First Property Out of State

San Clemente, CA · Member since 2017 · 4 posts · 10 votes

Hey all! I live in Southern California and want to purchase my first property out of state since the market here is so high (over my budget). How realistic is it to find a cash flow positive property when investing from out of state? Any recommendation on markets?

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Min ZhangBusiness Member

Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes

Hey Zak! I personally love the Cleveland market for its cash flow. I invest heavily in this area as an agent. I grew up on the east side of the town with a well versed knowledge of the neighborhood. I have a neighborhood grade guide my team has been working on in Ohio. We regularly update it. A lot of investors prefer to stay in the C and D neighborhoods because that is where you get the best cash flow. There are also some great tax benefits to investing in opportunity zones which are commonly located in C and D areas. Let me know how I can help!

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Engelo RumoraBusiness Member
Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
2y
Quote from @Wendy Patton:

@Zak Beard hey the key to investing for out of state is not only the property (of course) but most importantly the property manager - finding an honest and good one is not always as easy as you would think. If you ever want to invest in MI let me know - I get nothing for it but I do run the Michigan Real Estate Investors group and connect with you with legit people and areas - I tend to hear the dirt and good stuff on investors, areas, Pms, contractors, etc..... feel free to reach out if you end up wanting to know more about Detroit or Pontiac/ etc investing

100% agreed.

A good/bad property manger can make or break a good/bad property.

I know of many folks making bank with crap properties in crap areas.

Why?

Because PM is on the ball and know's how to work the rough markets.

Thanks
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Rick H.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
2y
Owning “performing” rental property is enough of a challenge.
Adding other factors will only compound the challenges and work against you as you learn how to be an effective investor.
Imagine having to supervise work that should have been completed (but was not) in the Inland Empire. Could be tolerable but unappealing to drive (90) minutes each way to check on progress.
Now, think how difficult that would be if the property was in the mid-west. Gonna fly there?
So many skillsets to learn and master locally. Then, you might learn how to pick properties and management who share your priorities and standards.
Study local markets. Attend real estate club meetings. AVOID syndicators (who will happily take your money). Listen to the stories of the people who are “in the trenches” and what must do to find, acquire and profit from cash flowing rentals.
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