Income properties in Midwest or SouthEast

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Income properties in Midwest or SouthEast

Matthew Swearingen
CA · Member since 2018 · 124 posts · 33 votes

I'm a first time investor living in CA. My research shows me that the MidWest is the invest at this moment. I am looking for homes with a price range of $50k to $100K in Trenton, Columbus,  (West Price Hill, Westwood and Delhi), Cleveland and Cincinnati , Atlanta GA, Kansas City Missouri, Wisconsin and Indiana. I have contacted a few agents and I tell them what I'm looking for and if they can locate C= and B properties in these areas with all the pertinent info such as occupancy rate, rents, property management company, etc. I have had a couple agents call back and give me a few listings but other than that not a whole lot of info. I explained to them I have never been outside Ca and I'm looking to buy 4 rentals to start with. They don't seem to motivated to make money. Why?

Also, can anyone give me insight as to the places to buy I mentioned above? Basically I go on Zillow and find homes in the price range (50-100k) and then find rentals in the same zip code and then decide if I can get at lease a $300 positive cash flow?

Is there software such as core logic that can give me data as far as home price and area growth, employment and home prices, rental prices so I dont have to rely on lazy agents who are not motivated. I'm not exactly if Corelogic offers what I need anyway.

Thanks

Matthew

1Reply
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Eric Adobo
Member since 2018 · 509 posts · 211 votes
8y

Real agents know long distance tire kickers don't actually buy is why you get uninterested agents. 

Call a TK company you will be pampered like there's no tomorrow. 

6Reply
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  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    8y

    @Matthew Swearingen I feel your pain! I am an agent, but I own property out of state in addition to the properties I own in Berywn and Lyons, IL in the Chicago burbs. I have had a very difficult time getting an agent that picks up the phone and that has any relevant data for me. Part of your issue may be that you are looking in secondary and tertiary markets. My experience in Chicago, which is obviously a primary market, would lead me to believe that there are simply more agents who know what they are doing in a large metro area. 

    Have you tried doing a search in the specific zip codes on BP for BP pro agents? You could also go directly to property management companies and ask for their referrals. Honestly, I would start with the property management companies anyway as they will be the ones that will make or break your investment in the long run. 

    5Reply
  • Jeremy Brenneman
    Olathe, KS · Member since 2014 · 4 posts · 4 votes
    8y

    When looking in the Kansas City area I would strongly suggest towns called Raytown, Independence, Blue Springs, North Kansas City (up and coming trendy area) and some areas within the City. You can for sure find houses within your price range that will produce rents from $700-$1300(I know that's a wide range) depending on the house and area.

    The Kansas Side has some appealing areas that will produce similar results. Look for Turner and Edwardsville. 

    3Reply
  • Eric Adobo
    Member since 2018 · 509 posts · 211 votes
    8y

    Real agents know long distance tire kickers don't actually buy is why you get uninterested agents. 

    Call a TK company you will be pampered like there's no tomorrow. 

    6Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Buying out of state to start is the hardest. Once you own in an area it’s not hard to convince people you’re buying more in that area
    4Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y

    Thank you s much for the replies. I hate to ask a dumb question but what is a TK company. Can anyone recommend a property management company in the areas that I mentioned? Other than searching the cities I have mentioned to locate a good property management company; which they will say they are the best, any suggestions would be grateful. 

    As far as this website does it offer tools to search homes to purchase, rent, property info? I'm still familiarizing myself with the site. So far it seems to be a great resource and again thank you for all the responses.

    Matthew

    0Reply
  • Chris T.
    Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    8y

    TK = turn key. Meaning the house is "fixed up", and tenants are already placed there. So basically you just collect the monthly rent, without dealing with the tenant. 

    check out roofstock as well, they seemed to be pretty active marketing to out of state investors. 

    I suggest you search in these forums the cities you want to invest in, and you will find some management companies that are consistently being mentioned. Or reach out to local BP investors in those areas.

    4Reply
  • Courtney Jones
    Rental Property Investor · Dayton, OH · Member since 2016 · 210 posts · 160 votes
    8y

    I Invest in Dayton Ohio and I had a terrible time finding a agent who seemed interested in my business. I called  ten or more. Out of that four returned my calls. Out of that I entertained two of them and they quickly let me know they were not interested in my business. I ended up with one who asked for a copy of my pre approval letter or proof of any funds. After I sent her that she was on point! She sent via email exactly what I wanted to see. I scheduled a trip to go see property over a weekend and walked away with one. She knew I was serious. Not surprising that she won agent of the year there in 2017. Dont give up. Some people wanna make money just like you.

    5Reply
  • Eric Adobo
    Member since 2018 · 509 posts · 211 votes
    8y

    Good job Courtney. You actually went to see a property. WOW. 

    PS. I'm not a fan of TK. 

    0Reply
  • Courtney Jones
    Rental Property Investor · Dayton, OH · Member since 2016 · 210 posts · 160 votes
    8y

    I did go with the intent to get a feel of the city and the area that I  thought would be appealing.  The agent had about 25 properties lined up for me to see.   I left on the 3rd day with 3 houses lined up to offer on if the first choice didnt work out.  I purchased-vacant-turn key ready. My management chose my tenants. It worked out great. The amount of air fare , hotel , rental car, was all a tax write off and well worth it. 

    Life is but a dream.

    5Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y

    Hey Eric

    Why are you not a fan of TK?

    Quick question: Is there a place on the site or forum in which I can post to a particular state or city and get input directly from agents or investors in that area...for example Kansas City, Nashville, etc. 

    Thanks again for all your input everyone.

    0Reply
  • Larry S.
    Northern NJ · Member since 2017 · 69 posts · 45 votes
    8y
    Originally posted by @Matthew Swearingen:

    Hey Eric

    Why are you not a fan of TK?

    Quick question: Is there a place on the site or forum in which I can post to a particular state or city and get input directly from agents or investors in that area...for example Kansas City, Nashville, etc. 

    Thanks again for all your input everyone.

     Yes, you can search local forums here: https://www.biggerpockets.com/forums/86-local-real... and click on the 'show sub-forums' link.  There's a sub-forum for each state. 

    If you want to learn more about a specific city, you can also set up key word alerts, so you will get a notification each time that word or phrase is posted.  For example, I have a key word alert for 'Kansas City' which is how I found your post. 

    2Reply
  • Jeff Filali
    Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    As an out-of-state investor, you are going to be far better off to find a turnkey company or other local investors looking to sell some of their turnkey properties.  I've sold several of mine as I was looking to roll into larger projects or multis.  But other investors will definitely help you more then most realtors until you establish your presence there.

    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    8y

    @Matthew Swearingen If you do decide to go turnkey o, I highly recommend you vet the company and people behind it thoroughly.  IMO that should include a trip to the area and face to face meeting, tour of rehabs and neighborhoods invested in and more.  And don't forget that the most important element for the long term success of your out of state rentals is going to be the property management.  Make sure you choose wisely, whether or not it is part of a turnkey operation.

    4Reply
  • Trevor Muzzy
    Tucson, AZ · Member since 2016 · 21 posts · 6 votes
    8y

    My first property was Turnkey and it was a great way to get a foot in the door, but I probably won't use that model again. Definitely be very wary of Turnkey companies!! Some sketchy ones will try to get you to forgo the property inspection, sell you a halfway rehabbed property, then stick you with terrible tenants. There are good ones out there, so make sure you choose your turnkey company wisely.

    2Reply
  • Marty Bauer
    Rental Property Investor · Charleston, SC · Member since 2015 · 33 posts · 13 votes
    8y
    Hey Matthew, I live in CA and just bought a rental in Cincinnati (in one of the neighborhoods you mentioned too). I’m from there so have had a much different experience as people have been really helpful. Happy to connect more if you’d like. I’ll actually be there next week. Thanks.
    1Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y
    Originally posted by @Marty Bauer:

    Hey Matthew,

    I live in CA and just bought a rental in Cincinnati (in one of the neighborhoods you mentioned too).
    I’m from there so have had a much different experience as people have been really helpful.

    Happy to connect more if you’d like. I’ll actually be there next week.

    Thanks.

    0Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y

    Hi Marty,

    Thanks for the input. Yes Im from Sacramento CA. I would love to connect with you. Im not sure if I can give you my email or phone number. Not sure what the forum rules are on that.

    Thanks

    Matthew

    1Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y
    Originally posted by @John Warren:

    @Matthew Swearingen I feel your pain! I am an agent, but I own property out of state in addition to the properties I own in Berywn and Lyons, IL in the Chicago burbs. I have had a very difficult time getting an agent that picks up the phone and that has any relevant data for me. Part of your issue may be that you are looking in secondary and tertiary markets. My experience in Chicago, which is obviously a primary market, would lead me to believe that there are simply more agents who know what they are doing in a large metro area. 

    Have you tried doing a search in the specific zip codes on BP for BP pro agents? You could also go directly to property management companies and ask for their referrals. Honestly, I would start with the property management companies anyway as they will be the ones that will make or break your investment in the long run. 

    0Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y

    Hi John

    I haven't tried to locate by zip codes because I don't know what zip codes. Im just trying to nail done about 3 states that would be great potential and then narrow down to the zip codes. 

    0Reply
  • Mel Hayes
    Investor · Los Angeles, CA · Member since 2016 · 256 posts · 111 votes
    8y

    @Matthew Swearingen You are at the right place to find your answers.  My first advice is to educate yourself before you start looking at markets.  You may not even know what you're looking at.  I would start with @David Greene book.  I was well on my to getting a TK before reading his book but instead I'm doing a long distance rehab for a property I picked up for basically nothing.  David goes over exactly how to contact agents, what to say to them and how to have them seriously interested in working with you.

    I'm also going to suggest not going with a TK as your first out of state purchase.  Most people here on the forum will disagree with me but the time you will spend vetting Turn Key companies could be spent learning the business to become a better investor.  Also what you NEED to know is Turn Key is a VERY lose term.  It's like saying I play "sports."  There is football, baseball, etc... Then there is Quarterback, running back, a catcher.  When someone approaches you and says they are a "Turn Key" company you NEED to know exactly what their services are.  Most people go turn key because they feel safe.  Just search "Morris invest" in the search bar.  If you already know the business and you still want to go turn key.  I suggest talking to Spartan Invest and Memphis Invest.  They have a good track record of honesty which is most important when it comes to TK.

    cheers.

    @Matthew Swearingen

    3Reply
  • Tyler Jahnke
    Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
    8y

    Hey @Matthew Swearingen - as someone else pointed out, you may not be getting the best response from agents because there are a bunch of "tire kickers" out there that never actually end up pulling the trigger on a property. I'd suggest giving these agents a call, having a conversation, showing them how serious you are by talking about your plan/vision.

    You'll need to learn more about the areas you want to invest in and be able to talk the talk too. It's sometimes hard for an agent to find what you want if you just give them the general criteria of "between $50k-$100k in a C or B neighborhood"

    Look at Crime data on Trulia to see where the good and bad neighborhoods are. Check Rentometer and Craigslist to get an idea of rental rates, understand how to calculate all expenses (especially how to look up property taxes and get insurance quotes), and interview multiple property management companies.

    Hope that helps and best of luck! Shoot me a private message if you have any questions I'd love to help as I myself invest out-of-state.

    -Tyler

    1Reply
  • Adam Mykel Cox
    Real Estate Broker · Birmingham, AL · Member since 2018 · 18 posts · 11 votes
    8y
    Hi Matthew. If you’re interest in the Southeast, Birmingham might be an area to check out. I’ve got investors here getting 17-20% returns on their investment. I’m “one of those agents” on the other side who gets tons of calls from out of state purchaser’s. Yes, I’d say 5% or less that I talk to end up buying. So even if it’s not in Birmingham, stay in contact with that agent either by phone, email or text to show them how serious you are. Don’t be afraid to ask questions either, be sure you trust them and make sure they’re knowledgeable. My out of state investors I currently work with, our first few introductory calls we spoke about 20-30 minutes each, just educating them on our market - areas, traditions with PM, etc. If I can ever be of any assistance or a sounding board, don’t hesitate to reach out.
    1Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y
    Originally posted by @Tyler Jahnke:

    Hey @Matthew Swearingen - as someone else pointed out, you may not be getting the best response from agents because there are a bunch of "tire kickers" out there that never actually end up pulling the trigger on a property. I'd suggest giving these agents a call, having a conversation, showing them how serious you are by talking about your plan/vision.

    You'll need to learn more about the areas you want to invest in and be able to talk the talk too. It's sometimes hard for an agent to find what you want if you just give them the general criteria of "between $50k-$100k in a C or B neighborhood"

    Look at Crime data on Trulia to see where the good and bad neighborhoods are. Check Rentometer and Craigslist to get an idea of rental rates, understand how to calculate all expenses (especially how to look up property taxes and get insurance quotes), and interview multiple property management companies.

    Hope that helps and best of luck! Shoot me a private message if you have any questions I'd love to help as I myself invest out-of-state.

    -Tyler

    0Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y
    Originally posted by @Matthew Swearingen:
    Originally posted by @Tyler Jahnke:

    Hey @Matthew Swearingen - as someone else pointed out, you may not be getting the best response from agents because there are a bunch of "tire kickers" out there that never actually end up pulling the trigger on a property. I'd suggest giving these agents a call, having a conversation, showing them how serious you are by talking about your plan/vision.

    You'll need to learn more about the areas you want to invest in and be able to talk the talk too. It's sometimes hard for an agent to find what you want if you just give them the general criteria of "between $50k-$100k in a C or B neighborhood"

    Look at Crime data on Trulia to see where the good and bad neighborhoods are. Check Rentometer and Craigslist to get an idea of rental rates, understand how to calculate all expenses (especially how to look up property taxes and get insurance quotes), and interview multiple property management companies.

    Hope that helps and best of luck! Shoot me a private message if you have any questions I'd love to help as I myself invest out-of-state.

    -Tyler

    0Reply
  • Matthew Swearingen
    OP
    CA · Member since 2018 · 124 posts · 33 votes
    8y
    Originally posted by @John Warren:

    @Matthew Swearingen I feel your pain! I am an agent, but I own property out of state in addition to the properties I own in Berywn and Lyons, IL in the Chicago burbs. I have had a very difficult time getting an agent that picks up the phone and that has any relevant data for me. Part of your issue may be that you are looking in secondary and tertiary markets. My experience in Chicago, which is obviously a primary market, would lead me to believe that there are simply more agents who know what they are doing in a large metro area. 

    Have you tried doing a search in the specific zip codes on BP for BP pro agents? You could also go directly to property management companies and ask for their referrals. Honestly, I would start with the property management companies anyway as they will be the ones that will make or break your investment in the long run. 

    0Reply
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