Best cities for long distance real estate?

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Best cities for long distance real estate?

Rachel Cutler
New to Real Estate · New York City NY, United States · Member since 2020 · 18 posts · 15 votes

I am reading David's Long Distance real estate book, watching webinars, listening to podcasts, etc. and am open to investing ANYWHERE with about $20K cash. I want to start analyzing properties, but I don't know where to start looking.  So my question is how do I pare down the search...there are too many options!  What steps should I be following next?

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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
6y

With about $20k you can afford to buy a $70,000 property to account for the down payment and closing cost.  There are several markets where you can find good rentals: Memphis, Kansas City, Cleveland, Birmingham, and others.

If you are looking for turnkey you might research the operators in those markets. If you are looking to hire a Realtor, get with one of the BP Premium listed realtors for those markets. BP has a list of them as a realtor with knowledge of the rental market will be important.

Good luck! 

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    6y

    With about $20k you can afford to buy a $70,000 property to account for the down payment and closing cost.  There are several markets where you can find good rentals: Memphis, Kansas City, Cleveland, Birmingham, and others.

    If you are looking for turnkey you might research the operators in those markets. If you are looking to hire a Realtor, get with one of the BP Premium listed realtors for those markets. BP has a list of them as a realtor with knowledge of the rental market will be important.

    Good luck! 

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
    7Reply
  • Jacob Repreza
    Real Estate Agent · Orange County, CA · Member since 2016 · 207 posts · 111 votes
    6y

    Hello @Rachel Cutler! There's a dozens and dozens of possible rental markets so the easiest way is always to see if you have any friends or family or any sort of connection to one of these rental markets so you have some familiarity. If you don't, then you can look up some states and laws like tenants rights, appreciation, rental rates etc etc but you're going to find several that find your criteria. At some point you will just have to pick one that interests you. There's no perfect market out there. Look for your price point and choose somewhere you wouldn't mind visiting because you will have to take a couple trips a year. Hope this helps! 

    3Reply
  • Rachel Cutler
    OP
    New to Real Estate · New York City NY, United States · Member since 2020 · 18 posts · 15 votes
    6y

    Thanks, Jacob.  I really have no desire to visit the property and would want to have people in place to take care of all of the in-person stuff.  I don't want to pick somewhere based on my subjective thoughts about the place.  I am trying to find some more objective approaches to narrowing down a location so that I can start the analysis process you mention.

    2Reply
  • Rachel Cutler
    OP
    New to Real Estate · New York City NY, United States · Member since 2020 · 18 posts · 15 votes
    6y

    Thank you @Curt Davis, this is helpful.  Memphis and Birmingham made my shortlist based on google's response to my question.  I'm curious how you came up with them and/or how to find more places like them.

    0Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    6y
    I have worked with a lot of investors who buy out of state and the markets I listed were ones that they would tell me they were also looking at. 
    Curt Davis - KAIZEN Realty538 Reviews
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    2Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    6y

    @Rachel Cutler Similar to what @Jacob Repreza said regarding friends and family - you can also look at a city you have visited that you liked or a city you wanted to visit or a city that friends and family have talked highly about. Then, look to trusted real estate agents in those cities and find one you really connect with. That will be your city and that agent will be your boots on the ground. KC is a good market - $20k may be a bit tough some times but the right agent (like me and my team :) ) can really help you out. 

    2Reply
  • Rachel Cutler
    OP
    New to Real Estate · New York City NY, United States · Member since 2020 · 18 posts · 15 votes
    6y

    Thanks, @Alex Olson.  I've lived and traveled most of the country.  The places I would want to live and/or enjoyed the most are NOT the places that I can afford to enter the market on, in general.  Therefore, I am opening myself to places like KC, that I have driven through and not given a second thought about, but might meet my needs.  

    1Reply
  • Brian Tunnell
    Rental Property Investor · Birmingham, AL · Member since 2019 · 76 posts · 43 votes
    6y

    @Rachel Cutler, here in Birmingham we hear the same as @Curt Davis mentioned. Birmingham and Memphis have LOTS of good opportunities with low barriers to entry and high potential rates of return. If you decide to look into Birmingham, please don't hesitate to reach out. Good luck in this adventure! :-)

    2Reply
  • Jacob Repreza
    Real Estate Agent · Orange County, CA · Member since 2016 · 207 posts · 111 votes
    6y

    @Rachel Cutler I completely understand what you mean by having objective data but my point is you will have many markets that fit the objective data. There is no market that checks all the boxes and stands out above the rest so I always suggest mixing in just a tad of subjectivity in there to choose between the final markets.  

    Objective measures you can look for:

    Rental Rates compared to price

    population growth

    What sectors provide the most jobs in the area 

    Tenant friendly vs landlord friendly 

    property tax rate. 

    I'm sure there's a few more but those are the ones off the top of my head and you can see why you'll find many that fit that criteria. 

    And if you're going to be that hands off then great! Just make sure to find a team you can trust because being that hands off can lead to being ripped off very easily, especially if you're out of state. And It helped me understand the streets and neighborhoods of Cleveland 100x times more by visiting which is why I always mention it to people but 

    1Reply
  • Tanvir Sattar
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 380 posts · 588 votes
    6y

    @Rachel Cutler  I see a lot of clients invested in Ohio; Cincinnati, Cleveland, Columbus, Toledo, and Dayton.

    3Reply
  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Rachel Cutler I'm in a similar situation. CA investor - CA is too expensive for the most part. We previously held property in Pocatello ID but the metrics of that market are no longer making sense, either so we're looking to invest in other states. I've followed some of the posts here about investing in other states, hottest states to invest in, good cash flow markets, etc. It's tedious but you start to see some trends popping up and then I dig in deeper. For example, lots of cities in TN get mentioned over and over. Same with Indianapolis, Birmingham and many FL cities. So I go to City-data.com to get more specific demographics on income, housing prices, employers, growth, etc. Finally, when I find a city I like I look for local REI forums and start making connections to find people who really know the area. Hope this helps!

    [email protected]
    4Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    I recommend figuring out what investment strategy you would like to pursue. This will give you a better indication of what type of property you should be going after and will then point you in the right direction for markets. I am based out of Columbus and a lot of cities, in general, have the opportunity to make that amount of money go a long way with the right team. @Rachel Cutler

    [email protected]614-963-3340
    2Reply
  • Christopher B.
    Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
    6y

    @Rachel Cutler, as other have stated, if you don't want subjective opinions, looking at data will be best, such as population growth, job growth, or consulting with agents or investors in areas that you narrow it down to.  You will find that you can obtain good, or even great returns in areas that don't have the best growth, and that's where talking with investors in areas will assist. 

    If you don't want to visit the property maybe ever, and want someone else to take care of it all, I'm not sure even turnkey is what you are looking for.  Maybe a passive investment is better for you; What are your goals? 

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Rachel Cutler:

    I am reading David's Long Distance real estate book, watching webinars, listening to podcasts, etc. and am open to investing ANYWHERE with about $20K cash. I want to start analyzing properties, but I don't know where to start looking.  So my question is how do I pare down the search...there are too many options!  What steps should I be following next?

     I would just pick a city and go for it. Set up your core 4 and start writing offers!

    Columbus, Ohio is a great market if you are looking for more suggestions.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    1Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    Miami, LA, San Fran, Seattle, Boston come to mind

    0Reply
  • Rachel Cutler
    OP
    New to Real Estate · New York City NY, United States · Member since 2020 · 18 posts · 15 votes
    6y
    Originally posted by @Brandon Goldsmith:

    I recommend figuring out what investment strategy you would like to pursue. This will give you a better indication of what type of property you should be going after and will then point you in the right direction for markets. I am based out of Columbus and a lot of cities, in general, have the opportunity to make that amount of money go a long way with the right team. @Rachel Cutler

     Thanks, Brandon.  I'm looking for buy and hold and Columbus is on my list for consideration, although I feel that I am a bit priced out of it.

    2Reply
  • Rachel Cutler
    OP
    New to Real Estate · New York City NY, United States · Member since 2020 · 18 posts · 15 votes
    6y

    Thanks @Brian Tunnell I will most likely be in touch.

    This is good stuff to consider @Jacob Repreza

    Good question @Christopher B.  A passive investment would work for me, AND I still want to have the knowledge base to make my best-educated investment.  I'm also not sure an opportunity like that would come along, so I am focusing on finding the right thing from afar.

    @Bonnie Low I really appreciate your post and I copy and pasted it into my notes to focus on.  Thank you!

    To all the Ohio/Columbus people...I am interested in digging a bit deeper into that specific market, if you have suggestions.

    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    I second both @Brandon Goldsmith and @Remington Lyman's advice on this! Best of luck to you! 

    2Reply
  • Kalim Kalla
    Investor · Atlanta, GA · Member since 2018 · 104 posts · 116 votes
    6y

    @Rachel Cutler Hey Rachel I am very well versed throughout the Atlanta Market, specifically 30318 NW Atlanta and those rapidly growing neighborhoods. Would be more than willing to run you through some of our market conditions down here at the moment.

    1Reply
  • Gualter Amarelo
    Investor · Fall River, MA · Member since 2014 · 399 posts · 300 votes
    6y

    Hi @Rachel Cutler, great question to ask, we have been looking to invest out of state ourselves, though much larger # of units. Boots on the ground is very important. With 20K cash in the pocket you would want to focus on gateway cities, which are usually 30-40 min out of major cities. We invest in Fall River MA currently and have a massive team in place, including wholesalers, contractors, lenders, etc. You may be able to get a single family flip going with 20K cash and 100% construction cost rehab with Seller carrying a portion of the note or donwpayment for a year or two.  

    4Reply
  • Johnny Wolff
    Investor · Kansas City, MO · Member since 2019 · 130 posts · 118 votes
    6y

    @Rachel Cutler - think I'd save up $10-$20K more so you can invest in good areas of good cities.

    $80K properties are pretty meh, even in the midwest.

    2Reply
  • Jarret Sa'o
    Rental Property Investor · San Diego, CA · Member since 2020 · 29 posts · 13 votes
    6y

    @Rachel Cutler kind of in the same boat here

    0Reply
  • Antonio AnconaPro Member
    Member since 2020 · 1 post · 1 vote
    6y

    @Gualter Amarelo I am also looking to invest in different cities with about $35k-$40k . You have connections that can help?

    1Reply
  • Gualter Amarelo
    Investor · Fall River, MA · Member since 2014 · 399 posts · 300 votes
    6y

    @Antonio Ancona absolutely! There are options to invest with $30k-$40k all over the country.

    Where do you currently live? I may have someone I can connect you with.

    Cheers to our success!

    0Reply
  • Jarrod Kohl
    Boston, MA · Member since 2017 · 209 posts · 126 votes
    6y

    @Rachel Cutler

    Happy to connect. I have a lot of family real estate connections, though they are more Cleveland than Columbus. But happy to connect you.

    1Reply
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