My first Out-of-State Buy & Hold!

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My first Out-of-State Buy & Hold!

Steven Rubino
Stoneham, MA · Member since 2017 · 56 posts · 186 votes

Happy New Year everyone!

So my wife and I finally took the plunge and pulled the trigger on our first out of state buy and hold! It's been a crazy experience, and honestly, it would not have been possible without this great community - so I wanted to make this post and hopefully inspire/help someone else to do the same!

We live in Boston and after looking for a multi-family for a little while we decided this market was just too pricey for us. It never even crossed my mind owning property out of state, then I came across this book (which I HIGHLY recommend if you're interested in this topic) The Turnkey Revolution by Christopher Clothier. Wow - what a mind-shift! From there I was hooked.

We settled on Tampa as our target market (based on many different factors), connected with some great people here on BP and started building our team. Fast forward a few months and closed on our first duplex! Here are the numbers:

Purchase Price: $185,000

Down Payment: $54,000

Reno: $25,000

Total Monthly Rent: $2,200

Total Monthly Cashflow: $600

I am planning to refinance soon given the low rates and the value-add due to the reno and hopefully recoup some cash. From there it will be on to the next one!

Let me know what you guys think of the deal! And if out of state investing is something you think isn't possible, IT IS! Trust me! I never in a million years thought I would buy a house sight unseen, and here I am...

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Neil Schoepp
Real Estate Investor · Milford, PA · Member since 2014 · 395 posts · 299 votes
5y

Amazing what happens when you leave your comfort zone and start to crush limited beliefs. Congrats. It's off to the races now. 

"You did it once , you can do it again"  ~ my fitness coach every time he kicks my a**  ha ha

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  • Neil Schoepp
    Real Estate Investor · Milford, PA · Member since 2014 · 395 posts · 299 votes
    5y

    Amazing what happens when you leave your comfort zone and start to crush limited beliefs. Congrats. It's off to the races now. 

    "You did it once , you can do it again"  ~ my fitness coach every time he kicks my a**  ha ha

    1Reply
  • Julius Chinn
    Member since 2020 · 104 posts · 54 votes
    5y

    Thats a lot of cash flow.  Care to break down the numbers.

    0Reply
  • Brian Garrett
    Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    5y

    @Steven Rubino Congrats I notice your down payment is fairly high given the purchase price. Did your lender require you to put more down?

    @Julius Chinn I believe the cash flow is higher because of the larger down payment.

    1Reply
  • Tala Brunson
    Rental Property Investor · Colorado Spgs, CO · Member since 2020 · 4 posts · 1 vote
    5y

    @Steven Rubino

    How was the process for renovation out of state? Did you go during the process? Mind sharing that experience of the deal.

    Thanks

    1Reply
  • Robert Blumberg
    Member since 2020 · 1 post · 0 votes
    5y

    @Steven Rubino Congrats!  What Tampa BP members did you connect with that really helped you achieve your goals?

    0Reply
  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Brian Garrett:

    @Steven Rubino Congrats I notice your down payment is fairly high given the purchase price. Did your lender require you to put more down?

    @Julius Chinn I believe the cash flow is higher because of the larger down payment.

    My thoughts exactly you beat me to it. $79,000 invested plus a loan for $600 a month seems like a low return. If he can pull some of that money back out at the refi that would sure help getting a better return. 

    0Reply
  • Steven Rubino
    OP
    Stoneham, MA · Member since 2017 · 56 posts · 186 votes
    5y
    Originally posted by @Julius Chinn:

    Thats a lot of cash flow.  Care to break down the numbers.

     Sure! Here they are monthly:

    Rent $2,235

    Mortgage $655

    Taxes $300

    Insurance $116

    Utilities $50

    Property Management (8%) $179

    Cap Ex (5%) $112

    Vacancy (5%) $112

    Repairs (5%) $112

    Cash Flow = $599

    0Reply
  • Steven Rubino
    OP
    Stoneham, MA · Member since 2017 · 56 posts · 186 votes
    5y
    Originally posted by @Brian Garrett:

    @Steven Rubino Congrats I notice your down payment is fairly high given the purchase price. Did your lender require you to put more down?

    @Julius Chinn I believe the cash flow is higher because of the larger down payment.

     Yes, you guessed right. The appraisal came in a little low so I had to make up the difference. I'm still really happy with it though and plan to refi soon!

    0Reply
  • Steven Rubino
    OP
    Stoneham, MA · Member since 2017 · 56 posts · 186 votes
    5y
    Originally posted by @Tala Brunson:

    @Steven Rubino

    How was the process for renovation out of state? Did you go during the process? Mind sharing that experience of the deal.

    Thanks

     Hi Tala,

    I did not visit the property during the process. It went slower than I had hoped, due to a lot of different factors but it was still manageable from afar. We set up weekly calls / FaceTimes to check in and review progress with the property manager. The more behind schedule it became the weekly calls soon turned into every other day / daily calls. I am hoping the next one goes a little smoother, but still glad we were able to get this one

    0Reply
  • Antonio M.
    New to Real Estate · Los Angeles, CA · Member since 2020 · 5 posts · 2 votes
    5y

    @Steven Rubino

    Congrats way to go! I too have been looking more into OOS. How did you go about finding your PM and contractors to do the rehab? Anything you would have done different in that regard?

    0Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    5y

    @Steven Rubino congrats on buying your first property OOS, #1 is the most difficult one to buy imo. Way to take action! What lessons did you learn in the process?

    0Reply
  • Alex Mina
    Investor · San Diego, CA · Member since 2019 · 15 posts · 3 votes
    5y

    @Steven Rubino

    Congrats on your first OOS! Hopefully I can join you on the next few months. I’m ready to pull the trigger.

    0Reply
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