Starting off as an Out-of -State Investor

Starting off as an Out-of -State Investor

Rental Property Investor · Orange County, CA · Member since 2017 · 4 posts · 2 votes

Hello BiggerPockets community!

It's taken me a while to make my first post on this forum, but we're finally taking the next step! I love the utility and sense of community this website provides, it's really enlightened and exposed me to so much more than I expected. As for myself, I work full time as a transportation analyst in Orange County, CA. This is a job I am very passionate about and enjoy, but is also flexible and allows me to allocate time toward my other goals, like investing in real estate.

My countless hours of real estate education and research to this point have led me to the Kansas City market, where I would like to obtain a SFR rental. My thought process is to start by investing in out-of-state markets with a focus on cash flow, given the high barrier of entry in California. As time goes on and I've built up my portfolio and equity, then I would like to start investing closer to home. Has anyone else adopted this approach for similar situations or markets?

I'm working to make my first transaction in the forthcoming weeks/months, so naturally a little nervous, but also enthused and excited!

Sam

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  • Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
    7y

    @Sam S. congratulations on taking the next step! Which markets are you looking to evaluate?

  • Rental Property Investor · Orange County, CA · Member since 2017 · 4 posts · 2 votes
    7y

    @Logan Freeman thank you, Logan! The neighborhoods north of the river around North Kansas City have been intriguing to me, such as Gladstone, Northmoor, and Avondale. I've also been interested in South Kansas City and the areas around Longview Lake and the 470/435 junction. The numbers seem to be positive in both these areas I am looking at while still being at a conservative price point. Any thoughts?

  • Member since 2019 · 1 post · 0 votes
    7y

    Hey I live in KC, haven’t started investing yet but I’m very interested. If I had the money right now I would focus on NKC (North Kansas City) area. Those areas include Gladstone, NKC, Liberty, Pleasant Valley, and Parkville. There is a lot of economic development going on in NKC right now. There is a lot of value to be found in Gladstone also. Liberty and Parkville might be harder, but also provide the some of the best school districts in KC. There is a large Cerner multi billion dollar complex going in (1/2 way complete) at the 435/470 area your speaking of. My concern there would be tenant quality, and the schools generally aren’t as good unless you are in the Lees Summit, Blue Springs area.

  • Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
    7y

    @Sam S. what asset class? SFR - you need to speak to Brock Thomas if looking in the Northland.

  • Rental Property Investor · Orange County, CA · Member since 2017 · 4 posts · 2 votes
    7y

    @Alex Gray thanks for sharing, Alex. Those are some great insights! The northern neighborhoods you mentioned are all good areas that I've seen lots of potential for, and probably the area I would like to focus in on. Glad to see another prospective investor at a similar stage in the journey!

    @Logan Freeman Yes, pretty much focused on SFR for the time being. The referral is appreciated, I'll look to connect with Brock. Is there an area you focus in?

  • Real Estate Broker · Phoenix, AZ · Member since 2013 · 749 posts · 399 votes
    7y

    @Sam S. - 100% agree with Alex. We have been doing this full time in the Northland for about 2.5 years. We will flip 35 houses this year North of the river and have 5 rentals up here.  I love the deals, the schools, and future growth of this area. Please reach out if you have any questions. 

  • Investor · La Mirada, CA · Member since 2017 · 54 posts · 11 votes
    4y

    Came across this post and wanted to resurrect the discussion on the current status of these neighborhoods . . . I am also located in Southern California . . . I am getting ready to close on a 6plex property in Northmoor, MO and have found it to be a pretty good area. Looks like this post was originally about SFR . . . but does anyone have anything to add about multifamily as I would like to continue to consider and hopefully aquire additional multifamily in this area of NKC . . .

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    4y

    Welcome aboard Sam!

  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    4y

    @Sam S.

    Welcome to the BP!

    This is a great forum with very knowledgeable members that will help to guide you in the right direction.

    If you are looking to connect with other members near you, or want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users


    I really like the alerts feature that can quickly guide you to current topics that might interest you: http://www.biggerpockets.com/alerts

  • I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    4y

    Hey Sam, welcome to the party. Good luck on everything.

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