New to BP, interested in out of state investing.
I’m new to real estate, here to create relationships and connections. My criteria is out of state investing. Challenge my knowledge, make me think. Lol I’m Open to conversations.
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I recommend you consider Dallas, TX!
The cash-on-cash return and appreciation are steady.
You should select a market that will meet your investment goals.
While there are numerous benefits to long distance real estate investing, there are some potential drawbacks as well. Here are some of the most common mistakes that long distance real estate investors make:
1. Choosing a market for the wrong reasons
Instead of selecting a market for objective reasons like a strong economy and job market, investors select a city for subjective reasons such as the area being a popular spot for family vacations.
2. Accepting mediocre returns
Sometimes investors try to rationalize paying more for a property because it’s turnkey and already has tenants. Money is made in real estate investing by buying at the right price in order to maximize returns. If the returns don’t measure up, simply move on to another rental property where the numbers make sense.
3. Depending on family members
Choosing a long distance market to invest in solely because a family member lives there is another common mistake.
Long distance investors hope that relatives will become tenants to keep vacancy low or handle any property management issues that come up to reduce operating expenses. By factoring in a “family discount,” owners create unrealistic financial projections for their long distance real estate investment.
Good Luck!
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Hey @Skyler Daniels! Welcome to the amazing world of REI! I'm assuming that since you've decided on out of state investing you have already worked out your goals. Thats always step #1! You can find the book on long distance investing here in the BP bookstore written by @David Greene.
My advice would be to find yourself a reliable team in the area you select. You also want to have a fairly clear idea as to what kind of property you're looking for (the more specific the better). I get calls all the time from "investors" looking for something cheap with value add potential. Yeah, so is everyone else. However, if someone calls and says I want a SFH with minimal repairs within 0.5 miles of the university and at least 3 bedrooms under $175k, I'm more than happy to help!
Good luck and have fun with it!
Quote from @Skyler Daniels:
I’m new to real estate, here to create relationships and connections. My criteria is out of state investing. Challenge my knowledge, make me think. Lol I’m Open to conversations.
Hi Skyler, congrats on getting started. I recommend south-central Wisconsin. Amazing cash on cash return - an abundance of good deals. I live, invest, manage, rehab, and broker here. Feel free to give me a call if you want to discuss. Good luck
Quote from @Billy Daniel:
Hey @Skyler Daniels! Welcome to the amazing world of REI! I'm assuming that since you've decided on out of state investing you have already worked out your goals. Thats always step #1! You can find the book on long distance investing here in the BP bookstore written by @David Greene.
My advice would be to find yourself a reliable team in the area you select. You also want to have a fairly clear idea as to what kind of property you're looking for (the more specific the better). I get calls all the time from "investors" looking for something cheap with value add potential. Yeah, so is everyone else. However, if someone calls and says I want a SFH with minimal repairs within 0.5 miles of the university and at least 3 bedrooms under $175k, I'm more than happy to help!
Good luck and have fun with it!
Hi Billy, Thanks for the encouragement to go more detailed into my interests. That’s actually what I sat down yesterday to do. Wrote out my criteria.
I have the city, type of unit, max I’m willing to spend, down payment, property condition, cash flow, and appreciation potential. All of these are listed out, my next goal is to research neighborhoods within the city to get more familiar with the area.
1. Do you see any recommendations for anything I may have missed in my criteria?
2. Any tips for becoming more familiar with a city and picking out a neighborhood that aligns with my goals?
Quote from @Scott Sklare:
Quote from @Skyler Daniels:
I’m new to real estate, here to create relationships and connections. My criteria is out of state investing. Challenge my knowledge, make me think. Lol I’m Open to conversations.
Hi Skyler, congrats on getting started. I recommend south-central Wisconsin. Amazing cash on cash return - an abundance of good deals. I live, invest, manage, rehab, and broker here. Feel free to give me a call if you want to discuss. Good luck
Hi, Scott, thanks for the recommendation, I have read good things about Wisconsin.
Although I’m still weighing my options to make sure I get a grasp on things to make the right choices. I’ll make a point to contact you if I choose to go in that direction.
Quote from @Wale Lawal:
I recommend you consider Dallas, TX!
The cash-on-cash return and appreciation are steady.
You should select a market that will meet your investment goals.While there are numerous benefits to long distance real estate investing, there are some potential drawbacks as well. Here are some of the most common mistakes that long distance real estate investors make:
1. Choosing a market for the wrong reasons
Instead of selecting a market for objective reasons like a strong economy and job market, investors select a city for subjective reasons such as the area being a popular spot for family vacations.
2. Accepting mediocre returns
Sometimes investors try to rationalize paying more for a property because it’s turnkey and already has tenants. Money is made in real estate investing by buying at the right price in order to maximize returns. If the returns don’t measure up, simply move on to another rental property where the numbers make sense.
3. Depending on family members
Choosing a long distance market to invest in solely because a family member lives there is another common mistake.
Long distance investors hope that relatives will become tenants to keep vacancy low or handle any property management issues that come up to reduce operating expenses. By factoring in a “family discount,” owners create unrealistic financial projections for their long distance real estate investment.
Good Luck!
Hi Wale,
Thank you for the tips, I will check into the area.
Sounds good. I just helped a fellow BP member get an accepted offer for a 2 unit in Janesville. We are projected 20% cash on cash returns starting in year 1. I'm here to help if/when you want to chat.
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Quote from @Skyler Daniels:
I’m new to real estate, here to create relationships and connections. My criteria is out of state investing. Challenge my knowledge, make me think. Lol I’m Open to conversations.
Welcome aboard playa playa.
Quote from @Skyler Daniels:
Quote from @Billy Daniel:
Hey @Skyler Daniels! Welcome to the amazing world of REI! I'm assuming that since you've decided on out of state investing you have already worked out your goals. Thats always step #1! You can find the book on long distance investing here in the BP bookstore written by @David Greene.
My advice would be to find yourself a reliable team in the area you select. You also want to have a fairly clear idea as to what kind of property you're looking for (the more specific the better). I get calls all the time from "investors" looking for something cheap with value add potential. Yeah, so is everyone else. However, if someone calls and says I want a SFH with minimal repairs within 0.5 miles of the university and at least 3 bedrooms under $175k, I'm more than happy to help!
Good luck and have fun with it!
Hi Billy, Thanks for the encouragement to go more detailed into my interests. That’s actually what I sat down yesterday to do. Wrote out my criteria.
I have the city, type of unit, max I’m willing to spend, down payment, property condition, cash flow, and appreciation potential. All of these are listed out, my next goal is to research neighborhoods within the city to get more familiar with the area.
1. Do you see any recommendations for anything I may have missed in my criteria?
2. Any tips for becoming more familiar with a city and picking out a neighborhood that aligns with my goals?
Thats perfect. Also include what type of area you want to be in such as near a city center or major employer. I like my clients to say something to the effect of "I prefer the NW side fo town, but I'll look at anything that meets all my other criteria".
For picking a city, you could find far more experienced people than me to help..... I honestly use Zillow for sold listings, Google to virtually drive around the neighborhood, and a local contact to verify my picks. Keep in mind that realtors can't say things like "this is a good neighborhood" or "there is high crime in that area". Thats called steering and is seriously frowned upon. Some investors don't understand that and get mad when a realtor won't just tell them where the best schools or nicest houses are.
Quote from @Billy Daniel:Thanks for the note. I will look for areas where that will tie into my criteria and how that will help me choose where to invest.
Quote from @Skyler Daniels:
Quote from @Billy Daniel:
Hey @Skyler Daniels! Welcome to the amazing world of REI! I'm assuming that since you've decided on out of state investing you have already worked out your goals. Thats always step #1! You can find the book on long distance investing here in the BP bookstore written by @David Greene.
My advice would be to find yourself a reliable team in the area you select. You also want to have a fairly clear idea as to what kind of property you're looking for (the more specific the better). I get calls all the time from "investors" looking for something cheap with value add potential. Yeah, so is everyone else. However, if someone calls and says I want a SFH with minimal repairs within 0.5 miles of the university and at least 3 bedrooms under $175k, I'm more than happy to help!
Good luck and have fun with it!
Hi Billy, Thanks for the encouragement to go more detailed into my interests. That’s actually what I sat down yesterday to do. Wrote out my criteria.
I have the city, type of unit, max I’m willing to spend, down payment, property condition, cash flow, and appreciation potential. All of these are listed out, my next goal is to research neighborhoods within the city to get more familiar with the area.
1. Do you see any recommendations for anything I may have missed in my criteria?
2. Any tips for becoming more familiar with a city and picking out a neighborhood that aligns with my goals?
Thats perfect. Also include what type of area you want to be in such as near a city center or major employer. I like my clients to say something to the effect of "I prefer the NW side fo town, but I'll look at anything that meets all my other criteria".
For picking a city, you could find far more experienced people than me to help..... I honestly use Zillow for sold listings, Google to virtually drive around the neighborhood, and a local contact to verify my picks. Keep in mind that realtors can't say things like "this is a good neighborhood" or "there is high crime in that area". Thats called steering and is seriously frowned upon. Some investors don't understand that and get mad when a realtor won't just tell them where the best schools or nicest houses are.
Definitely will be using google to check out the neighborhoods I look into. Thanks for that tip. I was unaware realtors couldn’t do that, so I’m glad you made mention of that. That’s a nice thing to keep in mind.
Quote from @James Wise:
Quote from @Skyler Daniels:
I’m new to real estate, here to create relationships and connections. My criteria is out of state investing. Challenge my knowledge, make me think. Lol I’m Open to conversations.
Welcome aboard playa playa.
Thanks, I love the BP community!
Following this posts as I too am new and looking into out of state properties
The key is finding and building a great local team. Tons of free resources on here as well as local experts.
Hi Skyler! This is Walter!! lol
I would love to connect to share my experience investing in Cleveland. Let's connect and we can discuss.