Buying your first deal out of market

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Buying your first deal out of market

Frank Redman
Member since 2019 · 2 posts · 3 votes

I currently live in the Boston area and I am looking to make my first rental purchase within the next 12 months. But with the Boston area being so expensive I would likely have to save for a few more years before I'm able to have the down payment I need. Because of this I have been considering buying in the cheaper Columbus Ohio area where I attended college. I was just curious to see if the community thinks that a beginner buying out of market is a bad idea. 

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David BarnettPro Member
Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
5y

@Zeke Liston A little north and to the west of Columbus (Minneapolis/St. Paul - Twin Cities Metro).  The other thing that I think is a consideration is are there direct flights from where you live to the market that you are choosing to invest?  I find it extremely important (pre-COVID) to be on the ground at least a few times a year, ideally, quarterly.  I always learn a ton being in the market and seeing (and hearing) directly from folks that live in the market on a day to day basis.

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  • Reece Iovine
    Realtor · Columbus, OH · Member since 2016 · 170 posts · 227 votes
    5y

    We see a lot of oos investors here in columbus, new and seasoned. The only thing I would say to keep in mind is that you can do 3-5% down as a primary residence where ever you live but if investing oos you will need closed to 25%. Something to keep in mind as you save up that down payment. Let me know if you have other questiosn!

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Frank Redman:

    I currently live in the Boston area and I am looking to make my first rental purchase within the next 12 months. But with the Boston area being so expensive I would likely have to save for a few more years before I'm able to have the down payment I need. Because of this I have been considering buying in the cheaper Columbus Ohio area where I attended college. I was just curious to see if the community thinks that a beginner buying out of market is a bad idea. 

     Yeah, I would definitely check out Columbus, Ohio. The fact that you went to college here give you the base you need to start looking. I know plenty of OOS buyers that have never stepped foot in Columbus

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    5y

    I started with turnkey. For most high paid professionals its a great way to get started

    0Reply
  • Jeremy Wirths
    Auburn, NH · Member since 2016 · 235 posts · 207 votes
    5y

    @Frank Redman I'm not sure how the numbers compare to Columbus but have you considered your neighbor to the north - NH? Our tenant-landlord laws are more favorable than MA and your dollar goes further here as well. 

    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Frank Redman:

    I currently live in the Boston area and I am looking to make my first rental purchase within the next 12 months. But with the Boston area being so expensive I would likely have to save for a few more years before I'm able to have the down payment I need. Because of this I have been considering buying in the cheaper Columbus Ohio area where I attended college. I was just curious to see if the community thinks that a beginner buying out of market is a bad idea. 

     I know several people from Boston who are investing here in Columbus. They've been having a lot of success with their current strategies . 

    0Reply
  • David BarnettPro Member
    Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
    5y

    Buying out of state is certainly possible (I do it).  My main question is, how well do you know the Columbus market?  I understand that you went to college there, and were you paying attention to real estate while you were attending college?  If so, that might be a good market where you may have a competitive advantage over other out of state investors.  In my opinion, one of the biggest risks to out of state investing is to make sure the wool isn't being pulled over your eyes by your on the ground team.  

    2Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @David Barnett:

    Buying out of state is certainly possible (I do it).  My main question is, how well do you know the Columbus market?  I understand that you went to college there, and were you paying attention to real estate while you were attending college?  If so, that might be a good market where you may have a competitive advantage over other out of state investors.  In my opinion, one of the biggest risks to out of state investing is to make sure the wool isn't being pulled over your eyes by your on the ground team.  

    I couldn't agree more, having the right team is a make or break for OOS investors. What states do you invest in?  

    1Reply
  • David BarnettPro Member
    Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
    5y

    @Zeke Liston A little north and to the west of Columbus (Minneapolis/St. Paul - Twin Cities Metro).  The other thing that I think is a consideration is are there direct flights from where you live to the market that you are choosing to invest?  I find it extremely important (pre-COVID) to be on the ground at least a few times a year, ideally, quarterly.  I always learn a ton being in the market and seeing (and hearing) directly from folks that live in the market on a day to day basis.

    2Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @David Barnett:

    @Zeke Liston A little north and to the west of Columbus (Minneapolis/St. Paul - Twin Cities Metro).  The other thing that I think is a consideration is are there direct flights from where you live to the market that you are choosing to invest?  I find it extremely important (pre-COVID) to be on the ground at least a few times a year, ideally, quarterly.  I always learn a ton being in the market and seeing (and hearing) directly from folks that live in the market on a day to day basis.

    That's good insight, how often do you visit your rentals in Columbus?

    1Reply
  • David BarnettPro Member
    Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
    5y
    Originally posted by @Zeke Liston:
    Originally posted by @David Barnett:

    @Zeke Liston A little north and to the west of Columbus (Minneapolis/St. Paul - Twin Cities Metro).  The other thing that I think is a consideration is are there direct flights from where you live to the market that you are choosing to invest?  I find it extremely important (pre-COVID) to be on the ground at least a few times a year, ideally, quarterly.  I always learn a ton being in the market and seeing (and hearing) directly from folks that live in the market on a day to day basis.

    That's good insight, how often do you visit your rentals in Columbus?

    I don't have rentals in Columbus, and this thread showed up on my keyword search because the original poster said he was from Boston.  I figured I would jump in and mention what I've learned living in Boston and investing in the Midwest.  However, I'm thinking that Columbus is quite a bit different (market wise) than the Twin Cities.

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @David Barnett:
    Originally posted by @Zeke Liston:
    Originally posted by @David Barnett:

    @Zeke Liston A little north and to the west of Columbus (Minneapolis/St. Paul - Twin Cities Metro).  The other thing that I think is a consideration is are there direct flights from where you live to the market that you are choosing to invest?  I find it extremely important (pre-COVID) to be on the ground at least a few times a year, ideally, quarterly.  I always learn a ton being in the market and seeing (and hearing) directly from folks that live in the market on a day to day basis.

    That's good insight, how often do you visit your rentals in Columbus?

    I don't have rentals in Columbus, and this thread showed up on my keyword search because the original poster said he was from Boston.  I figured I would jump in and mention what I've learned living in Boston and investing in the Midwest.  However, I'm thinking that Columbus is quite a bit different (market wise) than the Twin Cities.

    You should start picking up some rentals in Columbus, Ohio 

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • David BarnettPro Member
    Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
    5y
    Originally posted by @Remington Lyman:
    Originally posted by @David Barnett:
    Originally posted by @Zeke Liston:
    Originally posted by @David Barnett:

    @Zeke Liston A little north and to the west of Columbus (Minneapolis/St. Paul - Twin Cities Metro).  The other thing that I think is a consideration is are there direct flights from where you live to the market that you are choosing to invest?  I find it extremely important (pre-COVID) to be on the ground at least a few times a year, ideally, quarterly.  I always learn a ton being in the market and seeing (and hearing) directly from folks that live in the market on a day to day basis.

    That's good insight, how often do you visit your rentals in Columbus?

    I don't have rentals in Columbus, and this thread showed up on my keyword search because the original poster said he was from Boston.  I figured I would jump in and mention what I've learned living in Boston and investing in the Midwest.  However, I'm thinking that Columbus is quite a bit different (market wise) than the Twin Cities.

    You should start picking up some rentals in Columbus, Ohio 

     I'm open to discussing why Columbus is a good market to invest in.  Please shoot me a private message if you'd like to discuss.

    2Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @David Barnett:
    Originally posted by @Remington Lyman:
    Originally posted by @David Barnett:
    Originally posted by @Zeke Liston:
    Originally posted by @David Barnett:

    @Zeke Liston A little north and to the west of Columbus (Minneapolis/St. Paul - Twin Cities Metro).  The other thing that I think is a consideration is are there direct flights from where you live to the market that you are choosing to invest?  I find it extremely important (pre-COVID) to be on the ground at least a few times a year, ideally, quarterly.  I always learn a ton being in the market and seeing (and hearing) directly from folks that live in the market on a day to day basis.

    That's good insight, how often do you visit your rentals in Columbus?

    I don't have rentals in Columbus, and this thread showed up on my keyword search because the original poster said he was from Boston.  I figured I would jump in and mention what I've learned living in Boston and investing in the Midwest.  However, I'm thinking that Columbus is quite a bit different (market wise) than the Twin Cities.

    You should start picking up some rentals in Columbus, Ohio 

     I'm open to discussing why Columbus is a good market to invest in.  Please shoot me a private message if you'd like to discuss.

     I'll shoot you one now. 

    0Reply
  • Jessica Stevenson
    Real Estate Broker · Manchester, NH · Member since 2017 · 149 posts · 103 votes
    5y

    I second what @Jeremy Wirths said!  Take a few minutes to research the Southern NH market. Much closer than Ohio :)  

    2Reply
  • Noah Chappell
    Investor · Minneapolis, MN · Member since 2016 · 254 posts · 228 votes
    5y

    @Frank Redman congrats on wanting to get started. I lived in Boston for many years, but relocated to Minneapolis for several reasons, chief among which was my plan to start investing in a more advantageous market. Part of me does want to move back to Boston eventually where things are high end and fast paced.. would be awesome to do some condo conversations, etc. That's more advanced stuff, and I like your idea to start somewhere else first. 

    I have a cousin who is kinda the tech millennial type who's been investing in Columbus from Manhattan. I think he partially feels like he bit off more than he could chew, but is able to keep up with things. I think the advantages of being local, especially as a new investor, can't be denied. 

    If you're serious about RE, I'd recommend investing relatively locally first, then moving to where you really want to live and managing your managers from a distance. I think you could find some decent cash flow markets within 1-2 hrs of Boston, like maybe Salem, Lynn, Worcester, etc.  

    1Reply
  • Michael H.
    Rental Property Investor · Worcester, MA · Member since 2014 · 47 posts · 41 votes
    5y

    Worcester is a fantastic growth market right now. Happy to have the conversation if you want to learn more about the city. Realtor.com identified it as one of the top 10 markets in the country.

    https://www.masslive.com/worce...

    I am and agent and investor here and can help you get started! 

    1Reply
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