Finding my First Out of State Deal

Buying & Selling Real Estate

Finding my First Out of State Deal

Brendon Everswick

Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes

BiggerPockets,

So I have spent the last several months scouring the forums, listening to the podcoasts and currently have read 3 books here on Real Estate Investing(The book on Rental Property Investing, Set for Life, and Long Distance Real Estate Investing. I plan to continue educating myself but ready to pull the trigger and move forward on my first deal. I currently live in Laguna Niguel Ca, and having difficulty finding local properties that will work/cashflow. Which is why I've really enjoyed David Greene's new book on out of state investing. I am not interested in flipping homes and mostly interested in Buy and Hold Rental Property Investing. Current Markets I'm interested in are (Austin, Kalispell Montana, Indiana, Memphis, Ohio). I am in the process of finding a Investor Friendly Real Estate Agent, Property Manage & Contractor in these areas). Any of the more experienced investors have thoughts on any of these particular areas being a good start for a new investor?

I also hope like the idea of House Hacking with a duplex, triplex, quad in Austin and or Montana. Austin being close to family and Montana just being a place I love to be. Look forward to any thoughts/advice.

Brendon

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Most Popular Reply

Investor · Los Angeles, CA · Member since 2016 · 94 posts · 93 votes

Hey Brendon, Good work. Keep learning and reading and don’t stop. Might be time to start making some phone calls into the areas you want to invest. Make contact with some local agents and prop managers. Find them, and ask them 100 questions. Get to know the good areas, bad areas, new developments, upcoming city changes, what type of people like to live where, etc. Local knowledge is key. Good luck!

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Joel O'Leary
Investor · Los Angeles, CA · Member since 2016 · 94 posts · 93 votes
8y
Hey Brendon, Good work. Keep learning and reading and don’t stop. Might be time to start making some phone calls into the areas you want to invest. Make contact with some local agents and prop managers. Find them, and ask them 100 questions. Get to know the good areas, bad areas, new developments, upcoming city changes, what type of people like to live where, etc. Local knowledge is key. Good luck!
2 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Hey Joel, thanks for the response and advice. I'm starting off the new year with that plan and hope to get in touch with a few solid contacts in each area. Alabama is another area I'm looking at as will in addition to Austin, Memphis, Montana, Ohio, Indiana. Are you investing out of state of locally here in SoCal? All the best!
Brendon
1 Reply
Katie Hanner
Real Estate Broker · Austin, TX · Member since 2017 · 38 posts · 36 votes
8y
Of course, being from Austin, I'm partial to the idea of house hacking here - it's a great place to live! I would say the challenge in the Austin market is just the initial price point in the area. There's a wide range of perspective and expectations with new investors...so depending on your goals, one market may really favor you over the other. I'm pretty direct when talking to investors about my area...because some goals it really isn't an ideal environment for and they may see better success in other markets for what they are wanting. Be sure to talk to professionals who are going to be straight with you and not just try and make a "sale". Ask lots of questions and get to know the area...especially if you're considering living there too ;) Don't hesitate to reach out if you want to talk Austin!
1 Reply
Ethan Kanning
Billings, MT · Member since 2016 · 35 posts · 13 votes
8y
Hello - in my opinion, Montana is a great and very stable market to invest in. I just helped a Washington state investor, with similar ideas and goals, purchase an investment property in Billings, MT. He closed Friday actually (two days ago). I’d be happy to chat more about the current investment market and investment rates, inventory, etc if you’re interested.
0 Reply
Joel O'Leary
Investor · Los Angeles, CA · Member since 2016 · 94 posts · 93 votes
8y
@Brendon Everswick i’m investing just outside of Austin, specifically small multi family properties.
SoCal has a very high entry point, and the numbers don’t make sense for my criteria.
I visit Montana frequently, and have been looking at Kalispell and Helena areas. But have yet to find anything that makes sense for the numbers I’m looking for.
Cheers!
0 Reply
Ryan Evans
Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
8y
@Brendon Everswick I'd recommend narrowing down your choices and flying out there. You'll get a whole different perspective on the cities you're looking at in just a couple of days. Especially if it's your first out of state deal. You'll make better contacts and build some credibility as well.
A $500 weekend to be on the ground is nothing compared to the $500,000 you'll save by investing out of state...
1 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Originally posted by @Katie Hanner:

Of course, being from Austin, I'm partial to the idea of house hacking here - it's a great place to live! I would say the challenge in the Austin market is just the initial price point in the area. There's a wide range of perspective and expectations with new investors...so depending on your goals, one market may really favor you over the other. I'm pretty direct when talking to investors about my area...because some goals it really isn't an ideal environment for and they may see better success in other markets for what they are wanting. Be sure to talk to professionals who are going to be straight with you and not just try and make a "sale". Ask lots of questions and get to know the area...especially if you're considering living there too ;) Don't hesitate to reach out if you want to talk Austin!
Katie, appreciate your insight. I have family in Lakeway just outside of Austin area. Its a bit pricey but definitely have my eye on a house hack in those parts. Property there seems to move quite fast so I'll have to get ducks in order but will reach out if that becomes more of a possibility.
Brendon
0 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Originally posted by @Ethan Kanning:

Hello - in my opinion, Montana is a great and very stable market to invest in. I just helped a Washington state investor, with similar ideas and goals, purchase an investment property in Billings, MT. He closed Friday actually (two days ago). I’d be happy to chat more about the current investment market and investment rates, inventory, etc if you’re interested.
That sounds great Ethan, maybe after the holiday we can connect and discuss. I don't know much about the Billing area but I fly to several cities in the Montana area and really like it up there. I'll reach out to ya. Bozeman seems to be to high on price but do you recommend a particular market in Montana right now? Thanks
Brendon
0 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Originally posted by @Joel O'Leary:
@Brendon Everswick i’m investing just outside of Austin, specifically small multi family properties.
SoCal has a very high entry point, and the numbers don’t make sense for my criteria.
I visit Montana frequently, and have been looking at Kalispell and Helena areas. But have yet to find anything that makes sense for the numbers I’m looking for.
Cheers!
@Joel Owens I am searching multi family property in around Austin as well as mentioned. Particular area your having some luck? Hoping to visit Kalispell in the next few months; I'll let you know if I come across any info or opportunities up there. Happy New Years all.
B
0 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Originally posted by @Ryan Evans:

@Brendon Everswick I'd recommend narrowing down your choices and flying out there. You'll get a whole different perspective on the cities you're looking at in just a couple of days. Especially if it's your first out of state deal. You'll make better contacts and build some credibility as well.
A $500 weekend to be on the ground is nothing compared to the $500,000 you'll save by investing out of state...
I agree and plan on visiting several spots. I like Austin and Montana a lot from a "Where I'd like to live" perspective", however, staying open to lower cost/higher cashflow opportunities in Alabama, Ohio, Indiana so just staying open to those areas. Very best to ya and thanks for the info.
B
0 Reply
Katie Hanner
Real Estate Broker · Austin, TX · Member since 2017 · 38 posts · 36 votes
8y
@Brendon Everswick - love the Lakeway area, and great schools in Lake Travis ISD. You definitely sound like you have a good sense for at least the entry price point in the area. That's the main thing (and wanting high cash flow with minimal down) that seems to shock some when talking Austin. We just aren't the "under 100-150K" market that some people are searching for. There are certainly great opportunities with multifamily house-hacking!
0 Reply
Jonathan McGee
Rental Property Investor · Memphis, TN · Member since 2017 · 155 posts · 151 votes
8y
Sounds like you’ve got a solid plan Brendon! I’m a local of Memphis, and since it’s on your list, I’m sure you are aware of the excellent cash flow market here! You can easily find some of the top companies in Memphis here on BP. If you are looking for a solid turn key company with property management, try Memphis Invest or Reedy. Feel free to reach out if you have any questions about Memphis! Wish you success in your real estate journey!
0 Reply
Ethan Kanning
Billings, MT · Member since 2016 · 35 posts · 13 votes
8y
Originally posted by @Brendon Everswick:

Originally posted by @Ethan Kanning:
Hello - in my opinion, Montana is a great and very stable market to invest in. I just helped a Washington state investor, with similar ideas and goals, purchase an investment property in Billings, MT. He closed Friday actually (two days ago). I’d be happy to chat more about the current investment market and investment rates, inventory, etc if you’re interested.
That sounds great Ethan, maybe after the holiday we can connect and discuss. I don't know much about the Billing area but I fly to several cities in the Montana area and really like it up there. I'll reach out to ya. Bozeman seems to be to high on price but do you recommend a particular market in Montana right now? Thanks
Brendon
Most major markets in Montana are great, besides Bozeman which is seeing a lot of out of state investment and capital coming to town which is pushing down CAP rates.
0 Reply
Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
8y
House hack where you want to live if possible and invest where it makes most sense!
[email protected]512-888-9122
The Moorhead Team5140 Reviews
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Man if you could make Missoula or Kalispell work I would do that in a heart beat..
Remember cash flow is not everything and I know I am in the vast minority on BP in this thought process. however unless you have a way to own 10 to 50 doors fairly quickly..
appreciation and joy of living in an area at the end of the day is what I would personally be looking for.
you can go south of Missoula towards Hamilton and there are many little bergs there.. and talk about winter and summer quality of life...
one of our favorite long weekends is to fly to Kalispell ( in our little bug smasher) and go into glacier park.. Fishing in the bitterroot river and valley is something we do every year as well..
these are totally different things than investing in low end rentals in the mid west.
also in my mind Texas is appropriate if your going to live there.. to live in CA and pay high state tax on income derived from states with no income tax and UBER high property tax's defeats the purpose in my mind not to mention soil and storms.. but just my experience foundations are not if but when ( to correct them) and new roofs because of hail are about the same thing.. LOL granted insurance for roofs but still pain in the butt.
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2 Reply
Rory Egelus
Investor · Bozeman, MT · Member since 2015 · 12 posts · 4 votes
8y
Hi Brendon, I live in Bozeman but have a duplex I'd like to sell in Great Falls, only because I'm not a comfortable distance investor. PM me if you're interested, I'm happy to share the details and it is currently rented.
0 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Originally posted by @Jonathan McGee:

Sounds like you’ve got a solid plan Brendon! I’m a local of Memphis, and since it’s on your list, I’m sure you are aware of the excellent cash flow market here! You can easily find some of the top companies in Memphis here on BP. If you are looking for a solid turn key company with property management, try Memphis Invest or Reedy. Feel free to reach out if you have any questions about Memphis! Wish you success in your real estate journey!
Thanks @Jonathan McGee I'll check them out.
0 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Originally posted by @Rory Egelus:

Hi Brendon, I live in Bozeman but have a duplex I'd like to sell in Great Falls, only because I'm not a comfortable distance investor. PM me if you're interested, I'm happy to share the details and it is currently rented.
@Rory Egelus ... PM sent
0 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Originally posted by @Jay Hinrichs:

Man if you could make Missoula or Kalispell work I would do that in a heart beat..
Remember cash flow is not everything and I know I am in the vast minority on BP in this thought process. however unless you have a way to own 10 to 50 doors fairly quickly..
appreciation and joy of living in an area at the end of the day is what I would personally be looking for.
you can go south of Missoula towards Hamilton and there are many little bergs there.. and talk about winter and summer quality of life...
one of our favorite long weekends is to fly to Kalispell ( in our little bug smasher) and go into glacier park.. Fishing in the bitterroot river and valley is something we do every year as well..
these are totally different things than investing in low end rentals in the mid west.
also in my mind Texas is appropriate if your going to live there.. to live in CA and pay high state tax on income derived from states with no income tax and UBER high property tax's defeats the purpose in my mind not to mention soil and storms.. but just my experience foundations are not if but when ( to correct them) and new roofs because of hail are about the same thing.. LOL granted insurance for roofs but still pain in the butt.
@Jay Hinrichs ; I have spent quite a bit of time in Bozeman, West Yellowston, Missoula, Anaconda, Ennis but have yet to make it to Kalispell which is a place I'm anxious to visit to due some of the things you mentioned about he area. Not knowing yet if I can find a solid investment there but do really like it.
When you mention your little bug smasher are you referring to a small aircraft? Sounds like a ball. I fly for a Charter/Corporate company down in SoCal and think that would be some beautiful county to fly over. White Fish skiing, Glacier National Park are all on the list of things to do this year. Appreciate your insight. I will let you all know what I find and how it develops. Love the info gathered from this site and appreciate the help.
Cashflow is something I'm after but ultimately the right opportunity.
B
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
@Brendon Everswick we fly a Cirrus SR - 22 NA and yes that area is breath taking for aviation..
as you know its early mornings for us little guys.. other wise ride can be pretty bumpy..
about 2.5 hours from KUAO to Kalispell.. we are slogging along at 170 knots true.. :)
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JLH Capital Partners51 Review
Website View Page
0 Reply
Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
Brendon Everswick I’ve invested out of state twice already (two deals) and about to make it a third. I’ve gone the turnkey route and non turnkey route. Personally I’m starting to think turnkey route is more for me since it truly is hassle free. The first deal was as the scariest but it’s been very smooth sailing with that property since I bought it and I’m slowly getting over my fears. I’ll probably visit my properties once a year or so as well as have bi annual inspections
0 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
@Jay Hinrichs ...that's a nice plane. Probably will see if there is a local flying club so that I can do a checkout and see the area from the air. Good stuff!
@Caleb Heimsoth Great to hear that you've had some luck turnkey. Where'd you end up buying? Havn't done much research with turnkey and would be interested in hearing your experience.
2 Reply
Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
8y
Originally posted by @Brendon Everswick:

BiggerPockets,
So I have spent the last several months scouring the forums, listening to the podcoasts and currently have read 3 books here on Real Estate Investing(The book on Rental Property Investing, Set for Life, and Long Distance Real Estate Investing. I plan to continue educating myself but ready to pull the trigger and move forward on my first deal. I currently live in Laguna Niguel Ca, and having difficulty finding local properties that will work/cashflow. Which is why I've really enjoyed David Greene's new book on out of state investing. I am not interested in flipping homes and mostly interested in Buy and Hold Rental Property Investing. Current Markets I'm interested in are (Austin, Kalispell Montana, Indiana, Memphis, Ohio). I am in the process of finding a Investor Friendly Real Estate Agent, Property Manage & Contractor in these areas). Any of the more experienced investors have thoughts on any of these particular areas being a good start for a new investor?
I also hope like the idea of House Hacking with a duplex, triplex, quad in Austin and or Montana. Austin being close to family and Montana just being a place I love to be. Look forward to any thoughts/advice.
Brendon
It sounds like you are looking for a Turnkey investment. Investing in a Turnkey can be great when you live out of state and/or work a 9-5. Ideally, the provider will own, renovate, and manage the property all in-house. You do not want them using any third parties.
The Midwest is a great place to earn a decent ROI right now.
I would suggest looking at:
The Best Types of Markets for Profitable Turnkey Properties
and
What to Ask When Working With a Turnkey Provider
0 Reply
Brendon Everswick
OP
Laguna Niguel, CA · Member since 2017 · 27 posts · 9 votes
8y
Originally posted by @Tom Ott:

Originally posted by @Brendon Everswick:
BiggerPockets,
So I have spent the last several months scouring the forums, listening to the podcoasts and currently have read 3 books here on Real Estate Investing(The book on Rental Property Investing, Set for Life, and Long Distance Real Estate Investing. I plan to continue educating myself but ready to pull the trigger and move forward on my first deal. I currently live in Laguna Niguel Ca, and having difficulty finding local properties that will work/cashflow. Which is why I've really enjoyed David Greene's new book on out of state investing. I am not interested in flipping homes and mostly interested in Buy and Hold Rental Property Investing. Current Markets I'm interested in are (Austin, Kalispell Montana, Indiana, Memphis, Ohio). I am in the process of finding a Investor Friendly Real Estate Agent, Property Manage & Contractor in these areas). Any of the more experienced investors have thoughts on any of these particular areas being a good start for a new investor?
I also hope like the idea of House Hacking with a duplex, triplex, quad in Austin and or Montana. Austin being close to family and Montana just being a place I love to be. Look forward to any thoughts/advice.
Brendon
It sounds like you are looking for a Turnkey investment. Investing in a Turnkey can be great when you live out of state and/or work a 9-5. Ideally, the provider will own, renovate, and manage the property all in-house. You do not want them using any third parties.
The Midwest is a great place to earn a decent ROI right now.
I would suggest looking at:
The Best Types of Markets for Profitable Turnkey Properties
and
What to Ask When Working With a Turnkey Provider
Thanks Tom I'll take a look at those articles!
0 Reply
Michael Nosbaum
Investor · Medford, OR · Member since 2016 · 12 posts · 4 votes
8y
Howdy, I'm in Southern Oregon and I've been hemming and hawing about something similar in MT. There's a couple little towns up there that seem poised to grow when they're discovered.
I did a scouting/fishing trip this summer. The biggest issue I found is that there are very few, and even fewer good, property managers in these smaller towns.
I struggle with the idea of long distance management, but the cap rates are definitely there. Along with the potential for people migrating there when Denver and CO are considered too expensive.
1 Reply

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