Out of State Rentals

General Landlording & Rental Properties
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Out of State Rentals

KC Conti
Finger Lakes, NY · Member since 2018 · 18 posts · 15 votes

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! 
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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.

[email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Brett D.
    New to Real Estate · Los Angeles, CA · Member since 2020 · 61 posts · 26 votes
    5y

    @Remington Lyman that makes complete sense.

    @JJ P. I get it. I have been out driving, even door knocking a little, and doing a lot of research. So far, nothing around me. But I haven’t ventured out too far. I originally figured if I have to go far, might as well go out of state. But I am looking into a couple or a few hours away now.

    1Reply
  • Robert DiFranco
    Real Estate Agent · Miami, FL · Member since 2017 · 4 posts · 2 votes
    5y

    @KC Conti

    I am looking to purchase my first OOS Turnkey property and in Memphis and it seems that the TK group is a one stop shop for these deals and sell them weekly with very quick turnarounds.

    The shop has been operating for 40 plus years and has a large base of investors who eat up the majority of the product.

    As someone trying to get in. I would like to fly down there and check out the local market but I also feel that given their reputation it is something that I can move forward with given the small price point to entry and the reputation of the shop.

    I am beginning to develop relationships with lenders and the lead sales agent at the shop and it seems that their PM is dominant.

    Any thoughts on this market?

    As someone who sells retail Abs. NNN deals. 9/10 of my deals are sold without my client visiting the property...

    1Reply
  • Timothy Lewis
    Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
    5y

    I know it has been mentioned multiple times on this thread already, but it can not be stressed enough; Read/listen to David Greene's Long Distant Real Estate Investing book before buying out of state. This will help you fully understand what is involved to successfully invest out of state. I used it like a bible/blue print to make the leap into out of state investing.

    1Reply
  • Sean Tagge
    Investor · Lehi, UT · Member since 2015 · 435 posts · 300 votes
    5y

    Hello @KC Conti

    First step is picking the right market I would pick 5-10 to do a macroanalysis on it then narrow it down to 3 to visit then pick the best 1-2 markets that fit your goals. 

    Additionally you mentioned you are worried about COVID. Here is an article that mentions the cities that have faired well and poorly through COVID. 

    https://www.apartmentlist.com/...

    0Reply
  • KC Conti
    OP
    Finger Lakes, NY · Member since 2018 · 18 posts · 15 votes
    5y
    Thanks! Now when you say 5-10, do you mean pick 5-10 different state locations and narrow it down from there? 

    Originally posted by @Sean Tagge:

    Hello @KC Conti

    First step is picking the right market I would pick 5-10 to do a macroanalysis on it then narrow it down to 3 to visit then pick the best 1-2 markets that fit your goals. 

    Additionally you mentioned you are worried about COVID. Here is an article that mentions the cities that have faired well and poorly through COVID. 

    https://www.apartmentlist.com/...

    0Reply
  • Sean Tagge
    Investor · Lehi, UT · Member since 2015 · 435 posts · 300 votes
    5y

    Yes pick 5-10 different cities analyze them. Whats the average rent? home price? appreciation? population growth? avg income? average deal look like? etc 

    BP Insights would be very helpful for this and would help you do it very easily. 

    0Reply
  • Gloria N GearBusiness Member
    Realtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
    5y

    Great thread!  Lots of great ideas for you.  I am in Indianapolis and would be glad to discuss this area with you to compare to other markets.  

    I also like the conversation of the Core 4.  My opinion is that the property manager is the most important person on your team.  They are the ones that are going to vet your potential tenants to get long term tenants (you lose your money on the turns) and keep up with small maintenance issues so that they do not turn into major money-draining issues.

    As a realtor, if I know my clients are working with others, I still work with them and send them properties, but they do not get my best off market deals.  Those are reserved for the investors loyal to me.  I realize that I am only 1 person though and can't find every deal, and encourage my clients if they find wholesale deals to bring them to me and I will help them work them up. 

    Hope that helps - let me know if you would like to connect.

    0Reply
  • Jeremy Luster
    Investor · Atlanta, GA · Member since 2020 · 18 posts · 6 votes
    5y

    @Jenni Villane Hello. I see you have experience in out of state rentals and was wondering if you would answer a couple questions. My wife and I are about to purchase our 2nd out of state rental in IN and we're wondering if we should hire a local attorney or an attorney in Indiana to review the contract? It will be a quick claim deed. And do you guys have your properties in LLC's? Thanks so much for your time.

    Jeremy

    0Reply
  • Calvin OzanickBusiness Member
    Property Manager · Janesville, WI · Member since 2017 · 708 posts · 297 votes
    5y

    I would highly recommend the Rock County, Wisconsin market. This market has been growing at such a fast rate and the local economy is booming. I work primarily in the Janesville and Beloit markets and investors we work with have seen phenomenal returns. The relatively low cost to enter the market, coupled with low vacancy and high rents has produced great returns for many investors both in and out of state. Businesses like ABC Supply CO., Amazon, Dollar General, Shine Medical and Mercy Health have kept unemployment low and have brought many skilled white collar work to the area. If you would like to chat about the market or the potential, or just chat to see how your goals fit into this area, I would love to take out some time. 

    Wisconsin Property Managers4.7414 Reviews
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    1Reply
  • Katí Evans-Bailey
    Realtor · Mobile, AL · Member since 2019 · 13 posts · 4 votes
    5y

    I would consider Mobile, AL. Property prices are very low, especially compared to New York. In addition to low property prices, the rental market is very strong here. Great market for getting rental properties.

    0Reply
  • Jennifer Jo McCallonBusiness Member
    Member since 2020 · 62 posts · 59 votes
    4y

    I'm in CA, own here and Pittsburgh PA, great cap rates and I enjoy visiting (also it is my hometown)

    [email protected]510-545-6390
    0Reply
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