sacramento, and we have been scouring that area for buy and hold for cash flow for some time with no luck yet. My mentor is older and while he has had out of state properties in the past, he is not familiar with the new OOS market and the modern day advantages technology offers for finding rentals. He thinks it's sketchy (which it can be!) I've read David Greene's book on out of state RE investing and have been searching the MLS in markets like the Midwest, TX, and Ohio. I know about the system and team I need to create if I want to do this (agent, lender, property manager, etc.). I would feel a whole lot more comfortable if I had an experienced OOS investing partner to help me through my first deal. I realize it's asking a lot, but I'm highly motivated, have the capital, time, and am ready now! If there is anyone out there who is willing to help in any way, that would be a godsend. If not, I understand. Regardless, good luck to everyone in their RE journey!

Notice that 90% of the people who recommend out of state investing are in the business of selling people out of state investment properties. Or newbies. If you want to be passive you can do two things: 1. Buy an ultra conservative boring suburban rental property in a cheaper market at a 6 cap and be happy with it. Turnkey companies usually don't sell these. Just find a good broker who knows the area. 2. Save yourself the hassle and lend money to active investors.

I would be willing to partner with the right person/team on a multifamily property in Texas. Preferably the property would be in the major Texas markets or along the IH35 corridor from San Antonio to Dallas. Partnerships are great if set up properly. Good RE attorney who is well versed in partnerships. The docs need to go over expectations and responsibilities. As long as goals are aligned and there is a mechanism in place for adjustments as those goals shift in the future.

@Kyle Marek Hi Kyle Like you I’m in Cali, although SoCal and I’m investing in Midwest (Indianapolis). Currently own 4 SFH and looking to grow. If you want to chat, send me a DM. I’m open to a partnership or just to share info Good luck Graz

I would recommend Columbus, Ohio

@Tyler Caglia Any recommendations on area in ohio to invest in

A lot of OOS investing from CA tend to look at the Midwest where the prices are lower. They also like to use a Turnkey Provider so everything is done for you and it is truly a passive investment. Everything is done in-house with them so you don't have to find as many partners.

OOS Investing from California

Cassi Justiz

Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes

8y

Hey Kyle,

I would be happy to help you if you decide to look towards the Oklahoma City market. I would definitely recommend you narrow down a few markets and then try to visit the city you are most interested in and meet some "boots on the ground" contacts. You can definitely do out of state investing without ever setting foot there, but I think it's helpful to get on the ground at least occasionally to get a feel for the areas you are looking at and make sure your "boots on the ground" people are leading you in the right direction.

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Joe VilleneuvePro Member

Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes

8y

You are not alone. I come across many investors from CA, new and more experienced, that invest for CF here in the mid-west for all the same reasons you stated. Some I even partner with.

OOS Investing from California - partner?

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