Finding my First Out of State Deal

OP

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

8y

Hey Michael...I agree. It’s a refreshing part of the county and always find myself thinking about the opportunities there for the future. Haven’t lived there and understand the winters can be harsh but the upside I feel is worth it. My have two young kids and a house hack would be something worth investigating just trying to find out more about the schools for them as that is important too.

Maybe a SFH with renter through the school year and then AirBNB over the summer to take advantage of the tourism hitting Glacier National Park, Yellowstone, Fishing.

We’re you end up fishing? Some of my favorite visits was while visiting Bozeman and fly-fishing the Madison/Galitan rivers.

Maybe you’ve identified an opportunity for some here on BP with the lack of Property Managers in those areas. If I uncover anything through my research I’ll be sure to keep you in the loop!

Hey if there is enough interest maybe we can get a few to partner up on a larger deal/Multi-Family.....

Brendon

0 Reply

Michael Nosbaum

Investor · Medford, OR · Member since 2016 · 12 posts · 4 votes

8y

Some of my rivers are just a wee bit secret. I've had some great days on the Blackfoot and Galitan though. I try to avoid the yellowstone rivers/crowds. That's another reason I like the Anaconda area. It's kinda undiscovered, off the highway, but on a scenic alternative for anyone who wants to get off the highway. (without naming creeks, there's some great fishing nearby!)

It definitely needs a good Property Manager. I got that from all of the realtors I talked to. They didn't hesitate to trash talk the only game in town. I really don't want to start another business (I have 2 already) I keep finding these great opportunities that are just too far away for me to be comfortable without a PM. Found another great one outside of Chicago too.

Finding a good PM was the biggest challenge I've faced with long distance rentals. I had a few nightmares before I found my current aces.

I don't know about business partnerships, but teaming up with finding contractors, agents, intel, etc would definitely be helpful.

I'm picking up a van in Chicago next month and driving it back that way. I was thinking about poking around Butte a little. Any other towns you think look promising?

0 Reply

Michael Nosbaum

Investor · Medford, OR · Member since 2016 · 12 posts · 4 votes

8y

Originally posted by @Ethan Kanning:

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.

Hi @Ethan Kanning What do you think about Butte? It has a college, it's nearish to Yellowstone, etc. Cap rates seem to be there.

0 Reply

Josiah Pisel

Bozeman, MT · Member since 2016 · 61 posts · 28 votes

8y

@Michael Nosbaum Population wise it has been very stable for at least 30 plus years, a little bit gentrification happening and the college is growing...

1 Reply

Ethan Kanning

Billings, MT · Member since 2016 · 35 posts · 13 votes

8y

Originally posted by @Michael Nosbaum:

Originally posted by @Ethan Kanning:

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.

Hi @Ethan Kanning What do you think about Butte? It has a college, it's nearish to Yellowstone, etc. Cap rates seem to be there.

I have a few listings in Butte and it is one of the most unique and potentially lucrative markets in all of Montana. Property values are extremely depressed but the rental market is still strong. I have a friend out there who is collected 12 units in the last 18 months and has blended portfolio CAP of 20, absolutely unreal. Most properties need some or significant rehab so you would need to find a good contractor and a property manager as well. Most investors are all local. Also, any new inventory at a reasonable price gets scooped up within a day or two so you need Local Intel as well.

1 Reply

Brendon Everswick

OP

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

8y

@Michael Nosbaum

Don't know much about the Anaconda area but it was pretty flying into the private airport there last year. We had some customers doing some hunting in those parts. I won't ask for your secret fishing spots but imagine you can find some spots where your the only one on a stretch of river.

Let us know about your drive back from Chicago turns up(Make sure to hit Portillo's and Giordanos before leaving.

"Any other towns you think look promising?" One other spot I've driven by which could use some invstigating was the city of Ennis. As Bozeman continues to grow I think a lot may decide to move to some of the outskirt areas that are still within an hours drive of the city. I like this particular area as only can grow, has blue ribbon fly fishing waters, easy access to Bozeman Airport for flying in and out of and less that an our to Yellowstone. Of course the locals will better be able to inform whether this is worth the time. I remember the parcels of land in some of those areas where pretty inexpensive....

Brendon

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!

@Jonathan McGee

Are there any particular areas of Memphis you'd specifically recommend starting a search? I realize there has probably been lots of threads on this area but was just curious your thoughts specifically. Thanks Man!

Brendon

1 Reply

Joshua Davies

Rental Property Investor · Yorba Linda, CA · Member since 2017 · 140 posts · 58 votes

8y

Hi Brendon, Sounds like you have a good plan! I am in the same boat as you, currently living in Orange County, CA and looking for opportunities in other states. Moving here from the UK, I find CA very expensive to invest in and the numbers don’t make sense for me personally. A few months back I decided out of state was the best way to go and have narrowed down a few areas. I have an investor from the UK that is willing to finance the deal so now it is just a matter of finding he right property. I would love to chat to you more about investing in general and swap some ideas.. let me know if you have any free time as we are pretty close to each other! Take Care, Josh

0 Reply

Jonathan McGee

Rental Property Investor · Memphis, TN · Member since 2017 · 155 posts · 151 votes

8y

Brendon Everswick Different areas for different strategies. For starting out in Memphis, I’d suggest looking into the mid level areas like 38122, east side of 38128, 38134, 38141 and 38119. You can stay under the 100k mark and generally make a safe bet until you “study the streets” in the other areas. The suburbs are popular but you’d want to spend in the right spots. I’ll shoot you a PM!

2 Reply

Steve Kontos

Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes

8y

@Brendon Everswick

@Joshua Davies

Building a solid team in the area you are going to invest in is crucial. That could literally make or break a deal. Proper due diligence is required to achieve that so just keep that in mind. I always recommend talking to successful out of state investors first and learn the ropes a bit before spending your money on a deal. Best of luck!

0 Reply

Brendon Everswick

OP

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

8y

Originally posted by @Steve Kontos:

@Brendon Everswick

@Joshua Davies

Building a solid team in the area you are going to invest in is crucial. That could literally make or break a deal. Proper due diligence is required to achieve that so just keep that in mind. I always recommend talking to successful out of state investors first and learn the ropes a bit before spending your money on a deal. Best of luck!

Thanks Steve for your thoughts I'll be sure to keep you posted on how things develop.

1 Reply

Brendon Everswick

OP

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

8y

Originally posted by @Jonathan McGee:

Brendon Everswick Different areas for different strategies. For starting out in Memphis, I’d suggest looking into the mid level areas like 38122, east side of 38128, 38134, 38141 and 38119. You can stay under the 100k mark and generally make a safe bet until you “study the streets” in the other areas.

The suburbs are popular but you’d want to spend in the right spots.

I’ll shoot you a PM

I'll keep an eye out for your PM and take a look at those areas; thanks Jonathan!

0 Reply

Brendon Everswick

OP

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

8y

@Joshua Davies

Josh, how you doing? Your not to far up the freeway from me. How long you been in the states? I'm always up for chatting about ideas and swapping ideas. I'll shoot you a PM and we can connect some time. All the best!

0 Reply

Joshua Davies

Rental Property Investor · Yorba Linda, CA · Member since 2017 · 140 posts · 58 votes

8y

Sounds good Brendon! I will look out for your PM!

0 Reply

Steven Gesis

Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 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

KISS Method (Keep it simple stupid : ) )

A Simple Guide for Buying Out of State Turnkey Investment Property

0 Reply

Justin R.Pro Member

Rental Property Investor · San Anselmo · Member since 2015 · 659 posts · 600 votes

8y

Good job starting your education. I would start analyzing properties each day in all of those markets you mentioned. You don't need to do a comprehensive analyses, just a quick one with estimated numbers.

If you decided to engage Indianapolis let me know. I have invested in Hamilton County which is a suburban community just to the north of Indy. This area draws a better tenant pool with its great school districts, and modern housing.

0 Reply

Vanessa Romero

Investor · Anaconda, MT · Member since 2017 · 9 posts · 4 votes

8y

I too believe that there is a lot of underrated potential in many of the smaller, slightly rural, western Montana towns. I moved to Anaconda about a year ago and can only see this place growing. Many of the transplants in this area have come for the quality of life, access to the outdoors, and fantastic hunting and fishing. Yet, somehow, it remains undiscovered.

As @Michael Nosbaum said, it's totally undiscovered and absolutely gorgeous. However, some of the turn-offs might be that Anaconda and Butte happen to be one of the largest superfund sites in the country, the schools aren't great, and it's been relatively depressed from a socioeconomic standpoint for the last 30 years.

Land and housing is very very affordable here and it's not uncommon to pay <$50/sqft. You won't find those prices almost anywhere that is this beautiful and mountainous.

Finding a solid property manager has also been a bit of a problem for me as well. It seems anybody reliable or that has a good reputation lives in Butte or elsewhere and isn't as interested in managing anything where they have to drive very far. Perhaps that's an opportunity out there for a savvy, investor/manager willing to relocate.

@Josiah Pisel I agree with what you've said about Butte. I know of a few investors who are starting to look there very seriously. In fact, I was there this afternoon with a new agent and he mentioned that he had sold quite a few homes this fall to investors out of state. The university's nursing program has really been booming, but with oil prices down, ive heard the petroleum engineering program has taken a hit in their numbers. However, I also heard they're about to open up a very large new dorm which may impact demand for off-campus housing.

@Michael Nosbaum If you come through Butte or Anaconda, look me up.

0 Reply

Elizabeth Wilson

Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes

8y

@Brendon Everswick - First of all congrats on starting in the awesome world of REI! I love it when folks start really moving in that direction. :)

I can't tell you how often I get a PM with the exact same statement/question you had: "I am in the process of finding a Investor Friendly Real Estate Agent, Property Manage & Contractor". I'll tell you the same thing I tell everyone else: That process is really hard - especially for OOS Investors. I'm sure there are folks who don't struggle as much as others, but from our experience finding/managing those rolls is a challenge. You didn't mention if you were planning on managing the rehabs or not and that would make a difference.

Long thought short: if this were my first investment property and I were looking to buy low and rehab and have a PM company for the first time, I would strongly consider your househacking idea. That would give you some great experience. And you'd be moving to some cool places. :)

Best of luck and keep us posted!

1 Reply

Finding my First Out of State Deal

Finding my First Out of State Deal

Most Popular Reply

43 Replies