The USA is a really big place...

[Marie Holloway]

Hi friends, long-distance real estate investing newby here (I live near Denver and prices are just insane!) Can I ask how you went about choosing your investment state/area/market? I don't have contacts in other states— at least none familiar with real estate. I'm still beginning— considering rent and hold, fix and flip, BRRRR... whatever makes the most sense. I have about $250k ready to invest. I understand there are good opportunities in ANY market... I just don't know where to start. I know what specifics I'll need to look at in each market I consider... but I don't know how to even arrive at the "considering" stage without a starting point. Any advice is appreciated greatly! Thank you so much!

[Jason Wray]

Marie,

Now is great time to start looking because the housing market is showing signs of relaxing in price points. Prices may start to relax in a lot of areas due to several reasons but mostly COVID related. One thing I would suggest is keep the majority of that $250K nestled in your savings/portfolio growing interest. Borrower money from the banks while rates are still low enough to maintain a positive ROI. No matter where you live look to amenity states like FL, GA, AL, LA, TX, TN for those STR/AIRBNB properties. You can always buy as a second home in another state and keep the down payment low around 10%. That allows you a lower down payment but you can still convert the property to a STR or permanent rental down the road.

Prior to making any moves learn the area and become familiar with the rent schedules. Reach out and network with local investors and realtors to get opinions and ask questions. I talk to a lot of buyers daily who research home values and inventory but fail to look at other important factors. Find out if the property is in a flood zone, what are the taxes compared to other adjacent neighborhoods, are there HOA, or other monthly or annual fee's. Check on deed restrictions and zoning for future additions or improvements.