Advice: New Investor/Small but Mighty Portfolio/ Long Term Game Plan

Shaylynn O'Leary

OP

New to Real Estate · Central Oregon · Member since 2020 · 23 posts · 40 votes

@Jaycee Greene no connections except for connecting with one realtor in St. Louis this last spring.

Jaycee GreenePro Member

Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes

@Shaylynn O'Leary well, that's at least someone with "eyes and ears" in the actual market.

What type of properties are you looking to add to your portfolio? SF and 2-4 MF assume? And is your purchase price target $150k, or is that the amount of equity you have to invest? And are you looking for turn-key properties or something along the lines of a "fixer upper"?

[email protected]

Shaylynn O'Leary

OP

New to Real Estate · Central Oregon · Member since 2020 · 23 posts · 40 votes

Quote from @Jaycee Greene:

@Shaylynn O'Leary well, that's at least someone with "eyes and ears" in the actual market.

What type of properties are you looking to add to your portfolio? SF and 2-4 MF assume? And is your purchase price target $150k, or is that the amount of equity you have to invest? And are you looking for turn-key properties or something along the lines of a "fixer upper"?

That is very true! I think starting out SF and then moving to small MF. My target purchase price is ideally under $150k as my long term goal is to pay them off as quickly as possible. I would like them to cash flow at least $150 a month just so the property sustains itself. The cash flow will be reinvested into the property in some capacity. I'm not looking to replace my w2 income with it. I'm mostly interested in the long term gratification when the properties are owned free and clear. Since it will be out of state, I'm looking for mostly turn key or just cosmetic fixers.

Jaycee GreenePro Member

Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes

@Shaylynn O'Leary OK, that's a good start. At that price point, are you targeting a certain number of BRs? Are you open to Section 8 rentals or do you want to stay away from that?

Given my familiarity with STL, I did a quick search and found this one currently on the market: https://www.redfin.com/MO/Saint-Louis/3327-Dix-Ave-63114/hom.... Does something like this appeal to you? Ironically I grew up less than 10 minutes from this address (I currently live about 40 minutes away), so I still know the area well.

[email protected]

Kristine Wights

Real Estate Agent · Investor Friendly Agent, Dayton & Cincinnati Ohio · Member since 2024 · 7 posts · 5 votes

I’m a west coast transplant now in Ohio. You can spend $150-200k and easily hit 1%. I work with OOS investors from similar west coast inflated markets to make some passive income here on great properties!

Good luck in your journey! :)

Ryan IrwinPro Member

Investor · Ankeny, IA · Member since 2022 · 161 posts · 130 votes

Quote from @Shaylynn O'Leary:

Sounds like we have similar focus (I'm in Iowa)! I just was on BP's Real Estate Rookie podcast and talked about the small and mighty game plan. Here's the link below if you want to take a listen. I agree with what @Jaycee Greene said, having local connections accelerates all aspects of out of state investing. Happy to connect and talk more!

;list=PL-okcLQEqzRFn9RVmVn5FUAql8Yk9l1K1

Jonathan Bock

Accountant · Bryn Mawr, PA · Member since 2023 · 409 posts · 321 votes

@Shaylynn O'Leary

I like creativity in your own market compared to chasing cash flow across the country.

Not too worry you will have plenty of people selling the dream to you.

4 Reply

Sam McCormackBusiness Member

Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes

[email protected]859-443-4952

Quote from @Shaylynn O'Leary:

Hello, I' m a newer investor in the process of getting my first property under contract near where I currently live. I live in a good, appreciating market where the average home price is above $700,000. Not a great cash flowing market. The state that I live in is also not landlord friendly. My plan is to have a small but mighty real estate portfolio, much like Chad Carson's book. I want to use the profits from flipping in my home market to obtain and pay off properties in a better cash flowing, landlord friendly market. Initially, the properties that I buy in another market don't have to cash flow a lot, my metric is $150, as I'm focused on the long term gain when they're paid off and I have a W2 and am also a realtor. I'm not looking to leave my W2 tomorrow. However, my hold up is what market to look at that will help me meet my goals. I have looked into these markets: St. Louis, MO, Indianapolis IN, Columbus OH, Cincinnati OH, and Columbia SC. Does anyone have any advice on which direction to go? Thank you!

Shooting you a message now about Cincinnati

Sam McCormack Realtor

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Jimmy LieuBusiness Member

Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes

[email protected]614-300-7535

Quote from @Shaylynn O'Leary:

Hello, I' m a newer investor in the process of getting my first property under contract near where I currently live. I live in a good, appreciating market where the average home price is above $700,000. Not a great cash flowing market. The state that I live in is also not landlord friendly. My plan is to have a small but mighty real estate portfolio, much like Chad Carson's book. I want to use the profits from flipping in my home market to obtain and pay off properties in a better cash flowing, landlord friendly market. Initially, the properties that I buy in another market don't have to cash flow a lot, my metric is $150, as I'm focused on the long term gain when they're paid off and I have a W2 and am also a realtor. I'm not looking to leave my W2 tomorrow. However, my hold up is what market to look at that will help me meet my goals. I have looked into these markets: St. Louis, MO, Indianapolis IN, Columbus OH, Cincinnati OH, and Columbia SC. Does anyone have any advice on which direction to go? Thank you!

Hi Shaylynn! I'm an investor in Columbus OH myself and moved here from Portland OR. We still find deals here that meet the 1% rule, positive cash flowing, and have tons of potential for appreciation. The city's macroeconomics is looking great - lots of population and job growth due to the booming tech scene and many companies choosing to move and develop here. The price points are still very affordable, around $120k-$180k. I own a 7-figure rental portfolio here so I can vouch that the rules are super landlord-friendly. Ideally, you want to look for markets with a growing economy, diverse industries, and growing population that indicates strong rental demand. Happy to connect and answer any questions you may have.

Jimmy Lieu, Red 1 Realty4.9122 Reviews

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Austin WolffPro Member

Rental Property Investor · Los Angeles, CA · Member since 2024 · 139 posts · 134 votes

Quote from @Shaylynn O'Leary:

Hello, I' m a newer investor in the process of getting my first property under contract near where I currently live. I live in a good, appreciating market where the average home price is above $700,000. Not a great cash flowing market. The state that I live in is also not landlord friendly. My plan is to have a small but mighty real estate portfolio, much like Chad Carson's book. I want to use the profits from flipping in my home market to obtain and pay off properties in a better cash flowing, landlord friendly market. Initially, the properties that I buy in another market don't have to cash flow a lot, my metric is $150, as I'm focused on the long term gain when they're paid off and I have a W2 and am also a realtor. I'm not looking to leave my W2 tomorrow. However, my hold up is what market to look at that will help me meet my goals. I have looked into these markets: St. Louis, MO, Indianapolis IN, Columbus OH, Cincinnati OH, and Columbia SC. Does anyone have any advice on which direction to go? Thank you!

I think those are all good picks. Just note that Kansas City has a higher population growth rate than St. Louis if you're considering MO.

Also, I'd consider looking at on-market deals in these cities immediately to see which markets will work best for you in real-time.

When I was considering buying in Indianapolis vs Fayetteville, I couldn't decide between the two so I looked for deals in both. Once something caught my eye, that's when I picked up the phone to learn more about the market and neighborhood.

The markets you mentioned are all good for cash flow and appreciation-potential. Start looking now; don't get caught in analysis paralysis.

Dennis Knapp

Member since 2024 · 26 posts · 20 votes

Quote from @Kristine Wights:

I’m a west coast transplant now in Ohio. You can spend $150-200k and easily hit 1%. I work with OOS investors from similar west coast inflated markets to make some passive income here on great properties!

Good luck in your journey! :)

can i ask what OOS investors is? thank you!!

Kristine Wights

Real Estate Agent · Investor Friendly Agent, Dayton & Cincinnati Ohio · Member since 2024 · 7 posts · 5 votes

Out of state :)

Quote from @Dennis Knapp:

Quote from @Kristine Wights:

I’m a west coast transplant now in Ohio. You can spend $150-200k and easily hit 1%. I work with OOS investors from similar west coast inflated markets to make some passive income here on great properties!

Good luck in your journey! :)

can i ask what OOS investors is? thank you!!

Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

@Shaylynn O'Leary

i understand the frustration of living in a high cost market and looking at the appealing price points in those other markets. the only way i'd encourage you to invest in one of them though is if you're actually going to put time and effort into visiting and building a team and employing some kind of strategy. i just don't see how buying a few on-market properties in a random market gets you very far. they're often much more expensive than they appear because they have deferred maintenance that has been adding up over decades. they look like they'll cash flow a few hundred dollars a month but then you have a rough tenant turnover, or a big capex item come up, and boom - your cash flow is gone for 5 or 10 years.

here are two really good threads to read.

Overleveraging, net worth, cash flow and headache factor

Baltimore - a path to never-ending pain

happy to help further.

Greg W.

Buy and Hold Investor · Alexandria, VA · Member since 2013 · 181 posts · 51 votes

If you don't really need the cash flow now and you are going more for appreciation, stay local. Being a realtor, you already know the area, you know contractors and you know what's happening in the city. You don't have to fly halfway across the country to try and figure all of that out. You have the flexibility to show your own units and manage turnovers, etc.

I see a couple of nice multi-family properties in your area for sale. If you are renting to professionals, you shouldn't have to worry about the landlord/tenant laws. If the laws are still concerning to you, then buy a commercial property, like an office or industrial property, in your area.

I see a couple of interesting options on Loopnet. An industrial condo for $450k built out as a brew pub (know anyone that wants to run one?). A downtown commercial building for $525k that could be your new office.

At the end of 25 years, what do you want to own and where do you want to own it?

Bud Gaffney

Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes

Don't forget to budget for capital expenditures!

Bud Gaffney

Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes

Other than that... GO FOR IT!

Trevor Finn

Real Estate Consultant · Columbia, MD · Member since 2017 · 160 posts · 55 votes

Congrats @Shaylynn O'Leary on taking the first steps in your investing journey! Your plan to flip in your market and reinvest in a cash-flowing, landlord-friendly market is smart. All the markets you mentioned are solid choices for affordability and long-term growth potential.

If you’re looking to narrow it down, consider Indianapolis or Columbia, SC, as both have strong rental demand, landlord-friendly laws, and stable economies. Since your metric is modest cash flow with long-term appreciation, focus on neighborhoods with a history of steady growth and tenant stability.

As a realtor, you already have the skills to analyze deals—so trust your instincts and take action! You’re building a thoughtful plan that’s set up for success. Good luck!

Becca F.

Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes