I currently in Norcal where housing prices are very high. I want to start investing and purchase my first property out of state (I am thinking Ohio). I have done my research on safe, cash flow friendly neighborhoods I want, but after reaching out to an agent there - they recommended against investing out of state. I have done my research, have been listening to podcasts, read a few BP books, including "Long Distance Real Estate Investing" and am very interested in doing this. I want to start getting my core four team together.
Do you have advice on how to invest out of state successfully? How should I get started? Any advice (for or against it)? Thanks!
BP is well represented by people investing out of state, over 90% of our clients are out of state or out of country. It is a bit trickier since you can't necessarily "see" things as they are progressing but if you find the right team this becomes a moot issues. While management and contractors are key positions, most people start with finding the right agent. An agent that has experience with investment property, has a solid understanding of rental rates and can refer you to management and contractors is the key to success.
Best of luck with your first purchase. I have a bunch of real estate investors in eastern Ohio. I can't help you on where to buy, but can tell you what to look for in the properties you're thinking of purchasing from an insurance standpoint. Sending you a DM now for your own knowledge.
I recommend the neighborhoods that are transiting from C to B. The highly appreciating neighborhoods with good rental rates!
This seems to be places like Hungarian Village, Merion Village, Reeb-Hosak, Vasor Village, Southern Orchards, Driving Park, Franklinton, North Linden, Old Oaks.
I bought a place in Hungarian Village, in less then 8 months it more than doubled in value (with a little work) and is net cash flowing more then $1,800/month.
@Steven Wilson Can you define C to B...based on what?
@Leila Jones As long as you have solid systems in place (and are working closely with a team that has solid systems in place) you will be perfectly fine. There are certainly some things to be aware of, but it's really just a matter of education about where you are investing and having transparent information...out-of-state investing is no more risky than investing in your own state if you have a reliable and experienced team.
I advise ensuring you have a great Property mgr ahead of time. Also check the taxes and insurance rates for that area. I try to stay away from strong weather areas. It can really cost a lot in the end on insurance. I am from Ca and purchased in Az. Both north and central. The one I purchased yrs ago has appreciated very well but the rents are not as high there. The rents are better in central Az. The taxes and insur is low in comparison to many other states I have researched.
I would advise you team up with another investor in an area you are interested in. Make sure they have enough skin in the game though.