Newbie looking to buy my first home

Buying & Selling Real Estate
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Newbie looking to buy my first home

Narat Eungdamrong
San Diego, CA · Member since 2019 · 6 posts · 5 votes

Hi everyone,

I live in Socal and have a relatively well-paid and busy job that I love most of the time. Although I'd be happy to work this job well into my retirement, I'd like to start a real estate business. My main goal is not necessarily a cash flow to live on now, but rather appreciation potential in the future (time horizon 10-15 years).


I have about 80-100k I could deploy. I don't see any market here in CA that I'd feel good buying. What are some advices you have for a first time investor looking to buy out of state? How do you go about identifying the area to buy? We have family near Orlando, Greenville SC, and Pittsburgh but I don't know much about those markets. 

Our goal is to buy 1 property a year (~20-30k down payment) to diversify away from the stock market. 

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Andrew Collier
Member since 2019 · 1 post · 2 votes
5y

Hi Jonathan, I love in Orlando, FL and I see that you have a good contact/agent in Orlando that’s able to find good investment property. Would you be willing to share their contact info with me? Thanks!

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  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    It is great that you have options out of state but why aren't you comfortable with any CA market?  Of the cities you listed for long term growth I'd probably go with Orlando or Greenville

    0Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    If you are sure about going out of state, it is always wise to focus on markets where you have family as boots on the ground and people your trust to vet contractors or to use as property management. We have used friends for years to manage one-off properties in areas where we once lived or knew someone. It provides an extra layer of confidence when going OOS than you can't get easily by making connections on the Internet. Orlando is pretty solid and I have an investor-friendly agent contact there who is good at sourcing deals and finding what you want. I know there are others on BP as well.

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  • Gary Swank
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 822 posts · 255 votes
    6y

    @Narat Eungdamrong Hi Narat. Glad to see that Pittsburgh is one of your potential choices for real estate investing. Many investors are drawn to this area as the buy-in is a lot more conducive than other more saturated markets. The trick is to find the right property and as an out of state investor, the best advice I can give is to get with the people that know those markets your interested in. Having a team is so very important as you buy and manage remotely. Here in Pittsburgh, there are many options but condition of properties, value and neighborhoods change street by street. So feel free to reach out to someone that really knows the market inside and out. Best of luck to you....Gary

    0Reply
  • Narat Eungdamrong
    OP
    San Diego, CA · Member since 2019 · 6 posts · 5 votes
    6y
    Originally posted by @Aaron K.:

    It is great that you have options out of state but why aren't you comfortable with any CA market?  Of the cities you listed for long term growth I'd probably go with Orlando or Greenville

     Hi Aaron,

    Thanks for you reply. When I look at real estate market in socal, price to rent ration, regulation, and real estate tax does not seem that favorable to me. The only areas that I think I could potentially afford is Riverside/San Bernardino areas, but I don't see anything in the 100-150 range that I'd prefer to start out with.

    0Reply
  • Narat Eungdamrong
    OP
    San Diego, CA · Member since 2019 · 6 posts · 5 votes
    6y
    Originally posted by @Jonathan Greene:

    If you are sure about going out of state, it is always wise to focus on markets where you have family as boots on the ground and people your trust to vet contractors or to use as property management. We have used friends for years to manage one-off properties in areas where we once lived or knew someone. It provides an extra layer of confidence when going OOS than you can't get easily by making connections on the Internet. Orlando is pretty solid and I have an investor-friendly agent contact there who is good at sourcing deals and finding what you want. I know there are others on BP as well.

     Jon, 

    Great point. I myself am not very handy. My in law is in the villages, but I'm not sure how comfortable they'd feel doing small fixes. The other concern I have with Orlando is it seems very travel-dependent with all the resorts/conferences going on. How much housing price will suffer in the current climate still remains to be seen. 

    1Reply
  • Narat Eungdamrong
    OP
    San Diego, CA · Member since 2019 · 6 posts · 5 votes
    6y
    Originally posted by @Gary Swank:

    @Narat Eungdamrong Hi Narat. Glad to see that Pittsburgh is one of your potential choices for real estate investing. Many investors are drawn to this area as the buy-in is a lot more conducive than other more saturated markets. The trick is to find the right property and as an out of state investor, the best advice I can give is to get with the people that know those markets your interested in. Having a team is so very important as you buy and manage remotely. Here in Pittsburgh, there are many options but condition of properties, value and neighborhoods change street by street. So feel free to reach out to someone that really knows the market inside and out. Best of luck to you....Gary

     Hey Gary,

    Thanks for reaching out. My wife is from Pittsburgh, went to Pitt, and my father in law still lives in Moon. What do you think about the demographic in Pittsburgh? I see there is a general population decline but it sounds like there is some new young professionals relocating there for the tech industry. We were looking in the squirrel hill/east liberty and lawrenceville area.

    0Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Narat Eungdamrong yeah if you want to be in the $100-$150k price point SoCal isn't going to work and OOS is the option, however the real estate taxes are actually quite favorable compared to other states due to prop 13.  Price to rent ratios aren't great but that doesn't tell the whole story because contrary to popular belief a lot of things are cheaper in California, SoCal in particular; property taxes, insurance, and management are all more expensive for me out of state on property that is worth considerably less as a percentage of rent it is much more. 

    0Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
    6y

    Hi @Narat Eungdamrong. I am a full time Realtor®/investor in Orlando. Our market has been fantastic for the last 8 years or so. As you mentioned, the future is yet to be seen. We are still quite active here and our inventory has been low for some time. I believe will see a lot of short sales coming up as we have SO MUCH new construction which has driven our appreciation up since inventory is low. It is changing quickly, but a lot of our workforce is hospitality/tourism and fairly low wage. So I think those people will face hardships and are at risk of losing their homes. That is a good sign for landlords to capture them back as renters. We have so much hedge fund, International and investor money here that our market will stay solid. This is much different than when the markets were affected by the banks. I'm happy to discuss and help you with and be a point of contact for information here. I'm in Clermont, not too far from your relatives in the Villages, so happy to help.

    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Hi @Narat Eungdamrong, Columbus, OH is a great market to invest in. There is a lot of job and population growth which is prime for buy and hold investments! 

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

    Hi everyone,

    I live in Socal and have a relatively well-paid and busy job that I love most of the time. Although I'd be happy to work this job well into my retirement, I'd like to start a real estate business. My main goal is not necessarily a cash flow to live on now, but rather appreciation potential in the future (time horizon 10-15 years).


    I have about 80-100k I could deploy. I don't see any market here in CA that I'd feel good buying. What are some advices you have for a first time investor looking to buy out of state? How do you go about identifying the area to buy? We have family near Orlando, Greenville SC, and Pittsburgh but I don't know much about those markets. 

    Our goal is to buy 1 property a year (~20-30k down payment) to diversify away from the stock market. 

     I recommend you read this article on OOS investing

    https://www.biggerpockets.com/blog/core-four-real-estate-team

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  • Gary Swank
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 822 posts · 255 votes
    6y

    @Narat Eungdamrong  Thanks for the reply and question.  The previous census from now 10 years ago did imply decline in population.  Pittsburgh historically had an older population and it factored into the decline.  The new census should show differently.  Yes, there are many younger folks moving here thanks to our historically strong medical industry now combined with the growing tech industry, both which are drawing in many younger professionals and support staff.  Personally I'm looking forward to the results of the 2020 census for clarification of what we think is true.  Tech is a big driver of our growth which certainly has a direct influence on our real estate market.  Hope this helps...  Best of luck!

    0Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    6y

    @Gary Swank you can always start small and the scale when you begin to know a market. I have helped clients do that here in KC. You are on the right track. Be conservative on your first investment. Hope that helps.

    0Reply
  • Hung Nguyen
    Investor · Greenville, SC · Member since 2017 · 69 posts · 15 votes
    6y

    Hey @Narat Eungdamrong I am investing in the Greenville, SC market. I also live here, and work as an agent in this area. There is a booming fix&flip market here, so there are many opportunities to be able to find a buy&hold. 

    Reach out if you have any questions.

    0Reply
  • Kenneth Peagler
    Rental Property Investor · Pittsburgh, PA · Member since 2018 · 20 posts · 4 votes
    6y

    As someone that owns quite a bit of properties in the prime areas of PIttsburgh (Greenfield, Sq. Hill, Shadyside), I can tell you that they were great investments.  I bought many years ago while outsiders were still thinking of it as a steel town with declining industry.  All of my properties are rented out to medical professionals and international students.  You mentioned Moon, which is out by the airport - about 25-30 min outside of the city itself.  I think the city of PIttsburgh is a good place to invest as the cost of entry is still pretty low (although its rising) and there are steady industries - as Gary mentioned, both medical and tech.  Id find a realtor that knows the area and can speak to the trends that are happening. Im not a realtor and I live in Manhattan but I am a native from the heart of Pittsburgh (Shadyside) - so if you have any questions, I am also happy to help.   Good luck. 

    0Reply
  • Anthony Angotti
    Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    6y

    @Narat Eungdamrong You could likely get a Single Family in a decent area in Pittsburgh with 20-30k. Having family in the market is helpful because you can get an independent set of eyes on the property. 

    I have roughly 80 units in Pittsburgh now and am still investing here (I'm local), but also evaluating out of state for a bit of diversification. During my search I've been prioritizing areas with diverse local economies so that they aren't tied to one industry (I like that about Pittsburgh so I'm looking for others like it). Additionally I am looking for second tier type cities that aren't currently saturated with OOS (out of state) investors. The negative is that they don't have as much of an infrastructure (strong Prop Management) in place, but the lack of competition from other OOS investors helps that. Pittsburgh does have a lot of OOS investors, but there are still deals out there to be had. 

    Best of luck! 

    0Reply
  • Andrew Collier
    Member since 2019 · 1 post · 2 votes
    5y

    Hi Jonathan, I love in Orlando, FL and I see that you have a good contact/agent in Orlando that’s able to find good investment property. Would you be willing to share their contact info with me? Thanks!

    2Reply
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