Looking into OOS multi family properties

Looking into OOS multi family properties

Rental Property Investor · Foster City, CA · Member since 2019 · 24 posts · 35 votes

My husband and I purchased our first investment property in 2011 in Fairfield, CA.  We bought a single family house for $169,100. It is now worth ~$400,000.  We are renting for $1,795 and bring in about $200 cash flow each month.  

We put our investing on hold while our three kids started applying for college.  Our oldest just graduated in June and our twins are juniors.

During our annual new year's eve yearly planning, we decided the time is right to get back into investing.  We are looking at small MF properties.  We are researching where to focus our investments. We have been looking at approximately 20 metro areas with solid job and population growth.  Now we just have to narrow it down the right location. :)

Any recommendations would be appreciated.  Looking forward to discussing and learning from all of you.

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Rental Property Investor · Indianapolis, IN · Member since 2017 · 96 posts · 140 votes
6y

*Any realtor from Columbus beating a dead horse* 

"You should look into Columbus!" 

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  • DJ DawsonBusiness Member
    Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes
    6y

    @Anne Marie Kodama Hey Anne! 

    Congrats on your BIG win on your first investment property. I would suggest looking into your cash on cash return at this point as a $200 a month cash flow while sitting on nearly 220k+ of equity would be (in my opinion) not the best use of your equity position. 

    Now everybody situation is different but I think you can utilize a HELOC to pull at your equity to get into another investment vehicle rather than using the cash on hand. First comes a PLAN, then ACTION!

    Let me know if theres any way I can be of help :)

  • Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
    6y

    Hi Anne,

    You should look into Columbus OH! 

    We're seeing a lot of primary markets like LA and NY look into our secondary market. 

    You can hit the 1% rule here and see handsome cashflows. 

    Columbus is seeing both great numbers for job and population growth. And maybe even a further differentiating factor is Ohio State University. OSU has the 4th most undergraduates in the nation and helps our great city grow with young college-educated individuals... looking to rent! 

    If you want to discuss more would be happy to hop on a phone call with you. 

    Best and happy investing,

  • Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Hi @Anne Marie Kodama, I would have to agree with @Austin Steed, Columbus, OH is a great place to consider! 

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Anne Marie Kodama You should look into Columbus, Ohio.

  • Rental Property Investor · Foster City, CA · Member since 2019 · 24 posts · 35 votes
    6y

      @DJ Dawson We are planning on utilizing a HELOC to take advantage of the equity in the property for our down payment(s).

    @Austin Steed & @Zeke Liston Columbus is one of the markets we are looking at.   

  • Member since 2019 · 89 posts · 64 votes
    6y

    Just following along to see where you might ultimately decide on investing.  I'm in a similar situation.

    Columbus, Tampa area, Kansas City, Austin suburbs have all been recommended to me.

  • Rental Property Investor · Fremont, CA · Member since 2017 · 125 posts · 75 votes
    6y

    Your main drivers will be population growth with a diversified job market that's growing along. Places like Austin, Dallas Fort-Worth, Indianapolis, etc. are all areas to consider. 

  • Austin · Member since 2015 · 149 posts · 80 votes
    6y
    Originally posted by @Kevin Chan:

    Just following along to see where you might ultimately decide on investing.  I'm in a similar situation.

    Columbus, Tampa area, Kansas City, Austin suburbs have all been recommended to me.

     Curious which Austin suburbs? I haven't found much here locally that gets close to 1% rule but hopefully I'm missing something!

  • Rental Property Investor · Foster City, CA · Member since 2019 · 24 posts · 35 votes
    6y

    @Kevin Chan and @Tony Lin

    I am strongly leaning towards Columbus at this time.  Need to get a team together.

  • Member since 2019 · 89 posts · 64 votes
    6y
    Originally posted by @Kalen Jordan:

     Curious which Austin suburbs? I haven't found much here locally that gets close to 1% rule but hopefully I'm missing something!

    Around Austin, these were recommended to me by @Ryan Kelly: east Round Rock, Pflugerville, Manor, Del Valle, Buda and Kyle

    When I was briefly looking, it wasn't quite 1%, but maybe you'll find something there.

  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    @Kalen Jordan The 1% rule doesn’t work as a metric in the Austin market as the appreciation is too strong. Most zip codes in the area went up 8-14% in 2019. You also can’t buy turn key here. Investors should know Austin is a great market, yet will take some patience and creativity to land the right deal.

    Ryan Kelly Group - Keller Williams5110 Reviews
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Anne Marie Kodama Congratulations on leaning towards Columbus! Let me know if you need any help building that team.

  • Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    I'm not sure if OKC is on your list or not, but if so then it's worth noting that the market here favors SFH rentals for the most part. You can hit at least 1% all day with a C class rental on the SFH side, but the multifamily space is a much more competitive.

    The inventory is extremely limited on multifamily properties, so if something comes up on the MLS that will hit the 1% rule it's usually gone within a few hours. ESPECIALLY if it can be sold to an owner occupant.

    Best of luck on choosing your market! There are a lot of great markets that make a lot of sense for out of state investing. You just have to find one that is the best fit for you. :) 

  • Member since 2018 · 43 posts · 15 votes
    6y

    Anne: did you find any good turn key company servicing Columbus ohio? 

    @Austin Steed are you / company a turn key company? I am interested to see potentials multi family investment in Columbus OH 

  • Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
    6y

    @Tim Siocheng We are not a Turn key Company. More along the lines of Full Service. 

    We help clients find deals and rehab those deals with our diverse group of local contractors. 

    You can find turn key properties on market many times in Columbus. 

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Tim Siocheng There are not too many turn key companies here in Columbus, Ohio due to our high appreciation. A lot of OOS investors have had success working with a Realtor to take down properties that require little to no rehab and hiring a management company.

  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    6y

    @Anne Marie Kodama If you're goal is cash flow, I would highly recommend Indianapolis and Kansas City. However, if you want MF, I would stick with KC over Indy. Most of the MF in Indianapolis is in old, rough neighborhoods that don't perform well. Like any market, both Indy and KC have good areas and bad so make sure you know the neighborhoods well and understand the class of properties in the neighborhoods. 

  • Rental Property Investor · Foster City, CA · Member since 2019 · 24 posts · 35 votes
    6y

    @Mike D'Arrigo I have looked at both Indy and KC.  However, I am going to focus on Columbus for now as it seems to check off the items on my list.  I am sure I will be expanding into other markets in the future.

  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    6y
    Originally posted by @Anne Marie Kodama:

    @Mike D'Arrigo I have looked at both Indy and KC.  However, I am going to focus on Columbus for now as it seems to check off the items on my list.  I am sure I will be expanding into other markets in the future.

    Anne Marie, Columbus is a good market too--strong economic and demographic fundamentals.  

  • San Ramon, CA · Member since 2017 · 78 posts · 97 votes
    6y

    @Anne Marie Kodama if focusing on Columbus drop me a line and happy to grab a coffee and exchange some notes.  I am Bay Area based with a growing portfolio in Columbus has been a great market for us.

  • Rental Property Investor · Indianapolis, IN · Member since 2017 · 96 posts · 140 votes
    6y

    *Any realtor from Columbus beating a dead horse* 

    "You should look into Columbus!" 

  • Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Hi @Zach Hoereth, you should look into Columbus! 

  • Investor · New York, NY · Member since 2015 · 26 posts · 12 votes
    6y

    @Zeke Liston, @Austin Steed, @Remington Lyman, how does the eviction process work in OH (i.e., landlord or tenant friendly)?  What do you see at as the political risks?  I saw that Cleveland just passed a bill giving tenant's the right to an attorney during eviction proceedings.  

  • Rental Property Investor · Foster City, CA · Member since 2019 · 24 posts · 35 votes
    6y

    @Art Mimnaugh It is nice to hear you are doing well in Columbus.  

    I lived in San Ramon from 1992 - 1995 until I moved to the peninsula for work.  I really liked San Ramon, but it has grown so much!  

  • Real Estate Broker · Columbus, OH · Member since 2019 · 119 posts · 151 votes
    6y

    @Horton M. Columbus is still very landlord-friendly when it comes to evictions. There have been small movements to shift this but we haven't seen the ball move much. Even if tenants are given more leniency, I still see Columbus continuing to be a very favorable market for landlords. 

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