New Investor from New Haven, CT

[Jeff Lamothe]

Hello BiggerPockets Family,

Jeff from New Haven, Connecticut and picking back up on my REI journey after being on hiatus for several years. Began listening to many YouTube videos on real estate investing, including Bigger Pockets podcasts and became energized after hearing of all of the great stories about Real Estate transforming lives.

My focus is to acquire residential multifamily properties that provides positive cash flow (after expenses).  Target areas include New Haven, Meriden, and West Haven, CT.  

I also have an interest in out of state investing in the Cleveland, Ohio or Philadelphia, PA area due to lower purchase prices.    Would like to meet with members who has been successful in those areas.   

Thank You

[James Wise]

Originally posted by @Jeff Lamothe:

Hello BiggerPockets Family,

Jeff from New Haven, Connecticut and picking back up on my REI journey after being on hiatus for several years. Began listening to many YouTube videos on real estate investing, including Bigger Pockets podcasts and became energized after hearing of all of the great stories about Real Estate transforming lives.

My focus is to acquire residential multifamily properties that provides positive cash flow (after expenses).  Target areas include New Haven, Meriden, and West Haven, CT.  

I also have an interest in out of state investing in the Cleveland, Ohio or Philadelphia, PA area due to lower purchase prices.    Would like to meet with members who has been successful in those areas.   

Thank You

 Welcome to the site Jeff. Since Cleveland's one of the cities on your radar you'll want to check out The Ultimate Guide to Grading Cleveland Neighborhoods. Tons of good info on The land in there. Beyond that something to note is that there are tons of turnkey markets out there. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

• Cleveland, Ohio
• Dayton, Ohio
• Toledo, Ohio
• Youngstown, Ohio
• Cincinnati, Ohio
• Memphis, Tennessee
• Birmingham, Alabama
• Kansas City, Missouri
• Saint Louis, Missouri
• Indianapolis, Indiana
• Detroit, Michigan
• Erie, Pennsylvania
• Louisville, Kentucky
• Milwaukee, Wisconsin
• Jackson, Mississippi

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

• 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.
• Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
• 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.