Emerging Out of State Investor

Sean GrahamBusiness Member

Investor , CPA · Detroit, MI · Member since 2016 · 587 posts · 249 votes

Welcome to BP! @Brian Schunck. Building long-term rentals with predictability and family in mind is a strong foundation, especially when you stay disciplined out of state. As that balance between growth and stability is exactly what makes out-of-state investing work long term.

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Kerlous TadresBusiness Member

Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes

[email protected]614-490-1163

@Brian Schunck, I’d recommend buying a “vacation” property only if it works as a conservative long-term rental first, and treat any short-term rental income as extra. Pick one market, build a strong local team (agent + lender + property manager), and don’t rush the first deal.

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OP

Member since 2026 · 5 posts · 11 votes

Thank you @Joey Banasihan for sharing about your friend. It seems as if I am in a similar situation. My wife is actually the bread winner in our home. I work as well, but her work carries us for sure. I just want to make sure that when it's time for her to retire, she can. Besides retirement, adding a level of flexibility in our day to day life would be great and I think that's what your response touches on with not having it all in one basket.

The hard part is that she knows we need to invest, but her risk tolerance is pretty low and the money we need to invest is money that she saved to create that security. I say she because she is so disciplined when it comes to that. I'm really just trying to educate myself as much as possible so she can lean on me to take us in this direction. The hard part is that I can read, listen and talk all I want but the real learning comes with just jumping in. So, yeah, just trying to figure it out.

OP

Member since 2026 · 5 posts · 11 votes

@Kerlous Tadres. You know your advice was so simple, but I think I'm my mind I was going to underwrite the deal based on the STR. I think you're right though. The ultimate conservative underwriting would be to base it on an LTR. Some vacation home markets don't work as LTR, though, right? Thanks again.

OP

Member since 2026 · 5 posts · 11 votes

Hi @Sean Graham. What examples of discipline would you stress in out of state investing?

Sean GrahamBusiness Member
Investor , CPA · Detroit, MI · Member since 2016 · 587 posts · 249 votes
9mo
Quote from @Brian Schunck:

Hi @Sean Graham. What examples of discipline would you stress in out of state investing?
Discipline for me usually comes down to three things: conservative underwriting (especially rents and expenses), sticking to a tight buy box even when deals are scarce, and having clear third-party checks in place, property management, inspections, and regular financial reporting. Out of state works best when decisions stay process-driven, not reactive to market noise or emotions.
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Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9mo
Quote from @Brian Schunck:

Hi @Sean Graham. What examples of discipline would you stress in out of state investing?

Hi Brian, As an OOS investor and someone who have worked with over 50+ investors in the Milwaukee market,I would suggest having control over as much as possible. Meaning I would build my own team vs. looking to a turnkey operator or a single property management company to do everything for you. Also I would learn how to source my own deals. These are things just to start as there are others. Best of luck
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OP

Member since 2026 · 5 posts · 11 votes

Thanks @Sean Graham. I really can't wait to find my market and build a team. I've actually been looking a little in the Walled Lake and Orchard Lake area and Saint Claire Shores and Grand Haven. I'm guessing you are familiar with these areas.

Thomas Meyer

Property Manager · Boise, ID · Member since 2024 · 20 posts · 7 votes

Hi Brain reaching out from Boise Idaho here. I deal with several California people investing in Idaho. For example I helped a lady out of Templeton California purchase a home in Eagle Idaho whereas she will one day retire in Idaho. I also own a property management company whereas I rent her home out monthly. Diversifying out of state is smart biz.

Thomas Meyer

Property Manager · Boise, ID · Member since 2024 · 20 posts · 7 votes

Hi Brian reaching out from Boise Idaho here. I deal with several California people investing in Idaho. For example I helped a lady out of Templeton California purchase a home in Eagle Idaho whereas she will one day retire in Idaho. I also own a property management company whereas I rent her home out monthly. Diversifying out of state is smart biz.

Arman AhmedPro Member

Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes

[email protected]614-418-6081

@Brian Schunck

For first out-of-state deals, Midwest markets often give you the chance to buy undervalued properties with strong cash flow, manageable rehab, and multiple exit strategies, whether you lean short-term or long-term. Focusing on these areas makes scaling and building a solid portfolio much smoother, especially with reliable local lenders, contractors, and property managers in place. You’ll get experience without overexposing yourself in super competitive markets.

Alfath AhmedBusiness Member

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

[email protected]614-802-5698

Quote from @Brian Schunck:

Hello Bigger Pockets community,

My name is Brian. I have been educating myself over the last few years about protocols and processes that it takes to invest in real estate. I grew up in a small suburb in San Diego. My parents, who were immigrant baby boomers, stressed the importance of hard work and home ownership. That notion has planted a seed in me that attracts me to the real estate path in a way that feels innate. I do not think I was sent from above to be the next Messiah of the Fix and Flip or The King of the Slow BRRR. (Shot out @Dave Meyer) I would just like to build a portfolio that could have 2 million or so in equity 15 years from now and help my wife and I retire comfortably. That seems to be in the range of 3.5 - 7 properties depending on the market, but that is also just my "emerging investor" calculation so I hope to gain insight into our journey as we gain experience and get more savvy.

My wife and I are complete opposites. She wants the heater pumping and I'm always sweating. She'll be late to her own funeral, and I'll be an hour early to my own surprise birthday party. When it comes to real estate investing it is no different I am open to some risk and uncertainty, because I believe that's how we grow. She is more oriented toward security, predictability and saving. That's where she finds safety and comfortability for our future. I think a healthy mix of both of our mentalities can set us up nicely in the real estate business.

About a month ago my wife told me that she would love to have a vacation home somewhere by the water where we can build life long memories with our 3 children. As she was talking all I heard was "out of state investment property (we live in California) leaning short term rental in an emerging neighborhood where we can fall back on long term rental to give us multiple outs."

The first thing I did was reach out to some friends that connected me with a lender, we just got pre approved. I'm also going to reach out to a credit union and we are off to find our market and build our business.

Sorry for the long introduction, but I wanted to paint the picture so I can build community in this the infamous Bigger Pockets forum. Thank you everyone.

Good that you are getting started. I'd recommend looking outside of California into midwest markets. Your money will go much further. Look into a state that has good population growth, job growth, and a ton of tech investments.

Connect with an investor-friendly realtor, pick their brain to understand the market. You should look into buying a turnkey single family or duplex that is 15-20% cheaper than market value (Sales comps).

Your agent should be an investor that can connect you with good lender, contractors, and property managers.

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Sandy Hu

Rental Property Investor · CA|AZ|MI · Member since 2018 · 59 posts · 22 votes

8mo

Quote from @Brian Schunck:

Hello Bigger Pockets community,

My name is Brian. I have been educating myself over the last few years about protocols and processes that it takes to invest in real estate. I grew up in a small suburb in San Diego. My parents, who were immigrant baby boomers, stressed the importance of hard work and home ownership. That notion has planted a seed in me that attracts me to the real estate path in a way that feels innate. I do not think I was sent from above to be the next Messiah of the Fix and Flip or The King of the Slow BRRR. (Shot out @Dave Meyer) I would just like to build a portfolio that could have 2 million or so in equity 15 years from now and help my wife and I retire comfortably. That seems to be in the range of 3.5 - 7 properties depending on the market, but that is also just my "emerging investor" calculation so I hope to gain insight into our journey as we gain experience and get more savvy.

My wife and I are complete opposites. She wants the heater pumping and I'm always sweating. She'll be late to her own funeral, and I'll be an hour early to my own surprise birthday party. When it comes to real estate investing it is no different I am open to some risk and uncertainty, because I believe that's how we grow. She is more oriented toward security, predictability and saving. That's where she finds safety and comfortability for our future. I think a healthy mix of both of our mentalities can set us up nicely in the real estate business.

About a month ago my wife told me that she would love to have a vacation home somewhere by the water where we can build life long memories with our 3 children. As she was talking all I heard was "out of state investment property (we live in California) leaning short term rental in an emerging neighborhood where we can fall back on long term rental to give us multiple outs."

The first thing I did was reach out to some friends that connected me with a lender, we just got pre approved. I'm also going to reach out to a credit union and we are off to find our market and build our business.

Sorry for the long introduction, but I wanted to paint the picture so I can build community in this the infamous Bigger Pockets forum. Thank you everyone.

Welcome Brian — appreciate the thoughtful intro.

You and your wife actually sound like a strong combo for real estate: one focused on upside, one on downside protection. That balance tends to produce better long-term decisions than either extreme alone.

For out-of-state + flexible use (STR → LTR), I'd encourage you to pressure-test regulatory risk and reversion rents early, even before falling in love with a market. It keeps optionality real, not theoretical.

Looking forward to seeing where you land.

Account Closed

Member since 2026 · 35 posts · 3 votes

6mo

You’ve got an awesome story and a really clear vision, Brian — thanks for sharing it so openly, it’s helpful for a lot of people who are in that “emerging investor” phase but haven’t posted yet.

I really like how you’re thinking about the vacation home: instead of just viewing it as a consumption purchase, you’re already framing it as an out‑of‑state investment with multiple exit strategies (short‑term rental now, long‑term rental as a backup). That mindset alone puts you ahead of a lot of first‑time buyers.

For folks in your situation (wanting lifestyle + investment + risk management), some things that tend to work well are:

Getting super clear on criteria before you pick a market (drive‑to vs fly‑to, seasonality, STR regulations, local employer base if you ever go long‑term, etc.).
Stress‑testing the numbers as a pure long‑term rental first, and then treating any short‑term rental income upside as a bonus, not a requirement.
Building a local “boots‑on‑the‑ground” team early (agent, lender, PM/cleaning, handyman), since that’s usually what makes or breaks out‑of‑state investing.

Since you’re already pre‑approved and talking to a credit union, you’re doing the right next step: lining up the capital stack while you narrow in on a market. As you keep refining the goal of “2M in equity over ~15 years,” you might find it helpful to map that into a simple plan (for example, how many purchases over the next 3–5 years, what kind of cash flow and equity growth each one needs to pull its weight, and how that fits with your wife’s comfort level).

Looking forward to hearing where you land for that first out‑of‑state/vacation market and how you structure the deal.