Finding an out of state market

9 Replies

Good Afternoon Everyone,

My wife and I are looking to start getting into buy and hold investment properties, unfortunately we live in the San Francisco Bay Area and prices are skyrocketing right now so my local area is not in the cards for now. I have been researching some out of state markets but I am having trouble deciding on an area. I have looked into Kansas City, MO. Cleveland, OH. Akron, OH. Huntsville, AL. We are looking for a property, either SF, duple, or triplex, in the price range of $80-150k. In the metros I listed above does anyone have suggestions on neighborhoods to specifically look into? What about areas to avoid? Does anyone have any suggestions on any other metro areas to look into? What are some things experienced out of state investors look for in new markets?

I am approximately 50% complete on David Greene’s out of state investing book so some questions haven’t been answered yet.

Thank you everyone in advance for any information you can provide.

@Lancer J. in my opinion the price range you have is going to be very tough to find any sort of multi family deal in Huntsville unless you act FAST! I’m running into the same competitive secondary market even with wholesalers and the other buyers on their list. It’s crazy!

Originally posted by @Lancer J. :

Good Afternoon Everyone,

My wife and I are looking to start getting into buy and hold investment properties, unfortunately we live in the San Francisco Bay Area and prices are skyrocketing right now so my local area is not in the cards for now. I have been researching some out of state markets but I am having trouble deciding on an area. I have looked into Kansas City, MO. Cleveland, OH. Akron, OH. Huntsville, AL. We are looking for a property, either SF, duple, or triplex, in the price range of $80-150k. In the metros I listed above does anyone have suggestions on neighborhoods to specifically look into? What about areas to avoid? Does anyone have any suggestions on any other metro areas to look into? What are some things experienced out of state investors look for in new markets?

I am approximately 50% complete on David Greene’s out of state investing book so some questions haven’t been answered yet.

Thank you everyone in advance for any information you can provide.

I would check out Columbus, Ohio 

If you follow enough threads on this website, you will soon see that prices are skyrocketing pretty much everywhere in the U.S..  Just because a property appears "cheap" based on your familiarity with the Bay Area market does not mean that it is not greatly appreciated over the past year or more.  For example, a property that sold for $60K 2 years ago that now is selling for $90K has gone up 50% in that time and, accordingly, is likely being viewed by locals in the distant market as massively appreciated.  Of course, where your basic house costs $700K, $90K looks like an incredible "deal."  My advice is to be careful in assessing distant markets, especially where the bulk of sellers are investors themselves/turnkey operators and most purchases are by out-of-state "investors."  What looks like a "deal" may in fact prove to be a tulip.     

@Lancer J. Focus on finding people that will help you, ie your team is more important than the market imo. Sure, find 2-3 markets to invest in. Then, start networking in a couple markets until you find a Rockstar contact that can help you. When you find that person/s, it will open up a whole network of people and you will be off and running. Good luck!

In my experience with out of state investing, the Cleveland OH. market was one of being nickel and dimed to death by the city with permits, violations no matter what repairs you do, fees, increasing insurance premiums, with rising costs of city services and finally high turnover (4 tenants in 4 years) <Again this is my experience> 

Huntsville, Alabama is booming, (west side of Huntsville) but comes at a price with the housing cost. 

Birmingham, Alabama is a nice alternative in Alabama where I currently have 3 properties. I recommend Fultondale, Pinson, and the Grayson Valley areas. Low taxes is one reason I do Alabama, as it is one of, if not the lowest state for property taxes.

Georgia is nice on the taxes as well, and higher rents than Alabama. All around the greater Atlanta metro area is hot.

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