New Real Estate Investor, Looking For a Team

[Brian Batista]

Hi Everyone,

I'm a new investor from the Bay Area and I'm looking to start buying out of state rental properties and building a portfolio. I have never done a BRRRR, a flip, or owned any real estate before, but as an Architect I've been around this industry for a while and I want to begin investing. I would like to be able to invest in my own market, but the Bay Area is too expensive for me at the moment. What I'm looking to do is BRRRR in less expensive markets like Memphis, Kansas City, San Antonio, Cleveland, Houston, or Detroit.

The deal I would want to find is something around $100,000 that I can use a hard money loan to purchase and rehab, rent using a property manager, and refinance remotely from California. I know this will take a significant amount of effort and coordination, but hoping to connect with people on these forums and see what we can do. I'm interested in speaking with any lenders, agents, contractors, property managers, or anybody who simply knows the market well enough to give some good advice. 

My next step is picking a market and going for it, so if anybody has any feedback on whether I should or shouldn't go for one of the markets I've listed above, I'd appreciate it. If you have a better suggestion for a market that would be great, too!

Thanks in advance,

-Brian

[Caleb Brown]

Happy to help build your team here in KC. 

[Monica Bynum]

If you are looking to invest here in the Memphis, Tn then my team and I can assist you. I’m on the Tyler Tapley Team with CRYE-Leike and we assist many investors from all over the world. 

[Rachel Hadass]

Hi Brian,

I'm new as well and in the Bay Area. Also interested in the BRRRR model and looking at either less expensive areas in CA or out of state. Would love to connect and share ideas!

Best,

Rachel 

[Virginia Franzese]

Good morning, Brian! My team and I are located in Kansas City and work in both Kansas and Missouri. We would be happy to help you explore our market- let's schedule a call! 

[Rick Pozos]

If anyone says that they can find you a deal with minimal repairs in SA for about 100k, they are not telling the truth. Well...let me rephrase that, 100k, minimal repairs in a decent neighborhood is non existent.

I have a house right now under contract for 105k, but it is going to take 50k in repairs. Thats plenty of repairs. ARV about 210k to 215k. Most decent neighborhoods are going to be 200k ARV or a little more for about 1200sf+.

[Walter Jones]

Investor and solo agent in Memphis here. Lots of competition around here for good BRRRRs and flips. Much easier to find a solid SFH rental that hits the 1% rule, but with some good searches and diligence they'll pop up on occasion.

[Brian Batista]

Quote from @Rick Pozos:

If anyone says that they can find you a deal with minimal repairs in SA for about 100k, they are not telling the truth. Well...let me rephrase that, 100k, minimal repairs in a decent neighborhood is non existent.

I have a house right now under contract for 105k, but it is going to take 50k in repairs. Thats plenty of repairs. ARV about 210k to 215k. Most decent neighborhoods are going to be 200k ARV or a little more for about 1200sf+.

Hi Rick,

Thanks for your feedback! I’m not afraid of doing bigger rehab jobs as long as the numbers work, I just need to be at a certain purchase price because of how much cash I have, but most hard money lenders I’ve spoken to are willing to finance 100% of rehab, with 20% down on the acquisition cost.

As far as decent neighborhoods go, I wouldn’t mind being in an up and coming location. I would consider something like the deal you mentioned above successful since about 70% of your ARV is about what you put into it!

[Brian Batista]

Quote from @Walter Jones:

Investor and solo agent in Memphis here. Lots of competition around here for good BRRRRs and flips. Much easier to find a solid SFH rental that hits the 1% rule, but with some good searches and diligence they'll pop up on occasion.

 Hi Walter,

Thanks for the feedback! A 1% SFH is nice, but I really want something I can BRRRR so I can keep my relatively limited amount of money moving and working for me instead of having to save up again after each property. I'd love to chat on the phone about your experiences sometime if you have a moment.

Thanks!

[Harrison Chow]

Quote from @Brian Batista:

Hi Everyone,

I'm a new investor from the Bay Area and I'm looking to start buying out of state rental properties and building a portfolio. I have never done a BRRRR, a flip, or owned any real estate before, but as an Architect I've been around this industry for a while and I want to begin investing. I would like to be able to invest in my own market, but the Bay Area is too expensive for me at the moment. What I'm looking to do is BRRRR in less expensive markets like Memphis, Kansas City, San Antonio, Cleveland, Houston, or Detroit.

The deal I would want to find is something around $100,000 that I can use a hard money loan to purchase and rehab, rent using a property manager, and refinance remotely from California. I know this will take a significant amount of effort and coordination, but hoping to connect with people on these forums and see what we can do. I'm interested in speaking with any lenders, agents, contractors, property managers, or anybody who simply knows the market well enough to give some good advice. 

My next step is picking a market and going for it, so if anybody has any feedback on whether I should or shouldn't go for one of the markets I've listed above, I'd appreciate it. If you have a better suggestion for a market that would be great, too!

Thanks in advance,

-Brian

Hi Brian! My team and I specialize in the Ohio market. We'd be glad to assist you in learning about our market. Let's arrange a call!

[Christos Kalogeropoulos]

Hello Brian,

In my opinion, Columbus, OH is BOOMING right now. Home prices here are still really affordable and the metro area is the second-largest in the state. Over the next 20–25 years, the area is expected to grow by more than 50%. Columbus ranks as the 28th-best place for business and careers, in the top 74 for job growth, and the top 55 for education. Job growth is strong, unemployment is low, and the cost of living is 5% below the national average in the U.S. With your budget you can get a pretty good investment property to start your cash flow. The city is full of businesses in every area that bring people from across the nation and the world, in addition to The Ohio State University and jobs associated with the state. In recent tech news, Intel announced that Columbus would be the location of its new factory, which will create over 3,000 new jobs in the area. I hope I helped a bit with providing you info about your next investment. I'm a real estate investment agent here in the area so if you need any other info please feel free to ask.

[Emma Vallery]

Hey Brian! 

I am a Realtor in Columbus Ohio. I think it is a great idea to invest in more affordable markets, Columbus is a place you should look into as well. Affordability is what makes Columbus such a great market for investors, as well as the amount of growth the city experiences and is going to continue to experience in the future. We are getting a few big companies moving to the Columbus area, one of them being Intel, alone, creating 10,000 direct jobs. Columbus is also experiencing some really great developments, such as the new fashion district and the Gravity buildings near Franklinton. Employment growth in Columbus is 3.58% year-over-year and five fortune 500 companies are headquartered here. Columbus is one of the top 10 housing markets best positioned for growth, making it an ideal market for fix and flips and buy and holds! The suburbs are also a great areas to raise a family, with safe and affordable neighborhoods, and great school districts. 

I hope this helped when looking for cities to research to start investing in!

[Ryan Stuckey]

I also recommend Ohio for real estate investment, especially Columbus and Cincinnati. We like to help investors in the region with asset-based investor-friendly financing solutions for both short-term and long-term projects. We'd love to join your team if you go with Ohio.

[Steven Foster Wilson]

Quote from @Brian Batista:

Hi Everyone,

I'm a new investor from the Bay Area and I'm looking to start buying out of state rental properties and building a portfolio. I have never done a BRRRR, a flip, or owned any real estate before, but as an Architect I've been around this industry for a while and I want to begin investing. I would like to be able to invest in my own market, but the Bay Area is too expensive for me at the moment. What I'm looking to do is BRRRR in less expensive markets like Memphis, Kansas City, San Antonio, Cleveland, Houston, or Detroit.

The deal I would want to find is something around $100,000 that I can use a hard money loan to purchase and rehab, rent using a property manager, and refinance remotely from California. I know this will take a significant amount of effort and coordination, but hoping to connect with people on these forums and see what we can do. I'm interested in speaking with any lenders, agents, contractors, property managers, or anybody who simply knows the market well enough to give some good advice. 

My next step is picking a market and going for it, so if anybody has any feedback on whether I should or shouldn't go for one of the markets I've listed above, I'd appreciate it. If you have a better suggestion for a market that would be great, too!

Thanks in advance,

-Brian

 Hi Brian, 

That is great what you want to do. I am currently on my 4th BRRRR. I also help investors from all over find deals. If you have not yet I recommend you read this article on OOS investing. This explains who you need on your bus! You will need to get a local, Realtor, contractor, lender, and property manager. All the pieces to making a successful business. Bigger pockets even had Ohio as one of their top 5 markets to invest in.

https://www.biggerpockets.com/...

[Travis Biziorek]

Brian, I have 12-doors in Detroit and I'm not far from you now. I currently live in Arroyo Grande down here on the central coast but did 12+ years in the SF Bay Area pre-2017.

I have done everything in Detroit from buying turn key, light rehabs, and full gut rehabs. There are pros and cons to each approach and I'm happy to discuss.

I have a close friend I work with that also runs a turn key company in Detroit and Cleveland that I'm happy to connect with when/if it makes sense.

[Maria Checchin]

Would love to connect with you in the East TN market! Shoot me a DM.

[Tal Tamir]

Quote from @Brian Batista:

Hi Everyone,

I'm a new investor from the Bay Area and I'm looking to start buying out of state rental properties and building a portfolio. I have never done a BRRRR, a flip, or owned any real estate before, but as an Architect I've been around this industry for a while and I want to begin investing. I would like to be able to invest in my own market, but the Bay Area is too expensive for me at the moment. What I'm looking to do is BRRRR in less expensive markets like Memphis, Kansas City, San Antonio, Cleveland, Houston, or Detroit.

The deal I would want to find is something around $100,000 that I can use a hard money loan to purchase and rehab, rent using a property manager, and refinance remotely from California. I know this will take a significant amount of effort and coordination, but hoping to connect with people on these forums and see what we can do. I'm interested in speaking with any lenders, agents, contractors, property managers, or anybody who simply knows the market well enough to give some good advice. 

My next step is picking a market and going for it, so if anybody has any feedback on whether I should or shouldn't go for one of the markets I've listed above, I'd appreciate it. If you have a better suggestion for a market that would be great, too!

Thanks in advance,

-Brian

 Exciting times Brian! What I have seen from personal experience is that no matter what you buy, that initial leap into RE investing is going to be intimidating and there will be plenty of pitfalls so the keys in my opinion is to align yourself with the right people in your specified markets (Agents, property managers, etc) and make sure that you stick with it.

What I mean by this is that when something comes up that is unexpected (because it will) you don't get spooked, sell the property for what you bought it for and never invest again. We have seen that happen with OOS investors and its truly a shame! Real Estate still is the thing that creates the most millionaires in our beautiful country.

I am personally a huge fan of the Cleveland Ohio market and being a native here may make me slightly biased but I do think there is incredible potential here to grow a portfolio and build true wealth. We personally invest here as well and have had some really great success and same with our clients.

Let me know if you want to chat more about the CLE market!

[Drew Sygit]

@Brian Batista

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/...
(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)

Doubt you'll find this much info for any other market in the country. So, why would you invest remotely anywhere else?

Please send us any feedback via email, as we do not use the DM feature here.
Also, if you like our response, please don’t be shy about giving us a vote😊

[Dustin Street]

Quote from @Brian Batista:

Hi Everyone,

I'm a new investor from the Bay Area and I'm looking to start buying out of state rental properties and building a portfolio. I have never done a BRRRR, a flip, or owned any real estate before, but as an Architect I've been around this industry for a while and I want to begin investing. I would like to be able to invest in my own market, but the Bay Area is too expensive for me at the moment. What I'm looking to do is BRRRR in less expensive markets like Memphis, Kansas City, San Antonio, Cleveland, Houston, or Detroit.

The deal I would want to find is something around $100,000 that I can use a hard money loan to purchase and rehab, rent using a property manager, and refinance remotely from California. I know this will take a significant amount of effort and coordination, but hoping to connect with people on these forums and see what we can do. I'm interested in speaking with any lenders, agents, contractors, property managers, or anybody who simply knows the market well enough to give some good advice. 

My next step is picking a market and going for it, so if anybody has any feedback on whether I should or shouldn't go for one of the markets I've listed above, I'd appreciate it. If you have a better suggestion for a market that would be great, too!

Thanks in advance,

-Brian

It sounds like you have a solid plan. You're right, it will take more coordination than anything, but it's doable. KC has several options for the 100k range, that gets cashflow and appreciation. Feel free to reach out anytime, I can also help with building your dream team out here!