Out of state investing

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Out of state investing

Stephen Rodrigues
Fall River, MA · Member since 2017 · 7 posts · 4 votes

We sold our SFH rental last year and want to jump back into the rental game.

We live in Massachusetts and entry points are high. With that we’ve been looking out of state.

my wife did a travel contract during Covid, living in Biloxi and working in Gulfport. I was intrigued by the market and it appears you can get into SFH relative cheap. Keesler Air Force base being near by was what peaked my interest, as you'll always have steady renters.

We’d like to do section 8 or military. The idea of buying out of state seems overwhelming. I have reached out to multiple realtors in the area and most have been unresponsive or not very impressive.

How are you all making your connections and building a team outside of your area? Any other tips for doing the out of state thing? Any of you in the Gulfport market?



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Joel Case
Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
3y
Quote from @Stephen Rodrigues:

Did you use the BP agent finder? I know that a few of the local realtors who are active at the REIA are on here, including myself. The Biloxi market, in my opinion, is a strong market ripe for investing. BP had an interesting article: https://www.biggerpockets.com/...

The barrier to entry may be a little higher than the Ohio market, but having Casinos, the Gulf of Mexico, Keesler Air Force Base, the Seabee base, and Stennis Space Center make this more appealing to me than the other budget markets. I am a bit biased since I live and invest in the area. 

Feel free to reach out to me if you have any questions or want to discuss investing in the area, I am always happy to help. 

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Stephen Rodrigues:

    We sold our SFH rental last year and want to jump back into the rental game.

    We live in Massachusetts and entry points are high. 


     Do what investors from around the world are doing buy rentals in OH

    Good luck

    0Reply
  • Stephen Rodrigues
    OP
    Fall River, MA · Member since 2017 · 7 posts · 4 votes
    3y
    Quote from @Bob S.:
    Quote from @Stephen Rodrigues:

    We sold our SFH rental last year and want to jump back into the rental game.

    We live in Massachusetts and entry points are high. 


     Do what investors from around the world are doing buy rentals in OH

    Good luck

    Definitely open to other markets! Quick look at Cleveland looks really good. 
    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Stephen Rodrigues:
    Quote from @Bob S.:
    Quote from @Stephen Rodrigues:

    We sold our SFH rental last year and want to jump back into the rental game.

    We live in Massachusetts and entry points are high. 


     Do what investors from around the world are doing buy rentals in OH

    Good luck

    Definitely open to other markets! Quick look at Cleveland looks really good. 
    You should’ve looked six years ago. We were getting 25% net cap rates on cash purchases.now 10% 
    0Reply
  • Josh YoungPro Member
    Rental Property Investor / REALTOR® / Property Manager · Gilbert, AZ · Member since 2023 · 385 posts · 421 votes
    3y

    @Stephen Rodrigues I can certainly understand wanting to invest out of state when you have high prices and high property taxes in Massachusetts, but I would be cautious about investing in an area that has a flat or even declining population, it might look like you are going to get some cash flow right out of the gate in year 1, but you will never get the big win of appreciation which is much greater than cash flow when it happens and if you never get the appreciation you won't get rent price gains, so your cash flow won't appreciate as much either.  If you are looking for a specific market, I'd search the forums in that area and find an agent that is also an investor who is giving good advice on the forums. 

    If you have any interest in learning about the greater Phoenix area I'd be happy to chat with you, I'm an investor here and an agent, and I help other investors find, analyze, buy and manage properties.  We have population growth, job growth, and a lot of development happening here.

    [email protected]802-274-8121
    1Reply
  • Joel Case
    Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
    3y
    Quote from @Stephen Rodrigues:

    Did you use the BP agent finder? I know that a few of the local realtors who are active at the REIA are on here, including myself. The Biloxi market, in my opinion, is a strong market ripe for investing. BP had an interesting article: https://www.biggerpockets.com/...

    The barrier to entry may be a little higher than the Ohio market, but having Casinos, the Gulf of Mexico, Keesler Air Force Base, the Seabee base, and Stennis Space Center make this more appealing to me than the other budget markets. I am a bit biased since I live and invest in the area. 

    Feel free to reach out to me if you have any questions or want to discuss investing in the area, I am always happy to help. 

    1Reply
  • Stephen Rodrigues
    OP
    Fall River, MA · Member since 2017 · 7 posts · 4 votes
    3y
    Quote from @Joel Case:
    Quote from @Stephen Rodrigues:

    Did you use the BP agent finder? I know that a few of the local realtors who are active at the REIA are on here, including myself. The Biloxi market, in my opinion, is a strong market ripe for investing. BP had an interesting article: https://www.biggerpockets.com/...

    The barrier to entry may be a little higher than the Ohio market, but having Casinos, the Gulf of Mexico, Keesler Air Force Base, the Seabee base, and Stennis Space Center make this more appealing to me than the other budget markets. I am a bit biased since I live and invest in the area. 

    Feel free to reach out to me if you have any questions or want to discuss investing in the area, I am always happy to help. 


     Appreciate the feed back! I’ll reach out directly. 

    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Stephen Rodrigues:
    Quote from @Bob S.:
    Quote from @Stephen Rodrigues:

    We sold our SFH rental last year and want to jump back into the rental game.

    We live in Massachusetts and entry points are high. 


     Do what investors from around the world are doing buy rentals in OH

    Good luck

    Definitely open to other markets! Quick look at Cleveland looks really good. 

     Yep  10% net caps are still attainable on cash purchases. ALL my personals are always 20% net caps. I just picked up a 7 unit, that will about 20% net cap,  

    All the best 

    0Reply
  • David Leggett
    Real Estate Broker · Cleveland, OH · Member since 2018 · 227 posts · 133 votes
    3y
    It's true that Cleveland hasn't been famous for it's appreciation over the last 20 years, and is well known for it's great cash flow, but that's not necessarily true for my clients who bought prior to 2019 and now their properties are worth 20-30% more.  Appreciation is hard to judge and I think it's better to judge current market conditions, than hypothetical outcomes.  The medical infrastructure in this area is booming and companies like the Cleveland Clinic and Metro hospitals are pouring billions in this area, creating thousands of good paying jobs, which is one of the reason the rental market in this area is so strong.   That's why it's important to find experts in each area you're considering, who know each market intimately and can give you accurate feedback.
    0Reply
  • Stephen Rodrigues
    OP
    Fall River, MA · Member since 2017 · 7 posts · 4 votes
    3y
    Quote from @Bob S.:
    Quote from @Stephen Rodrigues:
    Quote from @Bob S.:
    Quote from @Stephen Rodrigues:

    We sold our SFH rental last year and want to jump back into the rental game.

    We live in Massachusetts and entry points are high. 


     Do what investors from around the world are doing buy rentals in OH

    Good luck

    Definitely open to other markets! Quick look at Cleveland looks really good. 

     Yep  10% net caps are still attainable on cash purchases. ALL my personals are always 20% net caps. I just picked up a 7 unit, that will about 20% net cap,  

    All the best 


     I’d be interested in chatting. I would not be a cash purchase. Trying to make a move before the end of the summer.

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Stephen Rodrigues:
    Quote from @Bob S.:
    Quote from @Stephen Rodrigues:
    Quote from @Bob S.:
    Quote from @Stephen Rodrigues:

    We sold our SFH rental last year and want to jump back into the rental game.

    We live in Massachusetts and entry points are high. 


     Do what investors from around the world are doing buy rentals in OH

    Good luck

    Definitely open to other markets! Quick look at Cleveland looks really good. 

     Yep  10% net caps are still attainable on cash purchases. ALL my personals are always 20% net caps. I just picked up a 7 unit, that will about 20% net cap,  

    All the best 


     I’d be interested in chatting. I would not be a cash purchase. Trying to make a move before the end of the summer.

    All the best to you 

    0Reply
  • Becca F.
    Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    @Stephen Rodrigues

    I'm in California and buying in Indiana now. I used to live there so I know which areas are Class A, B and C.  I don't know anything about the Gulfport area. I've considered the Florida Panhandle (Fort Walton Beach, Navarre Beach, West Panama City) - the property tax rate is low, not sure about insurance costs. There's also a military base and options to do mid-term rentals and short-term rentals (I probably wouldn't do AirBnb). Nashville Tennessee is also on my list. 

    I have a Class A SFH in the Indianapolis metro area that I've owned for a while. I recently closed on a deal from networking with a Realtor on BP, Class C SFH moving up to Class B in Indianapolis. It was a turnkey SFH that I negotiated with the seller where we met in the middle between my original offer and the list price. Tenant is moving in soon. My Realtor has a team with contractors, inspectors, etc. I have property managers for both properties so I'm pretty hands off - it's well worth the management fee, which is 10% (some PMs will negotiate slightly lower with multiple properties). I trust my realtor and her team so I would comfortable buying a BRRRR or doing a fix and flip. There are several Indy people (real estate agents, investors and PMs) on BP so they can also give you more feedback. I can DM you her contact Info to chat to see if your goals would align with Indianapolis market, if you'd like.

    Here's an article about the Indianapolis market:

    https://www.noradarealestate.c...

    1Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    3y

    You can definitely invest out of state successfully, but it's something you need to be very careful with. I've seen people lose their shirt doing it (but I've also seen people make good money that way). Make sure to vet your property manager very carefully and go there to visit hte property before buying. I would also buy in better areas than you would be willing to do where you live.

    I wrote an article about it a while back you might find helpful: https://www.biggerpockets.com/... 

    And @David Greene's book is worth reading too: https://www.amazon.com/Long-Di...

    Podcast Guest on Show #121
    0Reply
  • Account Closed
    Columbus, OH · Member since 2023 · 427 posts · 254 votes
    3y
    Quote from @Stephen Rodrigues:

    We’d like to do section 8 or military. The idea of buying out of state seems overwhelming. I have reached out to multiple realtors in the area and most have been unresponsive or not very impressive.

    How are you all making your connections and building a team outside of your area? Any other tips for doing the out of state thing? Any of you in the Gulfport market?



    Use BP and network. Find local investors who have experience and success in that area, and get some of their contacts...follow the money. Do not go into a remote deal with realtors who are unresponsive and unimpressive! You will need someone with great knowledge and experience in that market. Same applies for PM.
    0Reply
  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    3y

    @Stephen Rodrigues

    Just please double check all the numbers yourself. Don't trust a property manager or realtor you've never met, verify EVERYTHING. Look at the comps, market rent figures, neighborhood demographics. Do they have a have an  inspector they like to use? Red flag, find your own independent home inspector to look at the subject. The name of the game is protect yourself. FYI - I would be looking in Huntsville AL for rentals. 

    [email protected]413-348-8346
    Freedom Capital Funding, LLC523 Reviews
    WebsiteView Page
    0Reply
  • Paul Stamm
    Real Estate Consultant · IN · Member since 2021 · 139 posts · 85 votes
    3y

    Indianapolis is a great market for out of state investors. With lower price points, cash flow, and solid appreciation, Indy really does it all. Happy to share more if you're interested. Wish you the best!

    1Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    3y

    If you're open to other markets I'd also take a look at Detroit.

    It's been getting more attention lately and not the over saturated eyeballs I'm seeing in Ohio (no offense to the myriad OH agents here).

    I like to stay ahead of the crowd and I own 12-doors in Detroit proper that have done extremely well on both a cash flow and appreciation standpoint. 

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Stephen Rodrigues- thanks   1)  I would recommend  asking for some  referals for  agents  from  people that you know in the area ( if applic)    2)  if you need to use  financing - get  a free pre approval in  place  for any scenario you want to use  and ask the  mortgage person for a  realtor  referral or two  to connect with   3)  visit the area for an  extended  amount of time to get  some  connections  cemented and also  to look at some  options  so you can  determine if this is  worth proceeding with 

    0Reply
  • Brett MerrillBusiness Member
    Rental Property Investor · Ludlow, MA · Member since 2016 · 114 posts · 48 votes
    3y

    Hi @Stephen Rodrigues I would definitely start by finding the featured agent in your area of choosing and or the investor most active on BP for that area. Most times they will be the ones with the most knowledge for that area. 

    0Reply
  • Michael S.
    Huntsville, AL · Member since 2018 · 578 posts · 864 votes
    3y

    @Matthew Crivelli - very, very few deals to be had in Huntsville right now, and cash flow in A/B neighborhoods is very challenging at present.  

    0Reply
  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    3y
    Quote from @Michael S.:

    @Matthew Crivelli - very, very few deals to be had in Huntsville right now, and cash flow in A/B neighborhoods is very challenging at present.  

    I have 4 rental loans in my pipeline currently that are all in Huntsville. Over the last few years, we have closed on a ton of cash flowing rentals in this market. What types of rates are you seeing? With rates in the mid 7's we are not having trouble covering the 1.1 DSCR on SF or multi family in Huntsville. 
    [email protected]413-348-8346
    Freedom Capital Funding, LLC523 Reviews
    WebsiteView Page
    0Reply
  • Michael S.
    Huntsville, AL · Member since 2018 · 578 posts · 864 votes
    3y

    @Matthew Crivelli - you noted:  
    "Over the last few years, we have closed on a ton of cash flowing rentals in this market".

    Absolutely, we bought a bunch of properties that cash flowed in years past as well. The last few years are not a valid metric for the current state of deal opportunities that cash flow in Huntsville right now. The last solid cash flowing deal we found was in November (and it was on the MLS which is amazing). We bought a property in March that we were going to LTR, but we may flip it as the numbers are just not great for LTR right now.

    0Reply
  • JJ Harris
    Rental Property Investor · Gulfport, MS · Member since 2015 · 34 posts · 17 votes
    3y

    Stephen, you're interested in the MS Coast for the same reasons many other people are.  MS is a great environment for RE investing right now.  There are buy-and-hold rentals available and our rental rates have risen considerably in the last 3 years keeping the demand high and inventory low.  I'm a RE broker myself, but I focus exclusively on management, so I would refer you to one of the local brokers who specialize in investment transactions.  I can send you a couple of names if you're interested. 

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Stephen Rodrigues:

    We sold our SFH rental last year and want to jump back into the rental game.

    We live in Massachusetts and entry points are high. With that we’ve been looking out of state.

    my wife did a travel contract during Covid, living in Biloxi and working in Gulfport. I was intrigued by the market and it appears you can get into SFH relative cheap. Keesler Air Force base being near by was what peaked my interest, as you'll always have steady renters.

    We’d like to do section 8 or military. The idea of buying out of state seems overwhelming. I have reached out to multiple realtors in the area and most have been unresponsive or not very impressive.

    How are you all making your connections and building a team outside of your area? Any other tips for doing the out of state thing? Any of you in the Gulfport market?




     If you are cash the last thing yo need is a realtor , they do not have the deals. Simply connect with those doing deals, they will have everything you need

    Good Luck 

    0Reply
  • Villy Ellinger
    Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 219 posts · 275 votes
    3y

    @Stephen Rodrigues have you considered Northwest Florida (the Panhandle from Pensacola to Panama City Beach)? It's close to MS and definitely lots of military presence. Bases in Pensacola, Navarre, Fort Walton Beach, PCB... all very close to each other and driving quite a lot of demand. Also, we are experiencing housing shortage here, so rentals are in demand. Another benefit of the Panhandle market is the versatility of what you can do with a property since we also have a lot of seasonal and vacation rental demand. As for section 8, Pensacola might be an option. 

    0Reply
  • Ben Scarborough
    Realtor · Gulf Shores, AL · Member since 2020 · 153 posts · 76 votes
    3y
    Quote from @Stephen Rodrigues:

    We sold our SFH rental last year and want to jump back into the rental game.

    We live in Massachusetts and entry points are high. With that we’ve been looking out of state.

    my wife did a travel contract during Covid, living in Biloxi and working in Gulfport. I was intrigued by the market and it appears you can get into SFH relative cheap. Keesler Air Force base being near by was what peaked my interest, as you'll always have steady renters.

    We’d like to do section 8 or military. The idea of buying out of state seems overwhelming. I have reached out to multiple realtors in the area and most have been unresponsive or not very impressive.

    How are you all making your connections and building a team outside of your area? Any other tips for doing the out of state thing? Any of you in the Gulfport market?




    A ton of section 8 opportunities in Mobile, AL and a ton of military opportunities in Pensacola, FL. Let me know if you would like to jump on a call to discuss!

    0Reply
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