New to Bigger Pockets

18 Replies

Hey There,

I'm new to real estate investing. Currently living in NY (temporarily) but I'd like to invest out of market, which I know is probably not recommended for beginners, but I'm open to it.

I've been reading some of the Bigger Pocket books and they talk about Turnkey Properties, which sounds interesting, but not sure if those properties usually cashflow well enough if you're paying a premium for the property + the company to manage it? I've thought that it might be an option for a couple markets I've liked in the suburbs of Chicago or Milwaukee 

My wife and I are also considering a move to Philadelphia to raise our family and I thought maybe it makes sense to start there, but I'm not sure how strong the market is there right now. From what I understand the school systems are lackluster and job market is so-so. 

Just looking for a few pointers and perhaps some help finding the right direction

Thanks!

@Rob Bianco

Welcome and investing out of state can be good if you have a solid team in place.  I have been investing out of state for a decade now and I can tell you having a good team is crucial.  

I would attend some REI meetings as New York has quite a few. It doesn't hurt to meet others in the business and pick their brains.

Best of luck!

Originally posted by @Rob Bianco :

Hey There,

I'm new to real estate investing. Currently living in NY (temporarily) but I'd like to invest out of market, which I know is probably not recommended for beginners, but I'm open to it.

I've been reading some of the Bigger Pocket books and they talk about Turnkey Properties, which sounds interesting, but not sure if those properties usually cashflow well enough if you're paying a premium for the property + the company to manage it? I've thought that it might be an option for a couple markets I've liked in the suburbs of Chicago or Milwaukee 

My wife and I are also considering a move to Philadelphia to raise our family and I thought maybe it makes sense to start there, but I'm not sure how strong the market is there right now. From what I understand the school systems are lackluster and job market is so-so. 

Just looking for a few pointers and perhaps some help finding the right direction

Thanks!

 Hello and welcome! Best of luck to you!

Welcome to BP, Rob!! Good luck!! Are you looking to wholesale, flip, or buy and hold in Philly?

@Brendan Thanks. I'll be sure to do so.

Starting out I think I'm most interesting in Buy and Holds. 

Hi Rob, if you are considering Milwaukee, in my opinion, the best thing is the network of investors that help each other here.  From the experiences I have heard of, I found that companies that only specialize in providing turnkeys tend to be higher priced both on the initial purchase as well as management fees.  There are many local property managers who are investors themselves and don't necessarily focus on only turnkeys but they will go view properties for purchase for their clients as well as get it rental-ready. I can refer you to the PM we use if you'd like.  If you are deciding between Chicago and Milwaukee, connecting with the local investment groups also will help to understand each of the markets better and developments going on. 

Welcome! From where I'm sitting, take care of your family's needs first. Where do you guys want to live and raise your family? There are jobs in every market for people with the right attitude and real estate investments don't have to be bound by location. That being said, it is easier to break into real estate in lower dollar areas and I'd definitely recommend getting started in a location that you're familiar with before branching out into other areas. If the economy is lagging behind a bit in Philadelphia, that could be a pro not a con as it gives you an easier (lower dollar) way into the market. You could consider house hacking a multi-family to get started since you're moving anyways. Best of luck to you and yours. 

Thanks to everyone for the warm welcome. 

Right now my family's financial needs are being met just fine, so that's not much of a concern.

I think my main goal is cashflow and having been able to turn a consistent 25% return in the stock market over the last 3 years has made me realize that I'm really looking for at least a 7%-9% Return on my Investment (appreciation just being icing on the cake). So whether I invest far away in an emerging market or close to home, that's ideally what I'm looking to do

Hi @Rob Bianco

Welcome to BP!

I am originally from North Jersey outside NYC and understand the cost of that area.

The inventory is still tight in Philadelphia due to development and being a go between for DC & NYC.

I can confirm your buy in for the Philadelphia Market is great for families. As anywhere else, the counties surrounding Philadelphia Count (DELCO, Bucks and Montco) are very busy as families grow out of Philadelphia County. The taxes are still lower in compare to the NYC market. Do see more House Hacking in the surrounding counties more than ever in the past 5 years.

Let me know if you have any questions.

Regards

Joe Scorese

@Rob Bianco Welcome to BP, I myself am a new member as well. One of the many resources on this site that I have found to be very useful are the BP podcasts. To me it is like being part of a conversation with those who have had the same questions that I have, or are in the same situation as me (working full time while searching for my first deal). I have found great insight on how to execute my goals through listening to those who have already done it. Here is a link to one of the podcasts about investing in rentals out of state, I'm sure it will shed some light and maybe help with your plan of action. Good luck with your real estate goals in 2018! 

https://www.biggerpockets.com/renewsblog/bp-podcast-211-investing-out-of-state-rentals-notes-with-bob-malecki/

@Rob Bianco Welcome to BP and the world of REI! Turnkey investing can be a good way to start when you are venturing into OOS investing. That is what I did some 5 years ago, and expanded from there. Now, finding the right team to work with can be even more vital than choosing the market. Philly could be a really good place to start for you as you are so close already, but I am not sure there are any really trustworthy and reliable turnkey providers there.

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