Newbie from Orange, California looking out of state!

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Newbie from Orange, California looking out of state!

Brandon Benson
Irvine, CA · Member since 2017 · 9 posts · 4 votes

Hello BP! Just wanted to quickly introduce myself. Recently join the forums and have been listening to podcast for a few months.

I was a realtor in San Diego for 3 years and currently work for one of the largest RE development companies in CA. Also, I have 6 years experience in property management, and some accounting, finance, and auto experience.

Out of state investing in small multifamily, and single family, buy and hold is my strategy. Value ad would be hard to manage the rehab from OOS and am looking for established, quality areas with good schools and CASH FLOW! May progress to mid sized apt buildings eventually. My wife has family in Ohio which means, I have been looking from Indianapolis through Ohio, all the way to Pittsburg. 

Always appreciate advice as the rust belt is a foreign land to me!

Look forward to jumping into REI

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David Gonzalez
Realtor · Camarillo, CA · Member since 2014 · 162 posts · 102 votes
9y
I would suggest what ever area you decide to invest in you build your portfolio in one area. Also would suggest you focus on stable multifamily homes in A/B neighborhoods requiring minimal work. Your first couple of deals should be conservative so you can build up your systems/infrastructure and get the hang of it.
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  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    My advice is to actually stay in California to invest.  Investing in your own back yard has advantages.

    Next, be careful investing in rust belt towns.  Pick a stronger areas in the midwest.  

    0Reply
  • Jorge Barboza Jr.
    Investor · Yorba Linda, CA · Member since 2016 · 114 posts · 32 votes
    9y

    Hey @Brandon Benson Welcome to BP! I am in a very similar situation and have been starting my exploration of OOS. 

    Best of luck and let me know if there is anything i can do for you.

    Below is what I am exploring:

    - Reno

    - Columbus

    - Fort Wayne

    - Detroit

    - KC

    My goal is to explore first and then make a decision on where to focus. From there I will schedule a trip and get to know the area.

    Also looking at high end real estate in California. If you have any information on that please let me know.

    THanks

    1Reply
  • Brandon Benson
    OP
    Irvine, CA · Member since 2017 · 9 posts · 4 votes
    9y

    @Brian Ploszay I wish this was an option. The average single family in Orange county just hit $700K.  2-3 hour drive will get me to duplexes in the $250k - $300k range in very low economic areas and won't come close to the 1% rule. Then the tenants are very hard to come by and vacancy is high. Also, I pushed my search out a few more hours and still not been happy with the numbers.

    @Jorge Barboza Jr. PLENTY of high end real estate in CA as you know! I am interested to see what you find on your exploration, keep me updated. I also thought about Detroit as great deals are plentiful, and some big money is coming into the city to rebuild. The city still has me concerned and is not quite the yield play I desire.

    0Reply
  • Jorge Barboza Jr.
    Investor · Yorba Linda, CA · Member since 2016 · 114 posts · 32 votes
    9y

    I will definitely keep you up to date @Brandon Benson 

    I am starting to talk to one invest here in LA. 

    Detroit is still scary but up 17% since last year and several actions for improvement. I am going to deep dive Detroit because it is still a "blue ocean", no one is getting aggressive there.

    1Reply
  • Account Closed
    Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
    9y

    @Brandon Benson @Jorge Barboza Jr.

    I thought about Detroit for some time and I came across some info. Here is a link if you guys want some info on their plans to rebuild:

    http://kresge.org/sites/default/files/Uploaded%20Docs/Detroit-Future-City-executive-summary.pdf

    All the best to you both. 

    Jorge

    0Reply
  • Scott R.
    Investor · Torrance, CA · Member since 2017 · 10 posts · 1 vote
    9y

    @Brandon Benson @Jorge Barboza Jr.

    It looks like we're all in/exploring similar areas at the moment.  I'm looking in WI (many friends there/potential investors) and IN also.  Jorge R., looks like you're in the WI market already! Would like to hear about some of your experiences so far.  Let me know if anyone's interested in getting together at a meetup or meeting up to chat around South Bay/OC in the near future.

    0Reply
  • Account Closed
    Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
    9y

    @Scott R. 

    I'm getting there. In 2 months I should have the cash to begin my REI career. I've been doing my homework and speaking to a lot of good people in Milwaukee and also following them here on BP

    Some of those are the following and I hope they don't minds me mentioning them...here they are:

    @Michael Henry @Shawn Ackerman @Rebecca Knox @Daniel Hanson @Marcus Auerbach 

    These are the ones that come to mind right now.

    Let me know when you want to hook up...my info is in my signature.

    Jorge

    1Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Account Closed thanks for the mention.  As always I’m here my friend.  When you are ready, I’m ready.  As you know I am an oos investor from the east coast and Milwaukee has been my second home for the past few years.  It’s a solid cash flow play. 

    1Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    KC has been talked about a lot on line... and a ton of info out there. But it's def gotten more and more competitive even in the short time i've been watching/investing in it.

    0Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    @Jorge Barboza Jr.

    Detroit is simply not a place for an out of state investor to go, unless you have a local partner, strong boots of the ground or you have excellent market knowledge of the area.   The area downtown is making a stunning comeback.  But that is a small portion of the city.  The city as a whole is still losing population.

    @Brandon Benson    I am shocked that the average house in Orange County is 700K.   The average household income in Orange County is far more modest, around 80K.   A lot of people must be stretching to buy anything.  I think the prices are artificially constrained because of the inability to develop new housing stock to meet the demand for housing.  Irvine, for example, has so many restrictive covenants, that you just can't build density housing.

    0Reply
  • Brandon Benson
    OP
    Irvine, CA · Member since 2017 · 9 posts · 4 votes
    9y

    @Jorge Barboza Jr. @Scott R. - I would be up to meet and discuss sometime soon. Let me know and I can set something up! @Account Closed

    @Brian Ploszay - Well, the exact statistic state the "Median" home price is 788K. This is absolutely astonishing to me. People are leveraged way over their heads and I think the upcoming cycle turn will really bring them back to reality... once again! A recent article in the local OC register newspaper states, an "income required of 158k to afford the average home in OC, which only 21% of OC households earns. INSANE!

    The crazy part, the company I work for owns and manages over 60,000 units mostly in Irvine, and a few in Northern CA bay area. ONE bedrooms start around $1600 and the average TWO bedrooms are $2200+ per month. The real fun fact... we have communities in Newport Beach area that on average for the entire community (200 + units) 2 bedroom RENT is over $5000. I spoke to a resident the other day that was paying $8000 per month for his apartment. Yup.

    0Reply
  • Don Tillung
    Investor · Milwaukee, WI · Member since 2015 · 50 posts · 11 votes
    9y

    @Scott R. Let us know what areas, price points, and SFR/Duplex/Tri-Plexes you're looking for in the Milwaukee/Waukesha WI market. We primary wholesale and every once and great while grab one to put $5-10k in and put back on the market (wholetail).

    Depending on your risk tolerance and what you're looking for we may have something for you currently. We have one right now that i can think of off the top of mind w/ purchase price $35k and it's rented out for $1,100 a month. Reach out to Jason if interested at our phone number in the signature.

    0Reply
  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    9y

    Out of state can sometimes workout if you have trusted contact in your area. Once you leave your home base many aspects of owning becomes even more of a challenge. Why the Midwest if you go out of state why not try stay a little closer like Vegas, Arizona and Oregon. Have an investor here in local in Irvine went to Milwaukee not a great outcome and really had a management issue. Eventually sold at a loss.

    [email protected]
    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Brandon Benson:

    Hello BP! Just wanted to quickly introduce myself. Recently join the forums and have been listening to podcast for a few months.

    I was a realtor in San Diego for 3 years and currently work for one of the largest RE development companies in CA. Also, I have 6 years experience in property management, and some accounting, finance, and auto experience.

    Out of state investing in small multifamily, and single family, buy and hold is my strategy. Value ad would be hard to manage the rehab from OOS and am looking for established, quality areas with good schools and CASH FLOW! May progress to mid sized apt buildings eventually. My wife has family in Ohio which means, I have been looking from Indianapolis through Ohio, all the way to Pittsburg. 

    Always appreciate advice as the rust belt is a foreign land to me!

    Look forward to jumping into REI

    Hello and welcome! Buying out of state can be great if you live in a market like CA where it is almost impossible to invest. Give a look into the Midwest. Housing here is affordable, but the rents are going up and the market looks good!

    Best of luck to you!

    0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Hi @Brandon Benson welcome to the site! That's great you have a lot of experience and this site can give you a bigger edge on your education. 

    I'm in your area, it would be great to meet up sometime when we have the time. I host a monthly meeting close to you. Check out the link below, the next meeting in Wednesday October 11. 

    https://www.meetup.com/Irvine-Real-Estate-Networki...

    The McKernan Group4.957 Reviews
    WebsiteView Page
    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    9y

    @Brandon Benson

    Welcome to the BP family! Great that you joined the site! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
    Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

    Wishing you the best!

    0Reply
  • David Rawls
    Investor · Sterling Heights, MI · Member since 2015 · 98 posts · 26 votes
    9y

    Welcome @Brandon Benson!

    My partner @Ryan York and I invest in the Southeast Michigan area, Metro Detroit to be specific. There are plenty of turnkey cash flowing properties around here and we come across them rather frequently. Our business plan involves more of a value-add strategy so these properties are of no use to us.

    If you'd like to connect and learn more about our market, all you have to do is reach out! I'm a licensed Realtor as well.

    1Reply
  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    Thanks for the mention Jorge. 

    We work with many out of state investors from CA. Many select Milwaukee to invest in because of the excellent cash flow opportunity as opposed to CA and because of the extremely helpful and welcoming local real estate community. Whether you're investing in your own backyard or out of state, the key to success is doing due diligence to build a solid and trusted team. We help run Brew City REI which is over 700+ investors and just watching the group posts, helps you to understand the challenges and wins going on, learn more about the market and see the deals that people are getting.

    Captain Save-A-Home LLC
    WebsiteView Page
    1Reply
  • Timothy Murphy III
    Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
    9y

    @Brandon Benson

    Welcome to BP.

    0Reply
  • Matt Motil
    Rental Property Investor · Cleveland, OH · Member since 2015 · 1k+ posts · 880 votes
    9y

    Welcome aboard Brandon, I do out of state investing, hit me up if you are interested!

    0Reply
  • Brandon Benson
    OP
    Irvine, CA · Member since 2017 · 9 posts · 4 votes
    9y

    @Jo-Ann Lapin Honestly, the reason for the Midwest is my wife has family out there. Not that they will be participating in the investing, however, it is nice to have somewhere to stay, and someone that can drive by the property and make sure it is still standing! I also see many investors meeting the 1% rule and even up to 2%. I plead complete ignorance on Vegas, Arizona and Oregon. Do you have any insight to share, I would love to hear it! My sister lives in Portland and the market has skyrocketed over the past few years, not sure if the numbers work. As an OOS investor I theoretically could go anywhere... Just need to pick a place and get started.

    @Peter Mckernan I would like to join the meet up on Wednesday. It is in the calendar! Thanks for the invite.

    1Reply
  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    9y

    feel to pm me and we can speak. Awesome to have family in the areas. It does make a huge difference.

    [email protected]
    0Reply
  • David Gonzalez
    Realtor · Camarillo, CA · Member since 2014 · 162 posts · 102 votes
    9y
    I would suggest what ever area you decide to invest in you build your portfolio in one area. Also would suggest you focus on stable multifamily homes in A/B neighborhoods requiring minimal work. Your first couple of deals should be conservative so you can build up your systems/infrastructure and get the hang of it.
    2Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    @Brandon Benson

    California real estate investors have a skewed perspective.  The rest of the country's real estate doesn't behave like this.  The prices are amped up because of off shore investment as well.  

    60,000 units.   You must work for the Irvine Companies.  

    1Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    @Brandon Benson Of course! Glad you can make it and looking forward to seeing you there! 

    The McKernan Group4.957 Reviews
    WebsiteView Page
    0Reply
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