New Member - Exploring Out-of-State Rental Opportunities (CA investor)

[Christopher Rubio]

Hello Everyone,

I am new to BiggerPockets and excited to connect with like-minded investors. I am based in California but looking to invest in out-of-state rental properties to take advantage of better cash flow and more favorable price-to-rent ratios.

Right now, I am particularly interested in :

Markets with strong demand for BRRRR opportunities

Properties under 80k-125K (single family or small multi-family)

Areas with steady job growth and landlord-friendly regulations

My background

• I am a military veteran. I have also been in the federal sector for nearly 15 years and am now wanting to build a portfolio for long-term (supplemental) income and early retirement.

• I have research in various area such as Memphis, Cleveland, St. Louis and open to other suggestions

What I am hoping to learn from this group:

• How you have approached team building from a distance (agents, property managers, contractors, etc.)

• Mistakes to avoid as a new out of state investor

• Recommend neighborhoods or cities you have had success with

Overall, I am here to learn, share my journey and build relationships that lead to win-win deals. I hope one day I will be on the other end of a similar post like this providing new investors my knowledge and insight in real estate investing. Looking forward to connecting with you all!!

Chris R

[Christopher Rubio]

Quote from @Jason Wray:

Chris,

Your criteria matches about 80% of my investors who live in states like CA, NY, TX, AZ, CT and NJ. Most of these states have extremely high price points, taxes, and in a few a lack of inventory. The top (3) states that always stand out and match your price point, have steady growth, and very strong ARV potential would be Indiana, Ohio, and Florida.

I just closed on a property in Indianapolis fairly close to one of the Universities and it was a complete renovation. Purchased for $70K put in little over $40K in renovations and in 6 month the appraisal came in at $240K on a single family. It opened up an opportunity for a cash out refinance to pull out rehab costs and enough for another down payment on another REI.

The best way to build a team for your Network is here through bigger pockets. I found great agents, GC's, Builders, wholesalers, and more in the forums or by asking seasoned people. I have over 20 year in both the REI and finance side of things so if you ever have any questions or need any tips or neighborhoods to choose from let me know! Always happy to help other BP members.

 Hi Jason,

Thanks for the detailed response and for sharing that example - those numbers on your Indianapolis deal are impressive.  Indiana, Ohio and Florida definitely sounds ike they're worth a closer look for my criteria.  One of my biggest hesitations right now is building a reliable team out of state - especially since I want to make sure I have trustworthy people on the ground before jumping in.  I am also open to exploring small Multi-family properties if they make sense for the market.  I will keep you contact info handy, and I may reach out with questions as I narrow down markets and start figuring out who I need on my team.  Appreciate you offering to help!

Christopher