Investing in other states

10 Replies

Hello neighbors!

Im a newbie currently living in riverside ca. I'm excited about what I've researched so far, and am looking to start investing in the near future ( my goal is to obtain my first rental property by summer 2017).

Currently I don't have much capital so I was looking at other states to invest in where the barrier to entry is much lower. I'm looking for multi family houses in the 50-75k range.

Which markets do you all currently invest in and how did you go about setting up your team before getting started? (Do you invest in turn key rentals and if so what area some reputable turn key companies).

Right now I'm looking for property In Milwaukee but I'm open to other areas.

Thanks in advance!

Jennifer.

Hi @Account Closed

Hope you are doing well.

I live in Carlsbad, CA (not too far from you) and I invest in mid west in Lake County, IN market. 

I have not looked into Milwaukee market, but I would think it would be challenging to find a multi unit in $50-$75k price range in a decent area in any market. I could be completely wrong. I am basing this on investing experience in one market.

Are you looking to purchase cash or using financing?

Sharad

Originally posted by @Sharad M. :

Hi @Account Closed

Hope you are doing well.

I live in Carlsbad, CA (not too far from you) and I invest in mid west in Lake County, IN market. 

I have not looked into Milwaukee market, but I would think it would be challenging to find a multi unit in $50-$75k price range in a decent area in any market. I could be completely wrong. I am basing this on investing experience in one market.

Are you looking to purchase cash or using financing?

Sharad

 Hi @Nick Feliciano  thanks for the reference!

Hi @ Sharad M. 

What's your price point for your properties in  Indiana? Im looking to use financing. I'm planning on using equity from my home as a down payment. 15K -20K pulled out is all Im comfortable with doing at this point. 

Hi @Jennifer Smith

Wishing you well. Is it possible to buy a multi-family building with $50,000-$75,000? Might be worth it to look at foreclosures, that's what I did. For me, that's a couple of foreclosure properties in my area.

If I'm not mistaken, you can build a team right here. I see a lot of people connecting here. Join the real estate investing clubs too, I wish we had this kind of stuff when I started. My wife was partner and we worked great together but it would have been nice if we had more experienced "team" members.

I Googled the average home price in Milwaukee and it is $138,000. 

https://www.trulia.com/real_estate/Milwaukee-Wisco...

You might want to call an agent and ask them. 

Like I said, I invest in foreclosures, so I usually don't use other companies. 

Best of luck. 

Originally posted by @Jennifer Smith :
Originally posted by @Sharad M.:

Hi @Account Closed

Hope you are doing well.

I live in Carlsbad, CA (not too far from you) and I invest in mid west in Lake County, IN market. 

I have not looked into Milwaukee market, but I would think it would be challenging to find a multi unit in $50-$75k price range in a decent area in any market. I could be completely wrong. I am basing this on investing experience in one market.

Are you looking to purchase cash or using financing?

Sharad

 Hi @Nick Feliciano  thanks for the reference!

Hi @ Sharad M. 

What's your price point for your properties in  Indiana? Im looking to use financing. I'm planning on using equity from my home as a down payment. 15K -20K pulled out is all Im comfortable with doing at this point. 

 Price point for SFHs in today market is $75k for a basic 3 bed/1 bathroom house. If you are looking to use financing, let's say you start out with $20k and put 20% down, the maximum you can purchase is a $100k house. This is not taking into account any reserves, appraisals and other fees which will reduce the purchase price even lower.

Sharad's market will be much safer than buying 75k triplex in Milwaukee that's for darn sure.

those types of properties are IMHO only appropriate for locals like Brie Schmidt who work them and can be there in 90 minutes to take care of any issues.

if your sitting in the west coast you want to buy nicer stuff like Sharad has.. now this is just my opinion based on a few decades of investing in the space

Thanks @Craig Carmichael ig Carmichael for allowing me to add my two cents.  @Jennifer Smith the Milwaukee market is quite simple, follow the money...  you can purchase immediate rent producing assets from 20K on up!!  Keep in mind that typically the price point dictates a few things i.e.

1. The level of distress in a property.

2. Neighborhood/schools etc...

3. Type of tenant.

I own several properties in the Milwaukee market and my company is doing well.  I'd be happy to work with you if your considering investing in the Mill.  Thanks again @Craig Carmichael

Hi @Jennifer Smith   you definitely can find duplexes and triplexes in that price point in Milwaukee that are in relatively good condition, built solid originally as multi-families.  On the lower end of the price-point you would be paying cash as banks generally won't loan less than $50k.

I'm not sure of the details of how people actually invest from out of state, but I think you would need somebody knowledgeable, empowered to make decisions, and actively involved full-time on the ground, whether that is a good/ trust-worthy property manager or a business partner.  Even with my own property manager in Milwaukee 30 minutes from me, I've been actively on site as a project manager and decision maker with my new properties.

@Jennifer Smith  I agree with Troy ^^

Professional, local management makes all of those situations easier to deal with as they are trained for just that.  I believe that using a local expert as a partner leads to a lower barrier to entry and faster diversification because of the deals you can take advantage of.  There are definitely gems to be found and having a someone in the area to advocate / boots on the ground makes all the difference in these situations.  My team is out of South Bend IN and we mainly deal with NW Indiana.  Let me know if there is anything we can help you with!

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