New to out of state investment

Member since 2021 · 4 posts · 0 votes

Hi,

I am just getting started and willing to start small with a small property first to rent out, mostly likely out of state as my state is too expensive for that. But I am willing to expand little by little. I am really a newbie in this area, and hoping to be ready as much as possible by learning here about the various possible corporation setup and tips required, while I gather the initial down payment.

Thanks!

0 Reply

33 views

Most Popular Reply

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

Unless you're talking small condos with high hoas (which no one should buy.), I don't think there's a SFR for under $250k you should buy in vegas.

1 Reply

See this reply in the discussion

12 Replies

Jump to latestLatest

Sort by

Marlon FongPro Member
BiggerPockets Support · Bridge City, TX · Member since 2016 · 1k+ posts · 367 votes
4y
Hi @Moun Seo! Welcome to BP! Glad to have you here!
0 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
4y
What areas are you looking in?
0 Reply
Moun Seo
OP
Member since 2021 · 4 posts · 0 votes
4y
@Caleb Brown I am looking for any state that would be profitable enough for a first single family rental. I searched a bit and it seems that the Dallas, TX area or Las Vegas, NV area would be potentially interesting for a small ticket first (below $150K), but I am happy to look for other areas as well as long as it fits the budget and the profitability is interesting, if that makes sense.
0 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
Unless you're talking small condos with high hoas (which no one should buy.), I don't think there's a SFR for under $250k you should buy in vegas.
1 Reply
Moun Seo
OP
Member since 2021 · 4 posts · 0 votes
4y
Ah? Could you elaborate a bit more your thoughts? Is it because: it wouldn't be profitable, or any other reason?
I am definitely still learning. $250K at the beginning seems a bit high for me for the first property, but at $250K, what monthly rental income would one expect in that area?
0 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
Just use Zillow or mls or anything else and look for any property built in the last 30 years over 1400sf preferably 3/2 with a garage and the cheapest ones will be $200,000+.

$150k houses just don’t exist in vegas outside of very old very run down very small properties that you would never want as a first property, much less a first out of state property.

First narrow your search area to areas you’ve research. Start with something like west of rainbow, or north of Cheyenne and west of MLK, north and west of 5th and 215.

Someone else can chime in with the good southern, southeastern or south western areas.

IMHO there is no reasons to invest in central (unless you want a trophy strip condo) or the north east (unless you REALLY know the area, live near by and and speak at least a couple languages.)

Talk to a couple local property managers and ask them for suggestions on areas and price ranges. You’re not going to want to remote manage anything at the low end so they’ll have to find and manage your tenants and Nevada law requires a local contact anyway.
0 Reply
Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
4y
$150,000 in DFW area is very tough now. Prices have gone way way up. Even at $250,000 it is not easy to find great properties unless you go much further out from the city center....maybe 1 to 1 1/2 hours away.
0 Reply
Moun Seo
OP
Member since 2021 · 4 posts · 0 votes
4y
Thanks @Bruce Lynn. I am fine with $250K as a starting point, but what I am curious is really: what rental can we really expect in those areas you mention? I would find hard to believe that at $250K, the monthly rental can really $2,500, but maybe I am wrong?
I am simply targeting "cheaper" properties because I thought that rent anyway doesn't linearly go up with the price so it's probably easier to get a $1500 rental with $150K properties. I could be totally in the wrong as well.
0 Reply
Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
4y
@Moun Seo 1% rule is good, but probably dead in any price range in DFW now unless you are in the very worst areas, which may cost you more in the long run...with more issues of non-payment, theft, repairs, etc.
I just say $250,000 as I look every single day for properties in six DFW area counties...so that is Dallas, Tarrant, Denton, Collin, Cooke, and Grayson. Very rarely do I see anything I would consider worthwhile recommending to my investor clients for $150,000. We would be buying those all day long. Tough even in the outlying cities to find $150,000 anymore unless you consider mobile homes. Can't remember the last one we were able to get under $150,000, but it has been a while. I say $250,000 is the new $150,000 and even those seem to be few and far between. What we generally see is $250,000 probably rents for $1800/month or so. Of course that is very simple answer and there are plenty of exceptions. When you find the exceptions, jump on them.
0 Reply
Kar Sun
Member since 2021 · 402 posts · 277 votes
4y
personally, for small time investors, I do not recommend out of state investments. it is too expensive as you will need a property manager.
0 Reply
Kar Sun
Member since 2021 · 402 posts · 277 votes
4y
Originally posted by @Bill B.:
Unless you're talking small condos with high hoas (which no one should buy.), I don't think there's a SFR for under $250k you should buy in vegas.

I own cash flowing properties within a couple of miles of my residence that have been appreciating like crazy that are in HOA. I really like to be in HOA because I can turn a lot of bad tenants away. We have been grandfathered in, so that makes it even better since that means not many are being rented anymore. My tenants value living in communities of homeowners instead of transients. They also value the curb appeal and well cared for properties. I am also looking to keep these for a very long time.
0 Reply
Brian Walters
Las Vegas, NV · Member since 2019 · 173 posts · 78 votes
4y
Very much agree with everything Bill said. Prices in LV keep going up (we purchased our first house earlier this year other similar houses in our area are currently going for well more) but for a SFH in a good area of Vegas $250K isn't that much, I wish it was.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.