Newbie looking to invest OOS

Newbie looking to invest OOS

New to Real Estate · NJ · Member since 2020 · 12 posts · 11 votes

Hi, Bigger Pockets!

My name is Luis and I am a nurse in northern NJ. I started out looking into stock market investing but soon realized you don't create a lot of cash flow unless you're doing at home day trading or buying large amounts of shares. I recently tried to launch a small business selling t-shirts but had to put it on hold due to the current pandemic. Trying to find another way to cash flow I did some research and discovered the world of REI. I've listened to a few BP podcasts and a couple of audiobooks. There is a lot of information to digest but I'm willing to learn. Mind you I'm doing this and juggling work, family, and my Bachelor's degree. My brain is ready to explode from all this input but I want to succeed and create a better life for my family. For now, I've been mainly researching OOS properties because I don't feel confident I'd be able to create a lot of cash flow here in NJ. I was looking towards Florida or Arizona as I hear those are some markets with potential but possibly highly saturated. Not sure if anyone has any other states I should set my sights on. The U.S. is big and I'm not sure where to start my search. Any advice would be greatly appreciated. I hope everyone is being safe and careful out there during these crazy times. This is something that will pass and we will be a lot stronger after it is over. If we can get through this we can get through anything. Please stay home if you are able to. Despite what the media says I've seen young healthy people's lives cut short because of this virus. Thank you and I looked forward to hearing from you all. Stay safe!

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Connor AndersonBusiness Member
Real Estate Agent · Grand Rapids, MI · Member since 2017 · 147 posts · 102 votes
6y

@luis pineda welcome to BP! Your first step should be to read Long Distance Real Estate Investing by David Greene. He spells out exactly what you need to do to invest in long distance. The book is also helpful for investors that are buying locally as well. Best of luck!

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  • Connor AndersonBusiness Member
    Real Estate Agent · Grand Rapids, MI · Member since 2017 · 147 posts · 102 votes
    6y

    @luis pineda welcome to BP! Your first step should be to read Long Distance Real Estate Investing by David Greene. He spells out exactly what you need to do to invest in long distance. The book is also helpful for investors that are buying locally as well. Best of luck!

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    6y

    @Luis Pineda

    Welcome to the BP family! Good to have you here! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best!

  • Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
    6y

    @Luis Pineda Aim for markets that are experiencing job growth and population growth. Also, look for markets with a diverse economy. As far as how to invest, it really comes down to your goals. Do you want to be passive or active?

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    6y

    Welcome aboard Luis!

  • New to Real Estate · NJ · Member since 2020 · 12 posts · 11 votes
    6y

    @Connor Anderson Thanks! I found it on audible and I will be downloading it tomorrow! 

    @Dmitriy Fomichenko Thank you! I'll be checking out those links and I'm already putting your tips into practice! 

    @Jonathan Oh Ok I'll do my research and see what I can found out there within the criteria that you've given me. As for active and passive investment, I'll probably go passive but its not set in stone just yet. I definitely can't do any buying and flipping if I'm doing the OOS thing just because my work and schedule won't allow me to travel enough to get out there and do any renovations. Most likely I'll have to buy and hold and find a good property manager which I know is another task in itself. Thanks for the advice!

    @Andrew Syrios Thank you! I feel welcomed already! I appreciate everyone's welcome and feedback!

  • Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    6y

    @Luis Pineda Great job finding this site. Keep up the good work :) I would recommend the KC market if you are looking to invest out of state. I help people from NY, NJ, MA, etc...so I know that people such as yourself can be successful out of state. My advice is to find a solid, secure, investment that doens't need a ton of work as your first investment. Otherwise, you could get killed on cost and regret every second of it. Hope this helps!

  • Real Estate Agent · Phoenix, AZ · Member since 2016 · 738 posts · 1k+ votes
    6y

    @Luis Pineda

    Here's a plug for Phoenix, Arizona that takes into consideration some of the criteria others mentioned above:

     Here are the four statistics you'll want to consider when researching prospective markets:

    1) Job Growth

    2) Population Growth

    3) Migration

    4) Housing Market

    And here are some relevant articles about Phoenix to save you some time:

    -- Phoenix leads US Counties in Job Growth, New Data Shows

    -- Phoenix leads the US in Population Growth, New Census Data Shows

    -- Phoenix is the #1 Migration Destination

    -- Phoenix is Expected to be Among the Top 5 Housing Markets in 2020

    I can practically guarantee none of the other markets you're considering are going to be as strong on all factors as the Phoenix metro area is. But perhaps pricing, location, etc. may sway you elsewhere.

  • New to Real Estate · Chino Hills CA · Member since 2019 · 95 posts · 24 votes
    6y

    Hello! I'm from Socal LA area, new to real estate too, actually on the same boat as you! 

    Looking to OOS in Jacksonville, Florida (mainly because my dad actually lives out there). I've been there a few times, and the properties out there are definitely a lot less compared here in Socal, a lot of opportunity for cash-flow and for BRRRR.

  • Investor · Jacksonville Beach, FL | NYC | Tamarindo Costa Rica · Member since 2014 · 182 posts · 130 votes
    6y

    Hi @Luis Pineda. I advise people starting out to pick a market where you can get there easily - you need to visit yourself to get familiar with the areas, the kinds of deals available, and arrange trips where you can attend REIA meetings where you can meet people on the ground. We were living in NYC when we did most of our investing and our first markets were in North Carolina and Florida, where we could get easily (we enjoy long road trips), and places we enjoyed visiting, since we ended up visiting many times.

    This is a great time to do your research and get your ducks in a row, as there certainly might be better deals to be had over the next months then there has been in the recent past!

  • Investor · Cincinnati, OH · Member since 2014 · 538 posts · 432 votes
    6y

    @Luis Pineda Welcome aboard, sir! You've come to the right place LOL. There's a wealth of information and resources here!

    As for investing OOS, you'll find that most of the Midwest is a solid bet. KC, Indy, Ohio, etc. Lower barrier of entry financially and you can still get a great property not in the slums. Property management is KEY, though. That can very easily, and very quickly, make or break you and your investment. Do your due diligence up front and you'll do very well.

    Best of luck to you! :)

  • New to Real Estate · NJ · Member since 2020 · 12 posts · 11 votes
    6y

    @Jean Santiago I see you are very much on the same boat as me! Make sure you don and doff that PPE properly! Yes, my mother-in-law lives in Naples, Fl which is an area I was interested in since I visited there many times. However, I do notice the properties are much more expensive compared to other parts of Florida. I'm sure it's because of the high-paid clientele that live in the area, but still much cheaper than here in NJ. The property taxes here can be a real deal-breaker. Thank you for reaching out and I hope you find what you are looking for. Be safe out there!

    @Caroline C. Unfortunately, Florida is probably the only market right now I'd be able to visit because I have somewhere I can stay while I look at properties. My family all live in NJ so being able to find something in another state that I can see will be challenging, but I get what you are saying. I will do my research in the meantime until this is all over. Maybe I'll get lucky on my first investment. Thank you for the advice! Stay safe! 

  • New to Real Estate · NJ · Member since 2020 · 12 posts · 11 votes
    6y

    @Alex Olson I am willing to keep my mind open. I'll look into KC, perhaps you may have a prospective client in the future. It's great you help others from my area that's pretty reassuring. I'll check out the area and reach out if I have any questions. Thank you and be safe! 

    @Wes Blackwell I was interested in the Arizona market. I wasn't sure if Phoenix was right for me because I'm not familiar with the area. I did look into the Scottsdale market because I heard good things, but Phoenix sounds pretty good. If I have any questions or thoughts I will message you. Thank you for the research material! Take care!

  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    6y

    Hi @Luis Pineda! I am a local in the Fort Myers/Naples area, would be happy to talk more about finding you a rental property down here outside of Naples to keep that price down, just shoot me a PM!

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Luis Pineda:

    Hi, Bigger Pockets!

    My name is Luis and I am a nurse in northern NJ. I started out looking into stock market investing but soon realized you don't create a lot of cash flow unless you're doing at home day trading or buying large amounts of shares. I recently tried to launch a small business selling t-shirts but had to put it on hold due to the current pandemic. Trying to find another way to cash flow I did some research and discovered the world of REI. I've listened to a few BP podcasts and a couple of audiobooks. There is a lot of information to digest but I'm willing to learn. Mind you I'm doing this and juggling work, family, and my Bachelor's degree. My brain is ready to explode from all this input but I want to succeed and create a better life for my family. For now, I've been mainly researching OOS properties because I don't feel confident I'd be able to create a lot of cash flow here in NJ. I was looking towards Florida or Arizona as I hear those are some markets with potential but possibly highly saturated. Not sure if anyone has any other states I should set my sights on. The U.S. is big and I'm not sure where to start my search. Any advice would be greatly appreciated. I hope everyone is being safe and careful out there during these crazy times. This is something that will pass and we will be a lot stronger after it is over. If we can get through this we can get through anything. Please stay home if you are able to. Despite what the media says I've seen young healthy people's lives cut short because of this virus. Thank you and I looked forward to hearing from you all. Stay safe!

     I would recommend checking out Columbus, Ohio

  • Investor · Jacksonville Beach, FL | NYC | Tamarindo Costa Rica · Member since 2014 · 182 posts · 130 votes
    6y

    @Luis Pineda be very careful investing in a market you don't intend to visit. Keep in mind that when you are spending thousands on a property, some travel expenses are a drop in the bucket, and in your head that should be part of your up-front costs. Also tax deductible if you buy. For a few years, our 'family vacations' were centered on driving to places we might invest, with time built in to doing research and looking at properties. Kill 2 birds with one stone! You can also get a lot done and get pretty far on a 3-4 day road trip and keep the costs minimal. 

  • Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    6y

    @Luis Pineda Thanks sir. yes happy to help!

  • Investor · New York City, NY · Member since 2016 · 155 posts · 105 votes
    6y

    @Luis Pineda Welcome!  New Jersey is actually a great market.  What types of properties are you looking for?  I know many investors who are doing well in NJ.

  • New to Real Estate · Chino Hills CA · Member since 2019 · 95 posts · 24 votes
    6y
    Originally posted by @Luis Pineda:

    @Jean Santiago I see you are very much on the same boat as me! Make sure you don and doff that PPE properly! Yes, my mother-in-law lives in Naples, Fl which is an area I was interested in since I visited there many times. However, I do notice the properties are much more expensive compared to other parts of Florida. I'm sure it's because of the high-paid clientele that live in the area, but still much cheaper than here in NJ. The property taxes here can be a real deal-breaker. Thank you for reaching out and I hope you find what you are looking for. Be safe out there!

    @Caroline C. Unfortunately, Florida is probably the only market right now I'd be able to visit because I have somewhere I can stay while I look at properties. My family all live in NJ so being able to find something in another state that I can see will be challenging, but I get what you are saying. I will do my research in the meantime until this is all over. Maybe I'll get lucky on my first investment. Thank you for the advice! Stay safe! 

     Yeah, donning those PPEs are important, only if we had enough to don! #ppeshortage! I hope you guys have enough there in NJ! LA really has a shortage right now unfortunately. 

    And samw goes to you too! I'll be following this thread to see what you find in Florida, stay safe at work! 

  • New to Real Estate · NJ · Member since 2020 · 12 posts · 11 votes
    6y

    @Jean Santiago #ppeshortage indeed! Unfortunately, we don't have much in the way of PPE either. They are rationing the N95 masks to one a day per person. We have to reuse the same one and put a surgical mask over it to keep it from getting contaminated. Yes, I'm currently looking at some properties in a couple of areas. I will try my best to put a follow-up to this post. Thank you and same to you!

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

    Welcome to the site @Luis Pineda! I would recommend checking out Columbus, OH!

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  • Rental Property Investor · Milltown, NJ · Member since 2014 · 131 posts · 130 votes
    6y

    @Luis Pineda I live in central jersey. I currently invest in Pennsylvania cause it is far enough were there aren't crazy prices, and crazy taxes but close enough were I can also keep and eye on it if necessary.

  • New to Real Estate · NJ · Member since 2020 · 12 posts · 11 votes
    6y

    @Rich Vogel I haven't thought about PA. That is actually a good idea for someone such as myself. We actually aren't too far from each other. I'll have to do my research. Thank you for the tip and idea!

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