Investor · Oceanside, CA · Member since 2019 · 37 posts · 14 votes
Hi everyone,
I am new here and new to real estate investing. I live in the San Diego Area in California and won't be investing in real estate in California because it is too expensive. I would like to buy a rental investment property in the midwest, but don't know where to start because it is out of state. Any advice on how to start finding properties out-of-state would be great!
Obviously you need to be able to vet your deal and perform due diligence.
That said, you need:
Boots on the ground
Someone that will look for properties that fit YOUR criteria.
Have your financing in line to move quickly. The good deals don't last long.
If you're all cash or mainly cash. You can purchase off market. Traditional finance works OK for properties that are listed MLS/BLC.
You need patience. Learn the market so you have the ability to act quickly. Being uninformed and trying to make quick moves can cause major problems very quickly.
Then there are the questions of strategy. Distressed property, rent ready, etc. what are you looking for.
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
7y
I would be careful with "turn key" providers, who often are selling properties that are overpriced, and that will have long term challenges, including getting your initial price back when you sell it.
Some of these Midwestern towns are cheap for a reason; They are in economic decline. Especially the older housing stock - there is a surplus of it and future appreciation will be challenged. Supply is greater than demand.
My strong advice is to invest in San Diego where you are from. Perhaps you will only buy one property. But it is a place where people want to come, where wealth accumulates. And it's hard to build new product there. Demand greater than supply
Specialist · Indianapolis, IN · Member since 2013 · 3 posts · 3 votes
7y
@Kevin Hoff
Congratulations on taking the necessary step toward growing your portfolio. I’m sure you have a ton of questions such as residential or commercial etc.?
Majority of my family are natives of California and they love the Indianapolis market.
I would suggest viewing this website that gives a great breakdown of the Indianapolis markets and where money is being invested so that your portfolio can gain the appreciation in value.
Places To Invest In Indianapolis Indiana - Lee Chandler Enterprises
https://www.lee-chandler.com/invest-in-indy.html
I would also suggest visiting the Indy market during the week and also on the weekend so that you can put your personal eye on the different parts of town.
One thing I can assure you is that the quality of rental for Indiana is not the same as California which can explain such the large ROI.
The next thing I would is once in town ask other active investors like myself if you can view some of our portfolio or investor my investor properties so that you can see conditions, living conditions etc.
Hopefully this was helpful. Feel free to DM me if you have any other questions or if I can offer any guidance.
There is also a great free newspaper for sub markets in Indiana called Court & Commercial Record – Your Public Information Source since 1895
Los Angeles, CA · Member since 2019 · 36 posts · 13 votes
7y
@Kevin Hoff I didn't see it in the thread. I'm currently rereading David Greene's book, Long Distance Real Estate investing. Read it once, listened to his podcast early on before he joined Bigger Pockets (https://www.biggerpockets.com/blog/2016-04-07-bp-podcast-169hustle-persistence-build-wealth-real-estate-david-greene) as well as his recent interview on the BP Business podcast. (I haven't about an hour commute, being in Los Angeles.) https://podcasts.apple.com/us/podcast/biggerpockets-business-podcast/id1460051721?i=1000449215157
He provides great insight on what to do. I cannot see buying property here in the California market unless I'm flipping, so will probably be looking out of state.
Here's the book : https://www.amazon.com/Long-Distance-Real-Estate-Investing-State/dp/0997584750
Rental Property Investor · Long Beach, CA · Member since 2015 · 623 posts · 155 votes
7y
@Kevin Hoff You will need a team wherever you choose. I can introduce u to a few people in Indianapolis if that would help. Agents, wholesalers, insurance, inspectors, lenders, etc.
Rental Property Investor · Paramus NJ · Member since 2016 · 76 posts · 27 votes
7y
@Kevin Hoff I live in NYC area and own 14 doors Indianapolis, my two brothers live there for over 12 years so it makes it easier. Investing in INDY has tough me that is very different than the coasts. SFH tend to be a lot easier to manage and renters stay way longer, Keep in mind in most of these markets renting a single family house is as much as renting an apartment and most people have multiple. Unless your multi family unit is very well located it will not rent to quality tenants, again very different than NY or California where people are used to living in apartments
I highly suggest visiting the city you choose a few times and staying in an Airbnb in the zip code you might be thinking of investing in, walking and driving the neighborhood might save you lots of headaches, Good luck!!
Couldn’t agree more with leveraging other people’s expertise. I’d start with reading “Long distance RealEstate Investing” by David Greene and networking with people in the area your interested in.
Real Estate Agent · San Francisco · Member since 2019 · 4 posts · 1 vote
7y
@Kevin Hoff
Hi Kevin, thanks for clarification, if you wouldn’t mind, can you elaborate on your business plan, what you want from the investment at the end of say 3,5,7 years and your goal of investing in real estate in general? I think you have received some great knowledge on this thread from many people who really know the midwest markets. But as this is your first foray into real estate and real estate really is a HUGE world with an infinite number of ways to make money or lose money, I know I’m curious as to how you’re funding your first purchase? are you looking for stability, income, or appreciation? how long will you be holding it? is it going to be part of your retirement plan?