Out of state investor
Member since 2023 · 70 posts · 42 votes
Out of state investor
Most Popular Reply
Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
3yWhen 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.
78 Replies
- 3yAshley UndercufflerPro MemberReal Estate Agent · Los Angeles, CA · Member since 2019 · 80 posts · 25 votes
Quote from @Tony Valle:
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
It sounds like you're on the right track! Next, I would advise that you find a lender who is friendly to investors and is able to land in multiple states.
Free tip! We can borrow against our own Roth IRA's and as long as you pay it back within 60 days, you will not be penalized. I've used to just a couple times to borrow money for myself that is interest free. I live in California so at least that's the law here. (Please consult your CPA / tax specialist to make sure it applies to your retirement). I pulled 50 K out of my retirement to buy a four unit building and BRRRR'd another property. Then I refinanced the property to pull cash out and repay my Roth IRA back. It was nice saving the fee's and interest I would've spent otherwise with a bank! :D - Member since 2023 · 70 posts · 42 votes3yHello Ashley, Thanks again for sharing your experiences and your insight. It is just so amazing to me the initiative you took to accomplish your goal, using creative finance solutions and all of the resources at your disposal.
Quote from @Ashley Undercuffler:
Quote from @Tony Valle:
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
It sounds like you're on the right track! Next, I would advise that you find a lender who is friendly to investors and is able to land in multiple states.
Free tip! We can borrow against our own Roth IRA's and as long as you pay it back within 60 days, you will not be penalized. I've used to just a couple times to borrow money for myself that is interest free. I live in California so at least that's the law here. (Please consult your CPA / tax specialist to make sure it applies to your retirement). I pulled 50 K out of my retirement to buy a four unit building and BRRRR'd another property. Then I refinanced the property to pull cash out and repay my Roth IRA back. It was nice saving the fee's and interest I would've spent otherwise with a bank! :D
You write: "Next, I would advise that you find a lender who is friendly to investors and is able to land in multiple states."
You are absolutely spot on here.
I reached out to my lender who was great to work with on the refinance of my CA home, but he was not able to help me with financing in the state where the property would be located. So, I am looking for that Lender as of today.
So, I am looking for properties that cash flow, Lenders, and building the team I will need to help me achieve my goals.
I believe that there is a David Greene Networking event taking place this week on York Blvd?
Will you be attending? I have made plans to be there and I just hope I will not be late to the event.
I appreciate all of your feedback and sharing from your direct experience with Investing. - Member since 2023 · 70 posts · 42 votes3y
Quote from @Tammy Thorn:
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!
Hello Tammy, I apologize for the delayed response. I am grateful to you for your suggestion that I consider Fayetteville, Arkansas. I will reach out to you so that I may be better informed about what this area may offer an outside of state investor like me.
- Member since 2023 · 70 posts · 42 votes3y
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.Thanks, Jayson! Do you recommend that I consider Indy as well for long term, buy and hold, multi-family investments? I would love to connect.
- Member since 2023 · 70 posts · 42 votes3y
Quote from @Dave Skow:
@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
Hello Dave: Price range is 230 to 300K for a multi-family. I will need financing with a lender who can lend in all states, and I would like to get pre-approved for a loan.
- Member since 2023 · 70 posts · 42 votes3y
Quote from @Khemraj Sarju Jr.:
There are great deals in many markets. But you would need to decide what approach you will be taking for financing. Will this be a cash acquisitions, financing? We have many of clients that are leveraging their money across multiple properties with DSCR loans. After determining what your capital investment would be, that would narrow down your search criteria and areas of interest.
I will be financing. PP is a range of 230K to 300K for a multi-family. I am open to investing in a property outside of CA where I reside.
- Member since 2023 · 70 posts · 42 votes3y
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.
I am looking for a Landlord friendly market with decent job and population growth. Taxes and insurance rates are an obvious consideration. And as for what I am looking for in an investment....positive cash flow and appreciation rate of 3 to 4% rate every year. I am looking to buy and hold a property for 15 to 20 years.
- Member since 2023 · 70 posts · 42 votes3y
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 would love to learn about opportunities in Iowa!
- Rental Property Investor · Honolulu, HI · Member since 2019 · 179 posts · 91 votes3y
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.
I am looking for a Landlord friendly market with decent job and population growth. Taxes and insurance rates are an obvious consideration. And as for what I am looking for in an investment....positive cash flow and appreciation rate of 3 to 4% rate every year. I am looking to buy and hold a property for 15 to 20 years.
Those are great and if you had to rank them in terms of most important to least, what would that be? You may or may not find a market that hit all your criteria, but at least you'll identify a market to start with. If you're looking at Iowa, now you've got something to measure against.
- Real Estate Broker · Raleigh, NC · Member since 2023 · 18 posts · 27 votes3y
@Tony Valle I think you’ll like Durham, NC. As part of the research triangle, the market is still hot! There are still plenty of duplexes in that area and you may see a triplex here and there. Homes are selling fast in that area, if you’re interested feel free to shoot me a message or give me a call. Happy to help!
- Real Estate Agent · Indianapolis, IN · Member since 2022 · 45 posts · 52 votes3y
@Tony Valle and @Ashley Undercuffler, my partner @Tyler Lingle and I invest, live, and work in Indy. I'll reach out privately and we can set up a call. We have a handful of great lenders -- working with one of our guys will give you a competitive edge in a competing offer situation. And we have personal connections with a couple property management teams that would likely fit your needs.
In other words, let's schedule a call.
- 3yAndrew FreedBusiness MemberInvestor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
@Tony Valle - Worcester MA was one of the top markets to invest in in 2023 and that's where I invest. Worcester has a lot going for it, it is the top growing city in New England, it has a growing biotech hub, a ton of good schools, hospitals and a minor league baseball team, the WooSox. There is also about 2,800 luxury condos going in right near the new WooSox stadium. Lastly, it is geographically in the center of 5 major cities: Boston, Providence, Hartford, Lowell, Nashua. It's very accessible to many parts of New England. I love this market and think it has a ton going for it.
- Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes3yNC as a whole can offer you quite a bit of what you are looking for, it's a pretty landlord friendly state, taxes are average, and many cities are experiencing solid population growth and appreciation. Places like Charlotte, and Durham being some of the best appreciation in the country. Not only that but the price points are pretty agreeable in most areas, and with a large military population in multiple places in the state, there's always opportunity there to work with them.
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.
I am looking for a Landlord friendly market with decent job and population growth. Taxes and insurance rates are an obvious consideration. And as for what I am looking for in an investment....positive cash flow and appreciation rate of 3 to 4% rate every year. I am looking to buy and hold a property for 15 to 20 years.
If you take an interest in NC markets, I have done many Market Breakdown posts in NC that you may find helpful. I will link Raleigh for you to check out if you feel so inclined (I've also done places like Charlotte/Durham/Winston/Gboro, and more). If you get any value out of it, I would love to connect and hear some feedback.
https://www.biggerpockets.com/...
Cheers! - 3yPhillip AustinPro MemberProperty Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
@Tony Valle I recommend checking out tertiary markets in the Mid-West and South. Then, cross-reference those markets with population and economic trends.
Columbus, OH, Jackson, MS, Kansas City, MO are some hotter markets. However, I would check out Huntsville, AL which was recently voted #1 Best Places to Live: https://realestate.usnews.com/...
- Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes3y
@Tony Valle Happy to chat about the KC market. Love this market that is my backyard and other investors do too.
Quote from @Tony Valle:
Quote from @Dave Skow:
@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
Hello Dave: Price range is 230 to 300K for a multi-family. I will need financing with a lender who can lend in all states, and I would like to get pre-approved for a loan.
Tony - thanks for the feedback ... let me know if you would like to begin the pre approval .....I will forward another DM
- Member since 2023 · 70 posts · 42 votes3y
Quote from @Alex Olson:
@Tony Valle Happy to chat about the KC market. Love this market that is my backyard and other investors do too.
I look forward to a chat to hear about opportunities in KC.
- 3yScott AllenBusiness MemberReal Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
Ohio in general is very landlord friendly. Columbus is great for cash flow, growth, and appreciation. Cleveland is good for primarily cash flow. Smaller markets like Dayton, Newark, and Toledo are alright too.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes3y
Quote from @Scott Allen:
Ohio in general is very landlord friendly. Columbus is great for cash flow, growth, and appreciation. Cleveland is good for primarily cash flow. Smaller markets like Dayton, Newark, and Toledo are alright too.
Ohio = The Dopest
- Investor · Huntsville, AL · Member since 2015 · 149 posts · 80 votes3y
Quote from @Phillip Austin:
@Tony Valle I recommend checking out tertiary markets in the Mid-West and South. Then, cross-reference those markets with population and economic trends.
Columbus, OH, Jackson, MS, Kansas City, MO are some hotter markets. However, I would check out Huntsville, AL which was recently voted #1 Best Places to Live: https://realestate.usnews.com/...
Huntsville is one of the best markets in the country in my opinion. I have had great success there over the past year or so. I could not recommend it more!
- Member since 2023 · 70 posts · 42 votes3y
Quote from @Chris Mignone:
Quote from @Phillip Austin:
@Tony Valle I recommend checking out tertiary markets in the Mid-West and South. Then, cross-reference those markets with population and economic trends.
Columbus, OH, Jackson, MS, Kansas City, MO are some hotter markets. However, I would check out Huntsville, AL which was recently voted #1 Best Places to Live: https://realestate.usnews.com/...
Huntsville is one of the best markets in the country in my opinion. I have had great success there over the past year or so. I could not recommend it more!
Huntsville is certainly on my radar and I appreciate your vote of support for this market.
- Investor · Huntsville, AL · Member since 2015 · 149 posts · 80 votes3y
Quote from @Tony Valle:
Quote from @Chris Mignone:
Quote from @Phillip Austin:
@Tony Valle I recommend checking out tertiary markets in the Mid-West and South. Then, cross-reference those markets with population and economic trends.
Columbus, OH, Jackson, MS, Kansas City, MO are some hotter markets. However, I would check out Huntsville, AL which was recently voted #1 Best Places to Live: https://realestate.usnews.com/...
Huntsville is one of the best markets in the country in my opinion. I have had great success there over the past year or so. I could not recommend it more!
Huntsville is certainly on my radar and I appreciate your vote of support for this market.
Feel free to reach out if you ever want to discuss!
- Real Estate Agent · Boise, ID · Member since 2019 · 192 posts · 184 votes3y
Hey Tony!
I just wanted to introduce myself.
I am an agent and investor here in the Boise market. I work with a lot of OOS investors who have been loving the appreciation that Boise can offer. Our long term and short term rentals do really well here also.
I'd love to talk more about it if you're interested!
Good Luck,
-Lexey
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