Not sure where to start my investing journey

San Francisco, California
Out of State Investing
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Not sure where to start my investing journey

Shrikant Kakani
Member since 2022 · 4 posts · 12 votes

Hi All,

I have been reading a lot of books and listening to a bunch of podcasts about real estate investing and I feel like I'm ready to take the next steps. The huddle I'm facing right now is I stay in HCOL (San Francisco) where investing won't make much sense due to high property prices. Hence, I have been exploring a few LCOL/MCOL markets, but I am not sure where to invest. Thus, I decided that out-of-state investing would make the most sense. Here's my research:

- I have been exploring Ohio and Texas, but the property taxes are extremely high and there will hardly be any cash flow. The same issue lies with Chicago as well.

- Then I checked out the Detroit market and realized that the job and population growth has declined in the past few years and landlords are finding it hard to fill the vacancies.

- Lastly, I checked out the Colorado market (especially Colorado and Colorado Springs), and the property prices are high there and hence, it won't cash flow there either.

Hence, while I want to begin my journey, I am not sure where to start. Maybe I'm overthinking? But being a rookie investor, I'm terrified and need help exploring the path to success. All inputs are welcome.

Thanks!

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Most Popular Reply

Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
2y

@Shrikant Kakani anything that cashflows right now, will come with risk.

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:

Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.

Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 years

Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

PM us if you’d like to discuss this logical approach in greater detail!

[email protected]248-209-6824
Logical Property Management4.9458 Reviews
WebsiteView Page
4Reply
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Shrikant Kakani:

    I'm not sure how you landed on those particular cities. Do you think you have to invest in a large city to make a profit? 

    Search BiggerPockets for Dave Meyers, or watch some of his videos on YouTube. He lists the best states to invest in and backs it up with data.

    You can also consider investing outside of these major cities. I can throw a dart at Ohio and find cities with properties that make sense. Kentucky, Indiana, Tennessee, West Virginia, etc.

    A word of warning: don't invest in a market unless you know there is a good PM to handle your property. A bad PM can destroy the best investment.

    The DIY Landlord Book4.7248 Reviews
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  • Joe DerobertisPro Member
    Altadena, CA · Member since 2014 · 70 posts · 42 votes
    2y

    I’m not saying this is the best thing to do, but I recently started out and you sound a lot like me. I decided to take the “out of state investing” plunge by working with some turnkey providers. I’m quite certain I gave up some returns, but I hoped to take out some of the risk by “partnering” with these providers. For me it cut down on the time to build an out of state team and gave me access to people who knew the area. The providers I chose also have their own Property Management so I felt like they were going to have to stand behind their service. 

    Now full disclosure, I am only a few months into my relationship with these providers so it could all blow up in my face, but ultimately I wanted to take action and for me this was the safest way to do that and I also figured the learning along the way might be worth giving up some larger returns. 

    If things go well I’ll have some folks to expand with and maybe some knowledge, and most importantly, courage to try other investing options. 

    1Reply
  • Neil Ginty
    Architect · Bay Area, CA · Member since 2022 · 37 posts · 27 votes
    2y

    Cash flowing anywhere is pretty hard at the moment. If you are just starting out, a house hack in your own backyard makes a lot of sense. House hacking is a good way to learn a lot fast, and possible with low down payment. Also, in Bay Area, appreciation will likely make cashflow less of a priority… 

    1Reply
  • Leroy K. WilliamsPro Member
    Property Manager · Southfield Mi · Member since 2018 · 183 posts · 172 votes
    2y

    I think you should take a closer look at Detroit and here is why:

    1. Detroit's population is actually growing according to recent surveys not shrinking 


    Census Bureau estimates: Detroit population rises after decades of decline, South dominates growth (michiganpublic.org)

    2.  The new population coming to Detroit are young and talented people who want to be part of the rise of the Motor City.  These young adults who are currently filling up apartments will eventually start building families and will be looking for single family housing. We are already seeing this trend unfold in certain neighborhoods and values are spiking fast.

    3. The Major international border project is nearly complete called the "Gordie Howe International Bridge" This will increase the connectivity between Detroit and Windsor Ontario and create synergy which will change both riverfronts and the surrounding neighborhoods 

    "As one of Canada’s most significant infrastructure projects, the Gordie Howe International Bridge is creating thousands of jobs and driving economic activity today and will serve as an important trade corridor for Canada and the U.S. once complete and for generations to come. Congratulations on this important milestone.”
    – The Honorable Catherine McKenna, Minister of Infrastructure and Communities

    Detroit will likely become the greatest opportunity for real estate investors for the next decade.

    0Reply
  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 495 posts · 551 votes
    2y
    Quote from @Shrikant Kakani:

    Hi All,

    I have been reading a lot of books and listening to a bunch of podcasts about real estate investing and I feel like I'm ready to take the next steps. The huddle I'm facing right now is I stay in HCOL (San Francisco) where investing won't make much sense due to high property prices. 

     I was born and raised in San Francisco and ran into those same issues back in 2021 when I first started. Glad you're looking into OOS in more affordable markets. I ultimately chose Columbus Ohio and have been pretty happy with my decision. 

    Are you looking for cashflow / appreciation / combo of the two? 

    Which markets in Ohio were you looking at? Depending on your target market, you'll still be able to find some good deals (depending on your strategy). I can't really speak too much about the other markets you've looked into but I'd be happy to connect and discuss both the Ohio markets and my experiences as an OOS investor. 

    [email protected]614-892-9184
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    3Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    Among a few other things, if you don't have conviction on how to move...do not move.

    1Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    I would do a lot of research to understand the true values and differences of cash-flow and appreciation. This will make it easier to determine what you're looking for in an investment. 

    Columbus, Ohio is a great market to consider if you're leaning towards appreciation. I moved here from Florida after seeing the expansive growth in the Columbus market.

    There are multiple billion dollar companies dumping money into the city, such as Intel, Google, and Amazon. And a lot of start-up companies are migrating to this city as well, because of the efficient costs of living, the OSU campus that has thousands of students graduating and looking for jobs locally, and the availability of land.

    Everything that’s going on here in Columbus is attracting investors and other businesses from all over. A recent study showed that 80 people are moving to this city every single week, which will continue to increase housing demand.

    [email protected]614-662-1652
    Reafco - Samuel Diouf528 Reviews
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    3Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2y

    @Shrikant Kakani anything that cashflows right now, will come with risk.

    Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

    If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

    So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

    Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:

    Class A Properties:
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% the more recent norm.
    Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.

    Class B Properties:
    Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
    Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 years

    Class C Properties:
    Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
    Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
    Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

    Class D Properties:
    Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation
    Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
    Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    PM us if you’d like to discuss this logical approach in greater detail!

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    4Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2y
    Quote from @Shrikant Kakani:

    Hi All,

    I have been reading a lot of books and listening to a bunch of podcasts about real estate investing and I feel like I'm ready to take the next steps. The huddle I'm facing right now is I stay in HCOL (San Francisco) where investing won't make much sense due to high property prices. Hence, I have been exploring a few LCOL/MCOL markets, but I am not sure where to invest. Thus, I decided that out-of-state investing would make the most sense. Here's my research:

    - I have been exploring Ohio and Texas, but the property taxes are extremely high and there will hardly be any cash flow. The same issue lies with Chicago as well.

    - Then I checked out the Detroit market and realized that the job and population growth has declined in the past few years and landlords are finding it hard to fill the vacancies.

    - Lastly, I checked out the Colorado market (especially Colorado and Colorado Springs), and the property prices are high there and hence, it won't cash flow there either.

    Hence, while I want to begin my journey, I am not sure where to start. Maybe I'm overthinking? But being a rookie investor, I'm terrified and need help exploring the path to success. All inputs are welcome.

    Thanks!


     Are you able to do a house hack locally? I did that in Ohio in 2017 and it has been a great experience

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Evan HoppleBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
    2y

    @Shrikant Kakani

    Columbus, OH is one of few markets that have property with enough cashflow to pay itself and all the metrics for long term appreciation. 

    [email protected]614-924-8151
    Reafco Real Estate
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    0Reply
  • Tanner PileBusiness Member
    Real Estate Broker · Colorado Springs, CO · Member since 2019 · 388 posts · 326 votes
    2y

    @Shrikant Kakani 

    In Colorado you need to do 25-30% to make long term rentals cash flow. Furnished mid and short term rentals will cash flow if managed correctly and you find the right location and property size. 

    Co-living works well in Colorado because there is no cap on the amount of nonrelated people that can live together as Denver and COS are wanting more density with in the major cities. 

    You have to get creative and make offers under asking price in CO to make properties work. 

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    0Reply
  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
    2y

    Have you established your overall goals yet?

    Start by identifying the type of properties that align with your goals. Consider the location. High-demand areas with strong economic growth and low vacancy rates are typically safer bets. Conduct thorough research on market trends, property values, and future development plans in the area.

    Networking with other real estate investors and professionals can provide valuable insights and opportunities. Join local real estate investment clubs, attend seminars, or engage in online forums to stay updated on the latest trends and strategies.

    Remember, real estate investing is not a get-rich-quick scheme. It requires patience, diligence, and a willingness to learn. However, with the right approach, it can be a rewarding and profitable venture that brings you closer to your financial independence goals.

    I'd be happy to connect with you and provide insights into the current Kansas City market, along with information on turnkey properties.

    [email protected]
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Shrikant Kakani

    house hack.  that's the best way to get started.  period.  and it might take some sacrifice.

    and before you tell me a house hack won't cash flow... a house hack isn't supposed to cash flow.

    do you already own something in SF?

    0Reply
  • Erika Aguirre
    Member since 2024 · 22 posts · 2 votes
    2y

    Hey Shrikant,

    I specialize on Investment Properties acquisitions. If you settle in Texas I can go through the details with you. Fix n Flip, Buy and Hold, Creative Financing etc. etc. 

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    2y

    @Shrikant Kakani- thanks ...if you  dont need to use financing - disreagrd the following tip ..if you will need to use a loan to acquire your 1st investment property - I would recommend getting the formal loan pre approval step completed ..this is free  and it will help answer many questions you have  and  help get you organized and  prepared . You can use a  hypothetical  purchase price and loan amount for the pre approval process  as this will get revised to the actual figures once you have located a  proeprty and have an offer accepted

    0Reply
  • Taz Zettergren
    Real Estate Agent · Memphis, TN · Member since 2019 · 365 posts · 264 votes
    2y

    @Shrikant Kakani welcome to the forums! It really depends on how active or how passive you want to be in the investment. For those who are able I always suggest for them to house hack so you get the full experience of what to expect in a rental property as you are in the trenches doing that work yourself and it comes with a lower cost of entry for a more expensive asset. 

    If you are looking to invest passively I would suggest looking in the southern/middle part of the country where the price points are much more friendly as well as the landlord laws areas like Memphis, Little Rock, DFW, Houston, SAN or Oklahoma. There are companies that are vertically integrated that can walk you from start to finish with the investment so naturally the interests will be mutually aligned. Feel free to reach out if you have any questions. Best of luck on the journey! 

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Shrikant Kakani

    To identify the best real estate investment market, investigate secondary and tertiary cities in the Midwest and Southeast. These markets strike a balance between affordability and the potential for cash flow and growth. Look for markets that are experiencing both job and population growth. Balancing cash flow and appreciation is critical, and the suburbs of Texas, San Antonio, and Chicago provide stronger cash flow options. Emerging markets with inexpensive housing and consistent development might also benefit new investors. To manage out-of-state assets, the market must have a solid property management infrastructure. Finally, conquer anxiety by starting small and studying markets that match your objectives.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
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  • Malvern Zimmerman
    Homeowner · Federalsburg, MD · Member since 2024 · 9 posts · 9 votes
    2y
    Quote from @Drew Sygit:

    @Shrikant Kakani anything that cashflows right now, will come with risk.

    Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

    If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

    So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

    Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:

    Class A Properties:
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% the more recent norm.
    Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.

    Class B Properties:
    Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
    Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 years

    Class C Properties:
    Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
    Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
    Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

    Class D Properties:
    Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation
    Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
    Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    PM us if you’d like to discuss this logical approach in greater detail!


     Great breakdown! One question - how do you determine if a property is Class A, B, C or D?

    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    2y
    Quote from @Shrikant Kakani:

    Hi All,

    I have been reading a lot of books and listening to a bunch of podcasts about real estate investing and I feel like I'm ready to take the next steps. The huddle I'm facing right now is I stay in HCOL (San Francisco) where investing won't make much sense due to high property prices. Hence, I have been exploring a few LCOL/MCOL markets, but I am not sure where to invest. Thus, I decided that out-of-state investing would make the most sense. Here's my research:

    - I have been exploring Ohio and Texas, but the property taxes are extremely high and there will hardly be any cash flow. The same issue lies with Chicago as well.

    - Then I checked out the Detroit market and realized that the job and population growth has declined in the past few years and landlords are finding it hard to fill the vacancies.

    - Lastly, I checked out the Colorado market (especially Colorado and Colorado Springs), and the property prices are high there and hence, it won't cash flow there either.

    Hence, while I want to begin my journey, I am not sure where to start. Maybe I'm overthinking? But being a rookie investor, I'm terrified and need help exploring the path to success. All inputs are welcome.

    Thanks!


     I invest in Columbus and have not seen crazy property taxes here. It is true that the 1% rule is definitely hard to find but most investors are loving the equity plays and appreciation gains every year. 

    I would definitely connect with a good agent that sources a ton of off-market deals and has the right systems to help you understand the market. 

    [email protected]614-802-5698
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    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2y
    Quote from @Malvern Zimmerman:
    Quote from @Drew Sygit:

    @Shrikant Kakani anything that cashflows right now, will come with risk.

    Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

    If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

    So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

    Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:

    Class A Properties:
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% the more recent norm.
    Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.

    Class B Properties:
    Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
    Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 years

    Class C Properties:
    Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
    Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
    Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

    Class D Properties:
    Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation
    Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
    Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    PM us if you’d like to discuss this logical approach in greater detail!


     Great breakdown! One question - how do you determine if a property is Class A, B, C or D?


     We use these factors in this order of importance (feel free to create your own):

    1) Tenant pool credit score

    2) Location => Neighborhood

    3) Property condition & amenities

    Classes are not defined for the SFR industry and are relative to the area.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2y
    Quote from @Shrikant Kakani:

    Hi All,

    I have been reading a lot of books and listening to a bunch of podcasts about real estate investing and I feel like I'm ready to take the next steps. The huddle I'm facing right now is I stay in HCOL (San Francisco) where investing won't make much sense due to high property prices. Hence, I have been exploring a few LCOL/MCOL markets, but I am not sure where to invest. Thus, I decided that out-of-state investing would make the most sense. Here's my research:

    - I have been exploring Ohio and Texas, but the property taxes are extremely high and there will hardly be any cash flow. The same issue lies with Chicago as well.

    - Then I checked out the Detroit market and realized that the job and population growth has declined in the past few years and landlords are finding it hard to fill the vacancies.

    - Lastly, I checked out the Colorado market (especially Colorado and Colorado Springs), and the property prices are high there and hence, it won't cash flow there either.

    Hence, while I want to begin my journey, I am not sure where to start. Maybe I'm overthinking? But being a rookie investor, I'm terrified and need help exploring the path to success. All inputs are welcome.

    Thanks!

    Hi Shrikant, I personally recommend looking into the Columbus OH market. There has been continuous growth in the local economy along with population growth and job growth. My clients are successfully BRRRRing here and purchasing rentals for cash flow. Happy to connect and answer your questions about the market.
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
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  • Donato Callahan
    Member since 2023 · 30 posts · 19 votes
    2y

    Hey man, I agree with @Jimmy Lieu and @Drew Sygit and @Wale Lawal. 

    I did some research for you and made quick loom video about it. LMK if you have questions

    https://www.loom.com/share/a381935a865d4022b95e7a89d917407c?...

    1Reply
  • Donato Callahan
    Member since 2023 · 14 posts · 6 votes
    2y
    Quote from @Shrikant Kakani:

    Hi All,

    I have been reading a lot of books and listening to a bunch of podcasts about real estate investing and I feel like I'm ready to take the next steps. The huddle I'm facing right now is I stay in HCOL (San Francisco) where investing won't make much sense due to high property prices. Hence, I have been exploring a few LCOL/MCOL markets, but I am not sure where to invest. Thus, I decided that out-of-state investing would make the most sense. Here's my research:

    - I have been exploring Ohio and Texas, but the property taxes are extremely high and there will hardly be any cash flow. The same issue lies with Chicago as well.

    - Then I checked out the Detroit market and realized that the job and population growth has declined in the past few years and landlords are finding it hard to fill the vacancies.

    - Lastly, I checked out the Colorado market (especially Colorado and Colorado Springs), and the property prices are high there and hence, it won't cash flow there either.

    Hence, while I want to begin my journey, I am not sure where to start. Maybe I'm overthinking? But being a rookie investor, I'm terrified and need help exploring the path to success. All inputs are welcome.

    Thanks!


     Shrikant, I am happy to help. Here is what I look for and how I do it to make sure I never buy a bad property. This is a quick video showing my process. 

    https://www.loom.com/share/79170bf16882465e8fca26369a1fa1a7?...

    0Reply
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