Out of State Investing

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Out of State Investing

Preeti Sampath
Member since 2019 · 26 posts · 15 votes

I live in Denver and own properties for rentals here. Lately, since Colorado is the new California, we are now in low supply market where prices are rising fast and anything that is good has huge bidding wars and people paying way more than the property is worth. As an investor, I want to look at other states as the Denver market cools off. Are there any areas that are up and coming that are good for rental investing? Also, love to build some connections of people in other states to learn more about their investing experience. If you're looking at Colorado market, I can help you also with insight into this crazy market. Thank you!!

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Michael Orlando
Investor · Cleveland, OH · Member since 2019 · 147 posts · 156 votes
5y

Ohio has some solid markets - Cleveland for cashflow, and Columbus for appreciation. Cinci and Dayton have their benefits too! My partner and I invest in Cleveland though and love the returns we can hit. 

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  • Toby Khan
    Investor · Minnesota & Kansas · Member since 2020 · 176 posts · 75 votes
    5y

    Lot of great info on this thread. I am more focused on the cash flow and appreciation is added bonus for me-I invest mainly in MN, KS & lately looking into OK.

    1Reply
  • Account Closed
    Investor · Pittsburg, CA · Member since 2018 · 11 posts · 23 votes
    5y

    I've been investing in Columbus, OH. Feel free to shoot me a message if you want to chat!

    2Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Preeti Sampath

    I can also attest to the great results of the Columbus Ohio market

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    1Reply
  • Jim Suttles
    Member since 2019 · 1 post · 0 votes
    5y

    I do not know much.  But, investing for appreciation seems like a poor investment strategy, considering the bubble we are in.  Am I missing something.  Just trying to learn the thinking. 

    0Reply
  • Aleksandra Liaplina
    Member since 2020 · 10 posts · 4 votes
    5y

    @Thornton D., @Brandon Koster I have also been looking at Huntsville. What worries me is how easy it is to find people who will rent? It sounds like it's better to buy overall and prices are very low. Would really appreciate any insight on this, and also on the areas/neighborhoods that are trending. 

    1Reply
  • Ben Freeburg
    Rental Property Investor · Seattle, WA · Member since 2011 · 47 posts · 12 votes
    5y

    @Jake Martinez I've been looking at Boise and can't find anything that cash flows. Are you still seeing opportunity there?  I have been investing in Spokane and deals are hard to find there as well.

    0Reply
  • Max FeinbergPro Member
    Real Estate Agent · Pittsburgh, PA · Member since 2017 · 151 posts · 70 votes
    5y

    Pittsburgh has been, and will continue to be a great rental market for out of state investors. One of the many beautiful things about investing here in Pittsburgh is that you have options. You can go the cash flow route on a single family or small multi in a not so great area, or you can go with the "pay off the mortgage" play in A- to B+ areas that may even continue to appreciate. And of course there is the popular option of investing in B- to C+ areas that provide 2-300 dollars in cash flow a month and are in pretty stable markets. Lots of people are having great success here in western PA.

    0Reply
  • Holly Sarria
    Mission Hills, CA · Member since 2019 · 36 posts · 10 votes
    5y

    @Preeti Sampath Thank you for posing this question. We hear what you're saying, we're in the same boat.

    My husband and I are also researching markets to invest in out of state.

    • We live in CA, in my parents second property. The property is a combo of two houses on one lot (we live in the front house). Anyway, we spoke with our parents and they decided to give us a private loan in order to start our real estate investing.

      Our Strategy
      Have my parents get a HELOC on this paid off second property. This would be our source for cash offer/rehab to a property.
    • We plan on purchasing something OOS and using the BRRRR method.
    • With the refinance portion of the BRRRR we can pay back the HELOC to my parents property. If we cant pull out all of the money to pay it back we would cover the rest with our own savings. (And if its successful the funds will be available to do it again.)

    What do you guys think of this strategy?

    Does anyone have any recommendations for a lender that would do a HELOC on a second property in CA?

    What markets would you recommend we set our sights on and do deep research. You hear about so many options that its a bit overwhelming. We are looking for cash flow and if it appreciates thats a +.

    Any info or advice would be greatly appreciated. Thank you guys for reading and we look forward to a conversation.

    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    5y

    @Holly Sarria

    I would just go out of state cashflow. BBRR has many issues as I have touched up on in the past and its not as simple as everyone make it.

    1Reply
  • Aleksandra Liaplina
    Member since 2020 · 10 posts · 4 votes
    5y

    Anybody buying properties in the southern states? I live close to Washington DC, and want to invest going South and West. Texas and Arizona might be a bit too far to start with. Although, I don't totally exclude these options. Ideally, both - cashflow and appreciation. Thanks in advance. 

    0Reply
  • Stephen Lee-Thomas
    Rental Property Investor · Fresno, CA · Member since 2016 · 25 posts · 18 votes
    5y

    @Preeti Sampath

    I wrote a blog post here on BP last month taking information from several sources.  The focus is on multifamily investing but the content regarding job growth and population growth would be relevant even if you are looking at single family homes.  Below is a listing of the top markets from what I'm seeing in the data.  Feel free to check out my post and ask questions.  I'm always happy to help where I can. https://www.biggerpockets.com/...

    Top 2021 markets for apartment investing
    • -Atlanta
    • -Texas – DFW/Austin/Houston
    • -Tampa/Jacksonville corridor
    • -Phoenix
    • -Columbus
    • -Denver/Colorado Springs
    • -North Carolina Primary and Secondary
    • -Nashville/Knoxville
    • -Indianapolis
    • -Salt Lake City/Boise
    • -Des Moines Omaha
    4Reply
  • Chris De CellePro Member
    Rental Property Investor · Los Angeles, CA · Member since 2016 · 41 posts · 28 votes
    5y

    @Preeti Sampath we Geo-Target toward diversified job centers. If there are ample employment opportunities, residents will be able to pay rent. Always follow the money!

    1Reply
  • Don SpaffordPro Member
    Investor · Idaho Falls, ID · Member since 2016 · 935 posts · 629 votes
    5y

    Pretty much every major city is in a similar situation. Prices are high, there are lots of competitors buying. Your best bet is to choose a market you like for whatever reason, and then look to surrounding cities. Suburbs that are within a reasonable drive for someone to work in the main city but live in a quieter area, maybe 30 min drive outside of the major city. If you are considering Boise for example, look to Mountain Home and Caldwell. You can find similar homes for considerably less and have a better chance at getting them with less buyers competing. Maybe even less property taxes.

    2Reply
  • Yvonne Ng
    Member since 2020 · 14 posts · 2 votes
    5y

    @Stephen Lee-Thomas what do you think about the Tucson,AZ market?

    0Reply
  • Stephen Lee-Thomas
    Rental Property Investor · Fresno, CA · Member since 2016 · 25 posts · 18 votes
    5y

    @Yvonne Ng Funny you should ask. Here's a recent post with the same question https://www.biggerpockets.com/...  Here's a 2021 outlook report for Tucson from Berkadia https://berkadia.com/wp-conten...Overall Tucson is probably a pretty good area so long as you take the time to do your underwriting. Take a conservative approach and don't expect any huge appreciated.  In my opinion the economy is in a good position to make a full recovery by next year but the stock market seems unpredictable at the moment.  Job growth should be good and lots of dollars are flowing into more stable investments like real estate.

    Hope on over to that post for more discussion on Tucson.  There are some people there who are much closer to that market than I am.

    1Reply
  • Yvonne Ng
    Member since 2020 · 14 posts · 2 votes
    5y

    @Stephen Lee-Thomas Thank you! 

    0Reply
  • Fiza Ah
    Investor · Member since 2020 · 80 posts · 71 votes
    5y

    @Stephen Lee-Thomas Thanks for your insights! I'm looking for multi-family opportunities so if you pass on any 5+ units, please think of sending them my way.

    0Reply
  • Stephen Lee-Thomas
    Rental Property Investor · Fresno, CA · Member since 2016 · 25 posts · 18 votes
    5y

    @Fiza Petro will do!

    0Reply
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