New investor from Boston looking to invest out of state

13 Replies

Hi all! I have never invested in any properties but I have been thinking about doing so for some time. I have been doing a lot of research and decided that the best way to create passive cash flow is through owning rental properties. That is why I have decided to go the buy and hold route and embark on this journey once and for all... I also have decided to invest out of state, as I am from the East coast and properties are very expensive in my own backyard. My focus is in blue-collar working class neighborhoods in B or C neighborhoods in cities such as Jacksonville, Austin or Indianapolis. I like Jacksonville because of its consistent job growth, Austin for its recent population boom and Indianapolis for its low prices and high ROI. I also know that I would like to invest in single family homes renting anywhere from $500-$1000/month for homes costing anywhere from $30-65k including renovation costs. These are typically builders grade homes with 2-3 beds and 1-2 baths. I am looking to start turnkey to dip my feet into a market, but eventually would like to get a team started in a targeted city. This would involve boots on the ground including realtors, contractors and property management. I believe real estate is a business that involves 20% working the numbers and 80% dealing with people. I know that the key to successful real estate investing is having great relationships with your investment partners. So that is my story...I am glad to have found this community and look forward to speaking and listening to the many fellow investors on this site as I embark on this journey. Please do not hesitate to reach out to me to talk at anytime. I would love any advice or suggestions and welcome any contacts looking to connect with potential investors, especially those in target cities. I also just like discussing real estate and investing strategies in general, and look forward to sharing my experiences as I start my life as a real estate investor. Thank you for taking the time to read my post and hope to hear from many of you soon! Take care, Ben K. from Boston
HI @Ben Koslof and congratulations. I myself invest in Indianapolis and think it’s a great city. I can’t speak for the other cities u named but will share a few poInts to help. 1. U want to stick with B grade unless ur a seasIned Investor about to buy at least ~10 SFR quIckly. 2. Only buy homes that will rest for over $700, anything less and u’ll be renting to the wrong people. 3. U can’t easily find B class properties to be all in for $65k. You will have to build some strong relationships with some serious wholesalers and then buy a few deals from them before they’ll share the BEST deals with u. Even then you’ll have to have a significantly higher price point. I’d be happy to chat with u about it and see if I can make a few additional suggestions but as u said u need a solid team and it will take some time. My suggestion is to start with a blog post from a few years back that had something like ~80 questions for PM’s, waddle that down and then find yourself 2 PM’s, pick one and alternate giving them properties. So once u have 10 SFR’s each PM manages 5. After that continue building your team but a good PM is worth their weight in gold. If u want to chat about any of this I’d be happy to and if u want to run some names of PM’s, GC’s, wholesalers and so on by me I’m happy to share my thoughts on them if I know them. Good luck!

@Ben Koslof , Out of state investing can be a great idea if implemented correctly, as you already know. It sounds like you are on the right track. I have also been focusing on some of the Midwest markets but I focus mostly on syndications and larger multifamily assets. We can discuss further and exchange ideas if you are interested. 

Originally posted by @Ben Koslof :
Hi all! I have never invested in any properties but I have been thinking about doing so for some time. I have been doing a lot of research and decided that the best way to create passive cash flow is through owning rental properties. That is why I have decided to go the buy and hold route and embark on this journey once and for all...

I also have decided to invest out of state, as I am from the East coast and properties are very expensive in my own backyard. My focus is in blue-collar working class neighborhoods in B or C neighborhoods in cities such as Jacksonville, Austin or Indianapolis. I like Jacksonville because of its consistent job growth, Austin for its recent population boom and Indianapolis for its low prices and high ROI.

I also know that I would like to invest in single family homes renting anywhere from $500-$1000/month for homes costing anywhere from $30-65k including renovation costs. These are typically builders grade homes with 2-3 beds and 1-2 baths.

I am looking to start turnkey to dip my feet into a market, but eventually would like to get a team started in a targeted city. This would involve boots on the ground including realtors, contractors and property management. I believe real estate is a business that involves 20% working the numbers and 80% dealing with people. I know that the key to successful real estate investing is having great relationships with your investment partners.

So that is my story...I am glad to have found this community and look forward to speaking and listening to the many fellow investors on this site as I embark on this journey. Please do not hesitate to reach out to me to talk at anytime. I would love any advice or suggestions and welcome any contacts looking to connect with potential investors, especially those in target cities. I also just like discussing real estate and investing strategies in general, and look forward to sharing my experiences as I start my life as a real estate investor.

Thank you for taking the time to read my post and hope to hear from many of you soon!

Take care, Ben K. from Boston

 Welcome to the site Ben.

@Ben Koslof Hi and welcome to the BP forums and the world of REI! I have invested in two of the three markets you mention - JAX and Indy, and have an REI business partner who lives in the third, Austin. Austin is an expensive market now, and my partner has sold assets there to invest elsewhere. I largely agree with @Jeb Brilliant about prices and rent, except would say you need to go to at least $850 rent to get into B areas, and in JAX rents should be even higher.  Both JAX and Indy have grown much more competitive for deals, and until you establish yourself in those markets, as a new out of state investor you are going to be last in line or end up over paying for wholesale or other deals.  Good luck.

@Ben Koslof , @Larry F. is 100% right, $700 is to low. That's the minimum I'll even consider to look at any more. $850 is a good starting point. And PLEASE don't trust what a seller is telling you, they are selling meaning telling you what you need to hear to buy something. 

Check actual rents against sites like apartments.com or a PM, NOT RentoMeter in places where people say it's street to street. 

Thank you all for the great tips. Those are some great suggestions...I definitely welcome any knowledge you have regarding good property managers as well as good neighborhoods to invest in. I am also interested in finding a good agent that is in it for the long haul, because I am not just looking for one property, but to buy and grow a portfolio. I do not know anyone in the city and need boots on the ground and I can be a consistent buyer if the cash flow works.

Welcome to BP @Ben Koslof! Similar to you, I also invest in OOS homes, though not in any of the cities you listed but a couple others that you've likely heard about from BP. I also got my first couple properties from TK providers so would be happy to connect and answer any questions you might have about getting started!

Welcome to the site - I am from Boston as well and focused OOS. Let me know if you want to connect. Always looking to meet more people in Boston interested in REI

Phil l think we connected on FB recently. I've done rehab finance on 6 MA properties. My wife and I work with a rehabber here, sometimes 2 others . Presently mentored by Nick Aalrud AARealEstate.. A southern state Bank has offered me opportuity to see 5 REO props they have, increasing growth and high income rate with large national industy moving in. Agreement exclusive in August. Phone # MA 617-821- 5616

. Iv'e signed non disclosure agreement. Am looking for co investors. I can flip, own rent props.  Gve me a call. Tell me what U think. Interested ?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you