Out of State Rentals

Jeremy Zahn

Member since 2020 · 2 posts · 2 votes

5y

@KC Conti I would recommend checking out Indiana, Ohio, and Kentucky. All are seeing great appreciation, steady population growth, have a much lower cost of living, and considered landlord friendly. All things considered, dial into Indianapolis (IN), Louisville (KY), and Columbus (OH). Best of luck!

Raul Velazquez Jr

Columbus, OH · Member since 2018 · 91 posts · 54 votes

5y

@KC Conti @Chris Wharton is the go to man if you looking for a lender.

[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals

Remington LymanBusiness Member

Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes

5y

Originally posted by @KC Conti:

Good Morning All,

Thank you for taking the time to read my post. I have recently paid off my house and become debt free. I am currently hustling to save as much money as I can. I would like to get a few rentals, but given Covid and the evictions restrictions in NY. I am thinking buying local is not a good idea. I have heard nothing but horror stories from other land lords who are struggling because tenants aren't making their rent (even though they are working or collecting unemployment).

I am curious about your experiences buying out of state? Does anyone have good luck with this? I have heard there are a few states that are much more landlord friendly and I would rather spend my money there.

I have found roof stock, but again I haven't seen a lot of upstanding reviews about the website. I really want to find a way to supplement my income but I don't think New York is the right state to do it in. I would appreciate any thoughts or advice.

Thanks again!

It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio.

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11 Reply

Jenni Villane

Member since 2019 · 13 posts · 16 votes

5y

@Remington Lyman My husband and I have 9 rentals out of state and have focused on North Carolina and Florida. Previous posts are correct about having a solid team in place. Finding the right people to help you is the almost more important than the property itself. Good luck to you.

6 Reply

Dell J.

Member since 2010 · 210 posts · 158 votes

5y

Are you upstate NY? Many people invest in upstate NY and are successful with it. You can look into other states but dont just throw away your home town advantage

Rohan D.

Member since 2019 · 41 posts · 41 votes

5y

Definitely check out the roofstock website since I found it useful along my journey. I am listing some pros and cons I had mentioned in another forum about using roofstock:

Pros:
1. great analysis tools to run the numbers on a property. You get good practice analyzing properties and become more familiar with the system.

2. Many properties have disclosures and inspections already done which helps you make informed decisions

3. They sell properties which are currently occupied. so that is some sort of a safety net for many.

Cons:

1. In hot markets, delay in response can cost you. MLS to Roofstock can take anywhere from 0.5 to 1 day. Add another day for you to sign some edocs and put the offer. By then the house is gone.

2. The financial calculations they use for "Property Tax" is as if it is owner occupied (not sure if they have updated this bug). But most of us are investors, and investment properties have higher property tax percentages. This can give you misleading financial information and is something you have to account for manually in your calculations

what folks say about building a good team is absolutely important, but this process is rather organic for your first investment.

Readup about the investment strategies and make sure you are comfortable with them. (Eg: cash flow vs appreciation, buy and hold vs flips, sfh vs multifamily, handson vs passive etc) once you have identified your niche, dive deep.

Account Closed

Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes

5y

I used to live in Syracuse but would not invest in upstate NY for the reasons you described. I live in Maryland now and invest out of state in Ohio which I would recommend.

Also paying off the house is not something I would celebrate, that means your funds are sitting as “Dead equity” and now you need to do a cash out refinance to get the equity back out and invested in something that will bring you 20% returns instead of no returns sitting in dead equity.

P.S. roofstock is garbage, you need to build a team as @Remington Lyman described

Amedeo M.

Rental Property Investor · Member since 2019 · 77 posts · 36 votes

5y

@Chris Wharton

Hi - Foreign nationals too?

Jason JamesPro Member

Rental Property Investor · Hillsboro, OR · Member since 2018 · 117 posts · 64 votes

5y

@KC Conti I used Roofstock to purchase my first property. It has many pros and cons with the most obvious one being simplicity . The advice I would give you is to run your own analysis based on your criteria and goals. Roofstock provides in depth analysis with documents for each property, but do your due diligence. Some projections are built off market rent, and not actual rent which can greatly impact the ROI on the property. They will send you "vetted" / " suggested" lenders and Property Managers but you don't have to use them. You have an advantage because your on Bigger Pockets and can network with people to find top quality people to add to your team in the State you decide to invest in. I learned the hard way by using one of the 3 Property Managers they suggested without properly interviewing them. It was a great lesson learned, and is what actually led me to Bigger pockets. Good luck beginning your journey!!

David NutakorPro Member

Rental Property Investor · Palmdale, CA · Member since 2016 · 122 posts · 88 votes

5y

@KC Conti, a lot of good suggestions have been provided above, but there is nothing more important than running your own numbers and making sure that the numbers make sense before purchasing a property. It’s difficult to find an honest team of people to work with remotely because everybody is in this business to make money. Please note that several things may go wrong in a real estate transaction, so it’s important to work with a team that is willing to fix issues as they arise. I have been successful with @Eric Fernwood (if you are interested in Las Vegas market) and @nathan brooks (if you are interested in Kansas City market). I wish you good luck in your real estate business.

Steven MayBusiness Member

Real Estate Agent · Kansas City, MO · Member since 2018 · 262 posts · 250 votes

5y

@KC Conti

Kansas City, MO is a great rental market.

Arta Montero

Member since 2019 · 182 posts · 45 votes

5y

@KC Conti I purchased a fourplex in McAllen, Texas in July. It’s going better than the few rentals I have in Portland where I live.

We have a property manager and so far it’s not bad.

Arta Montero

Member since 2019 · 182 posts · 45 votes

5y

@Rohan Deshpande wondering what is roofstop

Joe Patton

Member since 2020 · 9 posts · 3 votes

5y

Hi KC,

There are some advantages and disadvantages to out of state rentals. Advantages can include better market opportunities, tax write-offs for travel to your properties, potentially more affordable deals than in your home market to name a few. Disadvantages can be needing a property management firm to take care of your investments which will take away from your bottom line, potentially not understanding out of state market trends as well as you know your home market. The landlord vs renter friendly areas vary from state to state and even from city to city so you may have some more freedom to choose a market where you have some more control over your asset.

[email protected]614-638-9531

Chris WhartonBusiness Member

Lender · Columbus, OH · Member since 2020 · 85 posts · 73 votes

5y

@Amedeo M. Unfortunately I don't have a product to offer unless you have a valid SSN and file a US tax return.

Ursula Leake

Member since 2020 · 36 posts · 18 votes

5y

@KC Conti I can vouch for @Chris Wharton and @Remington Lyman they’ve been Great in helping me secure my 1st out of state property in Columbus!! 😁

5 Reply

Ismet Kola

Specialist · Staten Island, NY · Member since 2020 · 2 posts · 3 votes

5y

@Chris Wharton

Do you recommend singles or multi families in that market? First time OOS investor from New york

Alex Olson

Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes

5y

Originally posted by @KC Conti:

Good Morning All,

Thank you for taking the time to read my post. I have recently paid off my house and become debt free. I am currently hustling to save as much money as I can. I would like to get a few rentals, but given Covid and the evictions restrictions in NY. I am thinking buying local is not a good idea. I have heard nothing but horror stories from other land lords who are struggling because tenants aren't making their rent (even though they are working or collecting unemployment).

I am curious about your experiences buying out of state? Does anyone have good luck with this? I have heard there are a few states that are much more landlord friendly and I would rather spend my money there.

I have found roof stock, but again I haven't seen a lot of upstanding reviews about the website. I really want to find a way to supplement my income but I don't think New York is the right state to do it in. I would appreciate any thoughts or advice.

Thanks again!

Read David Greene's book on out of state investing. It will give you a great take on how to get started in out of state. It starts with your team - boots on the ground. Lender, insurance, agent and Pm. I, of course, am partial to Kansas City. Cash flow, appreciation, great rental rules...and almost as important..growing city and growing jobs. Hope that helps!

[email protected]614-638-9531

Chris WhartonBusiness Member

Lender · Columbus, OH · Member since 2020 · 85 posts · 73 votes

5y

@Ismet Kola there can be value found in both, but I'd likely lean towards more doors under one roof.

Rick BassettBusiness Member

Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes

5y

Hi KC, I know that many people have been successfully investing out of state but it's not for us.

We manage about 50 properties, many of which we own, and some are managed or rented for others. They are all within 15 miles (30 mins) and it keeps us pretty busy. We have good systems, a reliable vendor/contractor base, and know the market (and building depts) very well. This deep knowledge of our area, and being here to network & develop relationships, has given us the opportunity to buy numerous off-market houses at excellent prices.

Up until about 10 years ago, I was trying to do this absentee from about 45 miles away but the business wasn't getting much traction. It wasn't until I moved here, where our investments were, that things really took off (a steady 10-year burn).

Rick

475-900-3100

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Andrew SyriosPro Member

Moderator

Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes

5y

Buying out of state is something you need to be very careful about. You can do it right, sure. But you can also get burned badly doing it. I wrote an article you might find helpful on it: https://www.biggerpockets.com/... And you should also check out @David Greene's book which you can get here: https://www.amazon.com/Long-Di...

Amedeo M.

Rental Property Investor · Member since 2019 · 77 posts · 36 votes

5y

@Chris Wharton

Thank you and have a nice day!

Carol Birnberg

Knoxville, TN · Member since 2016 · 78 posts · 3 votes

5y

@Jenni Villane is Edgewater FL for rental investment?