Out of state investor

Member since 2023 · 70 posts · 42 votes

Hello fellow Investors,

I am looking to make some connections that will help me identify some good markets to invest in for multi family homes. It seems to me that there is more opportunity in the Midwest and the South. I welcome your insights.

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Joseph Crunkilton

Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes

@Tony Valle

When I got started out of state investing I went the turnkey route. @Zach Lemaster and his team helped me pick up my first few properties and I had a good experience. Their team is knowledgable and could help you as well.

It taught me a lot about the process as a whole and expanded my network.

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Tony Valle
OP
Member since 2023 · 70 posts · 42 votes
3y
Quote from @Bob S.:

Quote from @Tony Valle:

Hello fellow Investors,

I am looking to make some connections that will help me identify some good markets to invest in for multi family homes. It seems to me that there is more opportunity in the Midwest and the South. I welcome your insights.
Cleveland seems to get lots of love from many different sources these days! I would be remiss if I did not explore it further.
Cleveland of course,

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Tony Valle
OP
Member since 2023 · 70 posts · 42 votes
3y
Quote from @Brandon Rabe:

@Tony Valle what are you looking for in a market? What are you looking to get out of an investment? Once you create that criteria, that should help in narrowing down the list of markets to choose from.

These are all questions that I am engaged in the process of solidifying as I learn and engage with mentors.
1 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Tony Valle:

Quote from @Bob S.:

Quote from @Tony Valle:

Hello fellow Investors,

I am looking to make some connections that will help me identify some good markets to invest in for multi family homes. It seems to me that there is more opportunity in the Midwest and the South. I welcome your insights.
Cleveland seems to get lots of love from many different sources these days! I would be remiss if I did not explore it further.
Cleveland of course,

Best overall rental market in America last 10 years or so. Forbes had it number 1 for 17 -18 but they were not paying attention. We used to buy all in 30k or less with 1k in rent, do the math :) Pricing has doubled, tripled or more since. Still going strong and in the top 5 2021, 10% net caps or better based on cash buys are to be had. There is a reason investor from around the world buy there,
All the best
0 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Tony Valle:

Hello fellow Investors,

I am looking to make some connections that will help me identify some good markets to invest in for multi family homes. It seems to me that there is more opportunity in the Midwest and the South. I welcome your insights.

Hey Tony, this will depend on what you're after.
Looking for cashflow? Look into Cleveland, its got good cashflow potential.

Looking for appreciation come to Columbus, there are still 1% deals, but the more attractive part is the population growth and other economic drivers!
There are other smaller markets like Dayton, Akron, and and Newark, which we are starting to see these areas boom due to huge investors and corporations like Intel choosing to set up shop in these kind of areas.
3 Reply
Justin Rademacher
Real Estate Agent · Member since 2022 · 61 posts · 31 votes
3y
from a ltr perspective, the midwest is a really hot market for sure. Minnesota is a great LTR and MTR market depending on where you are. SW Florida Cape Coral area is definitely an area I would look at too.
0 Reply
Tony Valle
OP
Member since 2023 · 70 posts · 42 votes
3y
Quote from @Steven Foster Wilson:

Quote from @Tony Valle:

Hello fellow Investors,

I am looking to make some connections that will help me identify some good markets to invest in for multi family homes. It seems to me that there is more opportunity in the Midwest and the South. I welcome your insights.

Hey Tony, this will depend on what you're after.
Looking for cashflow? Look into Cleveland, its got good cashflow potential.

Looking for appreciation come to Columbus, there are still 1% deals, but the more attractive part is the population growth and other economic drivers!
There are other smaller markets like Dayton, Akron, and and Newark, which we are starting to see these areas boom due to huge investors and corporations like Intel choosing to set up shop in these kind of areas.
This is terrific insight and I am starting to see a consistent pattern here with respect to the opportunity that exists in specific cities in Ohio. It is very exciting to see what some cities are getting right in terms of making their cities attractive for investment: Business and real estate! Many other leaders in certain cities and states, seem to do everything possible to drive the most productive residents (and their capital) away. I see it daily.
0 Reply
Tony Valle
OP
Member since 2023 · 70 posts · 42 votes
3y
Quote from @Jared Hottle:

I would agree with you I think the Midwest will be much better for cash flow and stable over these high-interest turbulent times. Maybe not a big enough market for you but Northeast Iowa has been good to me!

I appreciate the feedback and congrats on your success in Iowa! I have enjoyed learning about many different areas of the country recently!
0 Reply
Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
@Tony Valle- thanks 1) knowing the price ranges you are considering will be helpful to get better replies 2) if you will need to use financing / loans - you should work with a lender that can lend in all states you have interest in and get formally pre approved 3) good luck
0 Reply
Tony Valle
OP
Member since 2023 · 70 posts · 42 votes
3y
Quote from @Jacob Krafka:

Take a look at the colorado market... It is def headed for an uptake, as I have seen an influx of investors getting off the sidelines to start investing again. Would love to chat and see what you criteria is to see if we could make something work out here for you!

Thanks for this insight!
0 Reply
Brandon Rabe
Rental Property Investor · Honolulu, HI · Member since 2019 · 179 posts · 91 votes
3y
Quote from @Tony Valle:

Quote from @Brandon Rabe:

@Tony Valle what are you looking for in a market? What are you looking to get out of an investment? Once you create that criteria, that should help in narrowing down the list of markets to choose from.

These are all questions that I am engaged in the process of solidifying as I learn and engage with mentors.

and I'm a mentor too! lol. These cities are all great suggestions, but it's important to know why YOU are investing in that particular city. Not because someone else said to. The market I invest in is considered a great/hot market to invest in as well, and people still get burned or don't make out.
0 Reply
Ryan ThomsonBusiness Member
Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
3y
@Tony Valle can you shed a little more light on what's most important to you. Is it only cashflow? Appreciation?
The Assumable Guy544 Reviews
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Tammy Thorn
Realtor · Bentonville, AR · Member since 2023 · 4 posts · 2 votes
3y
Hi there! I am an Agent in the Fayetteville Arkansas area. NWA has been noted as one of the fastest growing areas in the country. The continued influx of suppliers coming towards Walmart home office as well as several other retailers Home offices continues to grow the area quickly. I’ve had the pleasure of calling NWA home my entire life and I have always appreciated the area for all the things that it offers. Wishing you the best of luck with all your future endeavors!
1 Reply
Jayson Cain
Lender · Manhattan Beach, CA · Member since 2017 · 423 posts · 268 votes
3y
Hi @Tony Valle,

I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals. I've started looking at Columbus because my business partners have found success doing Mid Term Rentals there and the returns are solid.

I've also helped other investors with their DSCR loans and flip projects in Columbus. Happy to share my experiences and chat with you more if you're interested.

1 Reply
Josie Brown
Detroit, MI · Member since 2022 · 118 posts · 49 votes
3y
Hi Tony! I'd love to chat with you about some good markets to consider for investing in multi-family properties.
0 Reply
Ashley UndercufflerPro Member
Real Estate Agent · Los Angeles, CA · Member since 2019 · 80 posts · 25 votes
3y
Quote from @Tony Valle:

Hello fellow Investors,

I am looking to make some connections that will help me identify some good markets to invest in for multi family homes. It seems to me that there is more opportunity in the Midwest and the South. I welcome your insights.

Hi Tony!
I started investing nine years ago and I had the same question. The first thing I would suggest you do is look up states that are landlord friendly. I am six multi family in Indiana because it is very landlord friendly. This is important especially if you might have to evict tenants. I'm sure you've heard that California is very tenant friendly. We are only just now lifting them auditorium on right here so it has been very difficult for landlords.
Also it depends on what kind of investing you want to do. Do you have the cash to buy a property out right? Or would you be financing? I use the BRRRR method quite frequently, but also buying turnkey properties has been nice! There are companies out there that you can buy a single-family home, with a tenant in place generating income and already has a property management company taking care of it and collecting rent. The return is not as high as completely renovating a property yourself and renting it out or doing a cash out refinance, however they offer a lot more peace of mind.
It really depends on what is important to you and what resources you have available to you right now. I'm happy to chat more if you'd like to connect and reach out! Have a wonderful day!
Ashley Undercuffler
[email protected]
1 Reply
Tony Valle
OP
Member since 2023 · 70 posts · 42 votes
3y
Quote from @Ashley Undercuffler:

Quote from @Tony Valle:

Hello fellow Investors,

I am looking to make some connections that will help me identify some good markets to invest in for multi family homes. It seems to me that there is more opportunity in the Midwest and the South. I welcome your insights.

Hi Tony!
I started investing nine years ago and I had the same question. The first thing I would suggest you do is look up states that are landlord friendly. I am six multi family in Indiana because it is very landlord friendly. This is important especially if you might have to evict tenants. I'm sure you've heard that California is very tenant friendly. We are only just now lifting them auditorium on right here so it has been very difficult for landlords.
Also it depends on what kind of investing you want to do. Do you have the cash to buy a property out right? Or would you be financing? I use the BRRRR method quite frequently, but also buying turnkey properties has been nice! There are companies out there that you can buy a single-family home, with a tenant in place generating income and already has a property management company taking care of it and collecting rent. The return is not as high as completely renovating a property yourself and renting it out or doing a cash out refinance, however they offer a lot more peace of mind.
It really depends on what is important to you and what resources you have available to you right now. I'm happy to chat more if you'd like to connect and reach out! Have a wonderful day!
Ashley Undercuffler

Hello Ashley,
I remain awed by your gracious and thoughtful response! One of the many reasons I am considering out of state investing (and have 1 property out of state already,) remains respect for laws that support Landlords/Owners. I will likely use the equity in an existing Self Directed, RE IRA to purchase a Duplex. I want to work with about 250 to 300K for this next investment. And I also have plans to continue acquiring properties using savings and seeking creative lending options (which I need to learn about).
So, I remain open to investing in select areas of the Midwest or The South. Alabama is right next door to a property I own in FL, but I am also seeking some geographical diversity.
It has been interesting for me to learn about all of the dynamic growth happening in certain areas of the country, as business and populations move to areas where they are "treated the best." I want to do what I can to participate in this growth as well.
Regards,
Tony
1 Reply
Tony Valle
OP
Member since 2023 · 70 posts · 42 votes
3y
Quote from @Jayson Cain:

Hi @Tony Valle,

I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals. I've started looking at Columbus because my business partners have found success doing Mid Term Rentals there and the returns are solid.

I've also helped other investors with their DSCR loans and flip projects in Columbus. Happy to share my experiences and chat with you more if you're interested.

Sounds good to me, Jayson.
I will reach out to chat with you this afternoon.
I keep hearing about mid-term rentals and I am very curious to know how this would work?
0 Reply
Alli Breighner
Lender · San Diego, CA · Member since 2022 · 587 posts · 298 votes
3y
Hi Tony-

Just sent you a DM. Would love to connect.
0 Reply
Billy Daniel
Rental Property Investor · Russellville, AR · Member since 2014 · 688 posts · 509 votes
3y
Hey @Tony Valle! I'm a realtor in Arkansas and I've seen many investors look here due to the low taxes and the landlord/tenant laws.
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
3y
@Tony Valle
You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/...
(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)
Geared to SFR, but still shows the investment possibilities:)

Please send us any feedback via email, as we do not use the DM feature here.
[email protected]248-209-6824
Logical Property Management4.9469 Reviews
Website View Page
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Tony Valle
OP
Member since 2023 · 70 posts · 42 votes
3y
Quote from @Drew Sygit:

@Tony Valle
You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/...
(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)
Geared to SFR, but still shows the investment possibilities:)

Please send us any feedback via email, as we do not use the DM feature here.

Thanks for the heads up about the good things happening in Detroit, Drew!
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
3y
@Tony Valle we created our series to counteract all the negatives around the country about Detroit!
Yes, Detroit has some VERY bad areas, that we try our best to steer investors clear of, but there are some exceptional areas as well:)
[email protected]248-209-6824
Logical Property Management4.9469 Reviews
Website View Page
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John B.
Investor · Keller, TX · Member since 2019 · 76 posts · 62 votes
3y
Wow! Ive been having trouble finding a Dallas area investment (my potential future residence) that isn't negative COC with 25% down for multifamily. Seeing all these people comment about Ohio has got me considering. Maybe ill have to look in the midwest!
0 Reply
Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
@John B. Ohio seems like a great place, but I think often you might get a completely different property to cash flow in Ohio vs Texas. What I've seen in Ohio seems older, not as well built, and from what I hear tenants seem to be a bit rougher on the property. First look ROI seems good, but not sure about appreciation and turnover costs over the long run.
Economy in Ohio seems to be about as good as anywhere though....good things seem to be happening in Cleveland, Dayton, Columbus....maybe other locations too. The few times I've been there I always thought of it as the rust belt, but has been a few years and they seem to be drawing in some good business. Cleveland clinic one of the top hospitals in the nation, but area right around it seems pretty tough for the most part.
Good luck and best wishes.
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John B.
Investor · Keller, TX · Member since 2019 · 76 posts · 62 votes
3y
Quote from @Bruce Lynn:

@John B. Ohio seems like a great place, but I think often you might get a completely different property to cash flow in Ohio vs Texas. What I've seen in Ohio seems older, not as well built, and from what I hear tenants seem to be a bit rougher on the property. First look ROI seems good, but not sure about appreciation and turnover costs over the long run.
Economy in Ohio seems to be about as good as anywhere though....good things seem to be happening in Cleveland, Dayton, Columbus....maybe other locations too. The few times I've been there I always thought of it as the rust belt, but has been a few years and they seem to be drawing in some good business. Cleveland clinic one of the top hospitals in the nation, but area right around it seems pretty tough for the most part.
Good luck and best wishes.

Thats true, although I wouldn't want to live there myself, seems like 70% of people on here suggested OH as a state as the best place for ROI in this market.
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