Hi BP Community!
My name is Eric Van Vliet and I have been reading articles on bigger pockets for a few months but this is my first post! I have some experience with passive real estate investing (One SFR generating $200/month cash flow) but still consider myself a newbie due to the very passive role I had in this investment.
I am looking to significantly grow my portfolio this year with a focus on out-of-state multi-family buy and hold as my preferred strategy (but open to other types of REI!). I’m looking to connect with other investors in the area in the area in an effort to learn more about REI, and start growing my portfolio any way I can!
My name is Eric Van Vliet and I have been reading articles on bigger pockets for a few months but this is my first post! I have some experience with passive real estate investing (One SFR generating $200/month cash flow) but still consider myself a newbie due to the very passive role I had in this investment.
I am looking to significantly grow my portfolio this year with a focus on out-of-state multi-family buy and hold as my preferred strategy (but open to other types of REI!). I'm looking to connect with other investors in the area in the area in an effort to learn more about REI, and start growing my portfolio any way I can!
Welcome to the site Eric.
As you are looking into out of state investing I figured i'd share with you some best practices that I like to lay out for newer investors.
Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
Make sure your property manager is a licensed real estate brokerage.
Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.
Real Estate Agent · Chicago, IL · Member since 2017 · 715 posts · 138 votes
8y
Eric Van Vliet Welcome to BiggerPockets! It is great to have you and please feel free to jump in the community - there are certainly great people around here
Thanks for the quick responses! BP community is certainly active!
@Robert Deforge - Good to know there are some other SC folks on BP. I would love to grab a coffee and talk shop if you’re interested! Out of town at the moment but will be back next week. I’ll send you a DM when I get home.
@Ali Boone - Thanks for the response! And yes you are right... Santa Cruz certainly does not suck! It sure has changed over the years but it will always be home for me! Venice Beach ain’t too shabby either!
I’d love to learn more about Hipster Investments and turnkey investing. Do you invest locally in California or out of state? I’ve been thinking out of state just due to the high housing costs in CA. Would love to hear your thoughts! Thanks!
@Aziz Raji - Thanks for reaching out! I see you’re from Wisconsin! Go Badgers! My Grandpa played basketball on the championship team in the 40’s and I’ve always been a fan.
Anyways, I’ve been looking for markets outside California that have lower housing costs. I must say however that I haven’t really looked into the markets in Wisconsin. Are you seeing good cash flow from people investing in the markets out there?
Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
8y
@Eric Van Vliet Hi and welcome to BP! To let you know to get the mention link to work you have to type the @ sign and then start typing the person's name in the thread (or a colleague) until the name pops up in a dialogue box - then select it. This will send a mention notice to the person and will post as highlighted.
BTW, I started investing out of state via turnkey back in 2012. If you are looking for cash flow in today's markets, look mid-west young man.
My name is Eric Van Vliet and I have been reading articles on bigger pockets for a few months but this is my first post! I have some experience with passive real estate investing (One SFR generating $200/month cash flow) but still consider myself a newbie due to the very passive role I had in this investment.
I am looking to significantly grow my portfolio this year with a focus on out-of-state multi-family buy and hold as my preferred strategy (but open to other types of REI!). I'm looking to connect with other investors in the area in the area in an effort to learn more about REI, and start growing my portfolio any way I can!
Welcome to the site Eric.
As you are looking into out of state investing I figured i'd share with you some best practices that I like to lay out for newer investors.
Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
Make sure your property manager is a licensed real estate brokerage.
Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.
Insurance Agent · Phoenix, AZ · Member since 2014 · 148 posts · 66 votes
8y
@Eric Van Vliet Welcome to Bigger Pockets. I was born and raised in Santa Cruz and live in Aptos now. I'd love to connect in person if you are interested. Thank you, enjoy your time out of town! Talk to you soon.
@Larry Fried - Thanks for the tip! For some reason tagging people wasn't working for me on my phone but I'm back from vacation with access to my desktop and it's working! I'm curious to hear what mid-west markets are particularly appealing to you. So far, I've kind of honed in on Ohio (Cleveland, Columbus, Toledo) but am also looking into Kansas City and St. Louis.
@James Wise Thanks for the response and awesome info! I'm really liking what I'm hearing about Cleveland these days. I'd be interested to get your thoughts on how Cleveland stacks up to other mid-west markets for cash flow. My strategy is to start out with smaller multi-family (2-4 plex) properties to get my feet wet with the ultimate goal of investing in large multi-family properties after visiting the market and building a support team. I'm still evaluating markets at this time but to be honest I think I may be suffering from paralysis by analysis. I'm currently work as a Data Analyst so it's my nature to be analytical but I think I need to just jump in!
@Larry Fried - Thanks for the tip! For some reason tagging people wasn't working for me on my phone but I'm back from vacation with access to my desktop and it's working! I'm curious to hear what mid-west markets are particularly appealing to you. So far, I've kind of honed in on Ohio (Cleveland, Columbus, Toledo) but am also looking into Kansas City and St. Louis.
Eric, I like Kansas City, Dayton, Oh, NW Indiana in particular, but that is in part due to the turnkey providers I rely in those places. Providers can be even more important then the markets themselves.
@Ali Boone - Thanks for the response! And yes you are right... Santa Cruz certainly does not suck! It sure has changed over the years but it will always be home for me! Venice Beach ain’t too shabby either!
I’d love to learn more about Hipster Investments and turnkey investing. Do you invest locally in California or out of state? I’ve been thinking out of state just due to the high housing costs in CA. Would love to hear your thoughts! Thanks!
You bet, anytime! And no neither place sucks ;)
I have properties both out-of-state and now one in-state and local to me. That one is a more recent one to my portfolio and certainly the major outlier compared to all the rest.
As far as which to do... I think it completely depends on a) your interests, b) your goals, c) your resources (capital especially, but also skills), and d) what will make you sleep better at night. If cash flow is your main goal, go outside of CA. I think there are some scenarios as to why I would buy in CA (obviously I found a scenario since I just bought here), but I don't think there are many. I'd be lying if I said the entire thing didn't have a special layer of stress involved with it given the capital it required and the now-current mortgage payment. I don't have that kind of stress with my out-of-states because those are all just numbers for me and I can enjoy the experience without the gigantic mortgage hanging over my head.
Again, it all depends on your goals and what you are trying to accomplish. Happy to chat in more detail... reach out anytime!
@James Wise Thanks for the response and awesome info! I'm really liking what I'm hearing about Cleveland these days. I'd be interested to get your thoughts on how Cleveland stacks up to other mid-west markets for cash flow. My strategy is to start out with smaller multi-family (2-4 plex) properties to get my feet wet with the ultimate goal of investing in large multi-family properties after visiting the market and building a support team. I'm still evaluating markets at this time but to be honest I think I may be suffering from paralysis by analysis. I'm currently work as a Data Analyst so it's my nature to be analytical but I think I need to just jump in!
Always a good idea to start with the 2-4 units. The financing terms are so much better than 5+ unit buildings.
Keller, TX · Member since 2018 · 68 posts · 47 votes
8y
Welcome to BiggerPockets. You have a great vision. Congrats on getting started and the multi family game is fun. That is what we do. I would love to talk in more detail with you about your plans. We have a private real estate investing fund that focuses on value add multi family in high growth areas.
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