New Investor Looking Out of State

[Jeffrey B.]

Hi BP family,

I'm a new investor based in San Diego and actively looking to purchase my first long-term SFR using the BRRRR strategy. Ideally, I'm targeting a light-to-cosmetic rehab property in a Class B neighborhood. I realize this may feel like a bit of a unicorn in today's market, but as a first deal—especially investing out of state—I'm focused on minimizing risk as much as possible.

My total budget is $200k–$250k all-in. I have approximately 20% down in cash and plan to leverage a HELOC on my primary residence to fund renovations.

Market-wise, I’d love to invest in Minnesota, where I grew up, but current pricing there is outside my target range. The markets that interest me most right now are Toledo and Columbus, Ohio, due to the lower barrier to entry. I’ve never been to Ohio and don’t have local knowledge yet, but from my research, Columbus offers a larger population and solid population growth, though with higher median home prices and a lower rent-to-price ratio. Toledo, on the other hand, appears to offer stronger affordability, better rent-to-price ratios, and solid home price and rent growth.

At this stage, my main goal is to start building relationships. I’d love to connect with local investors, agents, property managers, or anyone active in these markets who could potentially serve as boots on the ground or help me better understand the nuances of each area.

Thanks in advance, and I appreciate any insights or connections you’re willing to share.

[Nicholas L.]

@Jeffrey B.

hello. just to be candid, OOS BRRRR for your first deal is an extremely high risk strategy. and as @Sam McCormack correctly noted, everyone wants a light cosmetic BRRRR - and so those deals are few and far between.

unless you're going to be flying to Ohio every month to manage your project i'd try to stay closer to home.  no one is going to be the QB of your project for you.

hope this helps