Hello BP folks. I've stabilized my house hack in Los Angeles, which is cash flowing decently and now am looking at OOS markets including but not limited to St Louis, Tulsa, Indianapolis, and Chatanooga. My goal is cash flow and grow. Looking at 2-4 unit properties, but ideally 5-10 units. I know it's an VERY hot market right now but might as well start studying and see what I can get.
If you are an expert in any of these markets (realtor, investor, property manager, broker) or think that I have missed the mark and should invest in a different market, please comment on why or why not now is a good time to buy in your area/deal breakdowns on properties you own/or general investor-minded outlooks. Would love to hear your opinion.
There's many challenges with OOS investing as you may guess. I think BP has a book on OOS, buy it. How to choose the market? Lots will advise here. But first you need a business model; Please go to my BP profile, 1st paragraph, read the file; how to buy a bullet proof portfolio. I hope it will keep you frrom the serious mistake of buying cheap houses in areas you don't realize are too tough to manage,,,, even if you where local but certainly not remotely or even with local PMs. Cheap != a good deal.
Please spend time educating yourself on investing, landlording, tenant screening, rehabbing, managing contractors, lease law, eviction law etc.
Read the great book; Landlording on Autopilot. Its great.
Hey Jonathan, I'm in the Indianapolis market here and we manage a lot of properties here. Our focus in on SFH and smaller multi-family units. Happy to share some content with you if you want to DM me.
@Jonathan Taylor How did you make your final market selection? Always curious to see what other folks are seeing out there
@Curt Smith First off, thank you for your reply. A bit more context is Im experienced landlord in LA as Ive gone through the whole gamut of check boxes with this property (studs reno, relocating tenants, managing property, a second reno, lease renewals, emergency repairs, etc) So I have that to draw from, Ive also read the books touted on this site (OOS investing, landlording on autopilot) but as we all know, there is a gap between what the books say and what actually happens. Really curious to see what expereinced OOS investors have to say.
Nice breakdown on your profile. Its exactly how I run my rental in LA, I built for the tenant and have had very little issues now that I have that honed in.
@Brandon Sturgill I havent made my final market selection yet. Gathering as much info as I can to see where I can get the most realistic return without the pitfalls or headaches. Lets see how that goes. How is your market for cashflow and stability?
Chatanooga is a great market that a lot of people are not talking about!
@Jonathan Taylor It's a lot of up-front work, I know...lots of market research. I look at cash flow a couple of ways...if you're buying with cash, the sky is the limit...if you are using leverage, it's just math. Honestly, my first approach is to push every investor to learn to source off-market deals...create your own market. And create the cash flow you want....
And the irony of it all is that most investors still have a W2 job that covers living expenses...so, why do you need the cash flow now anyway?...defer and accelerate debt paydown...take the equity when you need it. I'd rather see folks get in the game than get burned out by not getting the exact numbers that are in their deal analyzer...
@Lane Kawaoka what indicators about Chatanooga are you seeing? Ive heard similar but have not done my research on that market yet.
@Brandon Sturgill Id love to connect on your market and hear your thoughts. I agree its a lot of research but knowledge is power and reduces the risk when going OOS. Ill Dm you for details.
Hey there! I’m a Realtor and flipper in the Chattanooga market right now. Just from my experience it’s a great market even though inventory is super low.Lots of deals still getting done. @David Grabiner is an investor in the area that would possibly be a great resource for you to reach out to he was on the podcast not to long ago. I’m also happy to help in anyway I can. Feel free to message me if you want to chat. Good luck!
@Jonathan Taylor Hey Jonathan, I’m a property manager in the Chattanooga market and I would love to help answer and specific questions you have. Feel free to shoot me a PM!
No metrics just experience. We bought 1000 units in Huntsville starting in 2018 before it started to get popular.
@Lane Kawaoka Hey from Huntsville, and you def bought at a good time. 2018 are the days! But Huntsville is an exploding market and what people don't realize is that we are about to start seeing "the drive" where people moving from OOS are willing to drive 1+ hr. to work, so being well versed in your tri county areas will benefit you well.
I own in Madison, work in Huntsville and eventually plan on owning in Huntsville and Surrounding areas, like limestone, harvest, Meridianville, hazel green, Owens cross roads, toney, etc. I am excited to see this growth!
@Jonathan Taylor If you ever get interested in Huntsville, AL-
which is almost 2 hrs- little less- from Chattanooga, Please reach out! Ive lived here very long and was a Native SOCAL girl
that uprooted to the south. I have stayed ever since!!
@Cheyenne Nafe I have not looked into Huntsville but what success have you found there and are there deals to be had now?
@Jonathan Taylor Yes! There are still deals to be had. There are a lot of different pockets of investors and investor friendly realtors- However, because it is a tight knit circle of investors. Low property taxes, low cost of living, all zips have high rate of appreciation and there is a mass of people coming ASAP to live here due t the Space Force Command, Facebook Data Center, Redstone Arsenal, and the FBI being headquartered here and employing many new people. Its def being flocked to, but don't let that steer you away from cashing in on the prices now. You can still get a SFH deal for under 30k. which markets have you narrowed it down to?
@Cheyenne Nafe that is valuable info. Thank you. How many rentals do you own in Huntsville?
Im narrowing down to Chatanooga, Columbus, St Louis and now Huntsville. Price points are the key as I want to buy and hold some rentals for 3-5 years and move up to 5+ as I grow. .
@Jonathan Taylor PMing you!
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