Out of State Investing -- Any Favorite Places?

102 Replies

Hi everyone!

I'm a new real estate investor based in New York City. I'm interested in out of state rental properties, preferably multi-unit (duplex, triplex) for buy and hold around the 80K-100K purchase price. 

I would love to know from this amazing community here if you have any areas in the country you find particularly attractive and why they work so well for you.

If you're willing to share your stories, you'll make me smile (consider this your good deed of the day) and I'm sure many others on here will smile back at you too (multiple good deeds in one day!).

Hope to hear from some of you talented BP people on here.

Alexandra

You may want to consider deals significantly bigger than a 3 family for out of state investing.  You'll struggle with quality property management for smaller deals that are not in your backyard.  A good ballpark would be to go shopping for something in the arena of 100 units+, that way it will be worth your while.

Hi Chris,

Your message didn’t show up in my inbox, so I’m only seeing this now! Thanks very much for your input on this. I think 100 units is way out of my budget range right now, so I need to find a way to make a smaller investment work before I can scale up. I live in New York, so the entry level is extremely expensive which is why I’m trying to find a way to make out of state investing work. I’ve read David Greene’s “Long Distance Real Estate Investing” which gave me the impression it was doable. Have you done a lot of out of state investing? Where? What kind of properties have you invested in? Have you done 100+ units in a single investment? If yes, how long had you been “in the game” when you invested at that scale?

Thanks again for taking the time to offer your input!

Best,

Alexandra

Upstate NY, Hartford CT and surrounding, Providence RI all have fairly good income small multi-family.  Many people also invest in Philadelphia.  They are not very far from NY.

Personally I have success in Hartford and Providence as out of state investor.

@Alexandra Fisher Providence, RI, and New Bedford, MA are close enough to Boston and not too far from you.

Hey @Alexandra Fisher , no offense to anyone here but yeah, you def. don't have to start with 100+ units ha.  You can find plenty of excellent PM's who would love to take on a duplex.  Especially if this might be the first of more purchases.  I LOVE Providence as a possible investment,, and have been looking there myself, but a duplex or triplex there would be more in the 200-350K range I would think, depending on how much work you would need to put into it.  If you're looking for basically a "good to go" property I think you're probably in the 350K range.  Same for anything in MA outside of Boston.  Frank who commented above would be the expert on Providence though!

If you're looking for 80-100K you're probably looking for the mid-west. There are plenty of places in the Midwest where you can find that price point but I'd avoid any areas with negative population growth (Cleveland etc). I personally started with investing in both KC and Indy and since have fallen in love with Indy and focus there now. Now, I'm sure that you'll get some advice from folks to avoid small multi-families in Indy because a lot of them are in rougher areas. To me that's advice from five years ago... I think the younger generation is cool with MF housing more than older folks. Still I see the logic/ concern in why would someone want to live in a $600 a month duplex instead of a $800 a month SFH? That class of tenant for small MF's in the mid-west might be something that you would want to avoid. It's good to remember that the midwest isn't like NYC (or Boston where I'm from) where everything is a multi-family building and living in a single family is something only for crazy wealthy folks or the suburbs. In the midwest cheaper single family houses are right close to the down town so you do have to consider the difference in your tenant base if they really can't spring the extra $200-300 a month so that they don't have to share a wall with someone else. But... I think you can mitigate that risk a bit if you buy as close as you can to downtown or the "hip" Indy areas- Bates/ Hendricks, Garfield Park, Fountain Square (you won't get in there but you can get south Fountain) for that price you'll be ok. That might be more like 120-140k though if you can stretch a bit higher.

I think the key is to go side-by-side verse anything small MF where people are living above/ below each other as that will have lots more turn over. Indy has tons of great side by side duplexes.  David Greene's book is great.  I would first focus on finding a great realtor and seems like many in "investor friendly cities" are also hooked up with PM's as well so that's an easy way to build two members of your team.  Look for a realtor that also has contractors they use.  Almost every realtor has a lender they recommend too and bam there's your team!  Regardless of where you end up make sure you visit in person for a few days.  Stay in Airbnb's right in the neighborhood that you're considering and try to live like the locals for a bit and see what you think?   That's what I did first, flew out and met a ton of realtors.  Although the main property that I looked at in person ended up falling through I met some great team members and now I feel like I can buy from afar with confidence. Ok, this is long enough, hope this helps and good luck!

This post has been removed.

@Alexandra Fisher look into Jacksonville, FL. It's an area we really like for multi family.

  • #1 Projected wage Growth in 2018
  • #2 Job Growth with One Million People (3.5%)
  • #3 YOY Rent Growth
  • 46% Jobs in Business, Financial, Sales
  • 21,300 jobs were created in the last 12 months. 
Originally posted by @Alexandra Fisher :

Hi everyone!

I'm a new real estate investor based in New York City. I'm interested in out of state rental properties, preferably multi-unit (duplex, triplex) for buy and hold around the 80K-100K purchase price. 

I would love to know from this amazing community here if you have any areas in the country you find particularly attractive and why they work so well for you.

If you're willing to share your stories, you'll make me smile (consider this your good deed of the day) and I'm sure many others on here will smile back at you too (multiple good deeds in one day!).

Hope to hear from some of you talented BP people on here.

Alexandra

 Hello and welcome! Best of luck to you! 

@Alexandra Fisher - I would start my research in areas where you have close family and friends. They can serve as a sounding board for different neighborhoods and be a sanity check. Since real estate is a local game, being wrong by a few blocks over can have a huge impact in your profits. 

@Edward Liu , thank you so much for your suggestions! I'll definitely take a look at those markets, always so helpful to hear from other investors and what their experiences have been.

Thanks again for taking the time to share your experience!

@Adam Sankowski , thank you for your amazing and extremely detailed post! This is such helpful advice and input. I'll definitely take a look at the markets you're recommending as well as those that others have recommended on here. Also extremely helpful advice in terms of putting the team together. I'm slowly starting to get all my ducks in a row, so I should hopefully start moving ahead very soon, when I've done more thorough research. How many properties have you got in the Mid-West? And would you be interested in sharing how you put those details together?

Thanks again so much for your time, it's so fascinating reading about everyone's experiences and hugely motivating to see how people like you are making investments become a reality!

Originally posted by @Alexandra Fisher :

@Frank Patalano, thanks so much for your input. @Edward Liu made similar suggestions to you. Have you invested in those markets yourself?

 Yes. Currently have many units in the Providence Metro.

@James Wise , this is all such wonderful advice and helpful input! Thank you so much for taking the time to reply. Yes, turnkey properties are definitely something I've been looking into as well. Super helpful to get all this information. Thank you so much for taking the time to share!

@Matthew Baltzell -- thanks so much for the tip! There have been so many extremely helpful ones on here. I will definitely take a look. Thank you so much for taking the time to reply!

@David Kramer -- yes, I've heard that before. :) But because I'm not American, I don't have family here -- only friends in places where I've lived. In my case, that's New York and LA, both extremely expensive markets to get started in as a newbie investor. So, I need to suss out other markets that will work for me and find ways to get all the crucial information you mention. It's certainly more work this way, but doable, I think. And hopefully it will ultimately mean that I invest in a market that is most financially lucrative and makes most sense for me, my means and my abilities. :) Thank you again for taking the time to reply!

@Matthew Baltzell hey matthew i was looking into jacksonville fLorida do u have a investor friendly realtor and property manager? Private message me i appreciate it

@Josh Dane -- thank you! I'm going to start researching and running more numbers in the markets that have been mentioned here and will reach out when I have a good grasp. Thanks so much for taking the time to respond!

@Alexandra Fisher yea we love the Raleigh-Durham area of NC. Job and population growth has exceeded the national average while unemployment has steadily remained below the national average, which is exactly what we look for. Raleigh was listed #3 in the world for quality of living and Durham is seeing an average of 20 new people moving into the area each day. This has made investing more competitive but if you just turn your attention to the surrounding commuter cities you can still score some great deals.

We primarily focus on multifamily properties and have been fairly successful thus fair.

Hope that helps, best of luck in your search.

Ashton

@Alexandra Fisher take a look at the Southeast.  I'm in the Augusta market and the cost of living in these areas is significantly less than other parts of the country.  In Augusta, we have a military base, cyber command, 5 hospitals, medical college, university, and major industry and manufacturing.  The greater CSRA encompasses 13 counties.

You can certainly find a good property management company that is investor based to oversee management and help you get started.  With $80k-$100k you could potentially purchase 2 houses in the Augusta market.  Let me know if I can help.  Thanks.

Phillip Vera

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here