Hi everyone! My name is Kyle and I have been a BiggerPockets Pro member since late 2017, and have finally developed the courage to put myself out there after a lot of research and listening to podcasts earlier this year. I made a commitment to myself that in 2018, I would buy at least one investment property, whether solo or with a partner. I live in Atlanta, GA and am looking to network and meet fellow Real Estate Investors and professionals in the area, and am curious to hear some different opinions on this topic that has had me questioning how I want to start for quite some time. The question is - is it downright foolish to start your real estate investment journey in a different state than where you live? I ask because I have lived in the Southeast for almost ten years, but am originally from the Columbus, Ohio area and have a great interest in investing in multifamily properties in the Midwest (namely Cincinnati, Columbus, Cleveland, Indianapolis). It seems that in my backyard, there are less options for multifamily, although I have not yet deployed any creative strategy to this in Atlanta either. I have read @David Greene 's book on Long Distance Real Estate Investing and it is a phenomenal read, but would appreciate anyone who has experience in this area providing some of their feedback as well. I am here to learn and hopefully trade some best practices & strategies so everyone can win! I look forward to meeting everyone in the forums!
is it downright foolish to start your real estate investment journey in a different state than where you live?
No but you need to understand that it increases your risk and your costs. The best deals tend to go to the investors who know the market the best. So Columbus may be a better option for you than other Midwest cities.
Thanks so much, Ned! I appreciate you taking the time out to respond. Do you invest all over, or mainly stick to your area?
@Kyle Neff I only invest in Baltimore city for the same reason I mentioned. It is the area I know the best.
Welcome to Bigger Pockets! I am a native of Columbus Ohio. I have invested in properties for over 20 years in Columbus. The market has changed from time to time as you know. Feel free to PM with any questions you may have about the area and investing. To invest outside of your home town can have its risks. But all investing does. Building a local team is important. Always happy to assist.
Welcome to the team Kyle! I can't wait to hear of the great stories you will have in your real estate career.
Hey Kyle! I am a seasoned realtor and real estate student here in Atlanta. I am also just breaking into the investment side of the business. If you ever want to grab some coffee I am always down to talk real estate!
Kyle, it isn't crazy to invest out of your area but as many others have mentioned, it is harder for a variety of reasons. That being said...and certainly I am biased...why not buy in Atlanta? I was speaking with a multi-billion $ institutional investor's COO several weeks ago and they said when they went to Wall Street to raise money, every banker wanted to know how much of their portfolio was based in Atlanta...meaning, Wall Street knows that Atlanta is a very stable and quality location to own in and while return may be lower than other higher risk areas, it is a quality area and top of the bell curve in most return and risk respects. Multi-family is a more difficult buy especially for a newer investor. If you focused on acquiring SFR's initially and then step up to small MFR's after you have worked out the kinks, that would be likely easier and safer. Happy to talk further if you like when you have time.
Welcome to BP and congrats on your first posts! I haven't invested too far outside of my area before, but I certainly am open to it. In fact, I think the Atlanta area would probably be on my list of markets to consider, so perhaps you'll do well starting in your area.
Thanks Justin! I love your area too, was out there for the 4th of July last year and got some good hikes in. Let's keep the dialogue open and if there's anything I can do for you, please let me know!
Thanks so much, David! I love Columbus and I think the city has started to do a better job of maintaining young professionals after graduating from OSU. I'm going to send you a PM and a connection request and look forward to keeping the dialogue going.
Awesome to meet you virtually Brian! Would love to sit down in person sometime soon. I will send you a PM and we can set something up.
Hi Greg - I appreciate all the insight! I agree, investing here in my backyard is ideal, especially for my first few times because I want to be able to get intimate with the end-to-end process and ideally be close enough to drive to my properties within a short time. That being said, I am open to investing in multiple markets and deploying various strategies. I will send you a PM as I am interested to meet with you and keep the conversation going.
You're welcome! Glad you got to enjoy to great outdoors while you were here.
Will do, you let me know if I can help as well.
Hey Kyle. I also am trying to purchase my first small multi family in 2018. As far as investing out of state, I cant really say because I never have. But my basic understanding is if you have a solid team and the numbers work you should be fine. I currently live in Columbus and am looking to start my portfolio here and may branch out in a few years. Right now my partner and I are building our team and putting in some time in the streets learning neighborhoods, driving for dollars and networking with anyone we can get in touch with. Feel free to send me a PM and we can chat more or get on a call. Side note, @David Greene 's book on long distance investing in next in the Audible queue and I am looking forward to it! Cheers!
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