Out of state investing

12 Replies

@Franklin Lucas , it might depend on your goals and strategies. Are you looking to favor cash flow or more interested in a stable market with possible appreciation. Do you want to self manage? Do you mean all of New York, because Manhattan is a very different prospect than up state? Do you know people in any of the markets you mention that might already start you on your way with connections?

Hey @Franklin Lucas , welcome to the BP community.

It seems like since COVID we have gotten about half the population of NY moving down to Atlanta, plus lots of OOS investor activity. This is a large part of why the market is absolutely on fire right now. 

If you are in the city I would say look OOS and Atlanta can be a great option if you are patient and prepared for the competition. If you are not in the city, I'd say stay local for your first deal or two. It will be way easier on multiple levels. As @Chad Lanting mentioned, you definitely need to know some people in whatever market you choose but this is even more important OOS since your team in your target market is everything. A great team could make investing OOS a breeze but a terrible team will make it impossible.

Speaking of great teams, ours has been formed over years of working with investors. So please, if you ever have any other questions or just want to chat about the Atlanta market, don't hesitate to reach out anytime!

Good morning @Franklin Lucas  

My name is Sean I live on Long Island.  I own rental properties in Memphis TN and a bunch of multi Families in CT market.  I would highly recommend investing out of state.  Returns are better.  Make sure you get educated on whatever market you choose and get advise from investors, property managers, and contractors.  Feel free to reach out if you need any help

@Franklin Lucas

I’m Not sure about buying in your state, but I moved from California to Memphis, because cost of acquisitions , was 10-12 to 1 so it made a lot more sense, the biggest part of investing out of your area is the management, you must have great managers or you will not get the returns your hoping for. 

@Franklin Lucas what do you think? Do you have some data you are currently using to pick you market? Share it and you can get the communities feedback to guide your thinking. If you don't have data and some thoughts already I wouldn't take the communities advice just yet. They are here to help but it you follow them blindly without applying your own thought you are not going to learn and are likely to be lead astray.

Hello Franklin,

New York is in a funny place right now, what with the mass exodus out of the city and all, so I would recommend out-of-state right now. 

Have you considered Connecticut at all? A lot of people are moving here from the city so the market is very hot at the moment. 

The first steps I would recommend as a new investor in rental properties is to get a handle on analyzing the income, expenses and ROI of these properties.

Connecticut in general is in a sellers market. You will need to be creative in negotiating to get the price / terms you need.

You can use the Bigger Pockets calculators to start. Right now rents are strong, you can get $800 for a 1 bed, $1100 for 2 bed, and up to $1300 for a 3 bedroom. Use Zillow and rentometer.com to get data and analyze a few from your home to see what type of returns there are.

If these meet your investment criteria then start looking in person by contacting the listing agent.

Let me know if you have any questions.

-Craig Bellot

Hello Franklin,

New York is in a funny place right now, what with the mass exodus out of the city and all, so I would recommend out-of-state right now. 

Have you considered Connecticut at all? A lot of people are moving here from the city so the market is very hot at the moment. 

The first steps I would recommend as a new investor in rental properties is to get a handle on analyzing the income, expenses and ROI of these properties.

Connecticut in general is in a sellers market. You will need to be creative in negotiating to get the price / terms you need.

You can use the Bigger Pockets calculators to start. Right now rents are strong, you can get $800 for a 1 bed, $1100 for 2 bed, and up to $1300 for a 3 bedroom. Use Zillow and rentometer.com to get data and analyze a few from your home to see what type of returns there are.

If these meet your investment criteria then start looking in person by contacting the listing agent.

Let me know if you have any questions.

-Craig Bellot

Originally posted by @Sean Toomey :

Good morning @Franklin Lucas 

My name is Sean I live on Long Island.  I own rental properties in Memphis TN and a bunch of multi Families in CT market.  I would highly recommend investing out of state.  Returns are better.  Make sure you get educated on whatever market you choose and get advise from investors, property managers, and contractors.  Feel free to reach out if you need any help