Trying to invest out of state

Member since 2021 · 5 posts · 5 votes

Working to try and invest in out of state real estate because where I live the prices are very high. Does anyone have any recommendations/books to read on how to start the process of out of state investing? Any help is appreciated, thanks in advance!

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Joshua JanusBusiness Member

Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes

Quote from @Nicholas Vandermolen:

I would advise finding an investor friendly realtor. You really want someone that invests in their market themselves and understands the numbers. They should be able to determine the COC, annualized return, estimated ARV of a BRRRR, accurate rent comps and more. The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route. If they just represent first time single family home buyers and aren't constantly finding off market properties and reviewing deals, you'll find a better investment through someone else.

https://www.kiavi.com/blog/out-of-state-real-estate-investing

https://learn.roofstock.com/blog/out-of-state-real-estate-investing

I choose to invest in Cleveland and Columbus, Ohio. Cleveland is ideal for lower priced multi family properties with soaring cash flow. Columbus is a top five appreciating city in the US with an unexpected mix of cash flow which is backed up by a population and job growth. Breaking the One Percent Rule isn’t uncommon in either of these areas and can be applied as a baseline in situations where immense appreciation isn’t expected in B-C class neighborhoods. Whatever market you choose to put your money in, spend the time to learn it.

[email protected]614-502-5316 Podcast Guest on Show #1

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Andrew Garcia
Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
4y
Hi @Nicholas Vandermolen, I believe some guy that has not watched Interstellar wrote a book on something exactly like this.
He runs a small podcast I think.
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Steve Harlow
Investor · Irvine, CA · Member since 2014 · 46 posts · 30 votes
4y
The best thing you can do is become as smart as possible on all of the aspects of owning property. The acquisition, rehab and managing. Then you will be able to better judge what that provider is offering you.
The books (podcasts) are written by people selling you on this idea. Be careful and do your own research.
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Nicholas Vandermolen
where are you located?
In my opinion, the best OOS market is not one you randomly pick in Iowa or Ohio or Florida, but one you have strong ties to (school, family, friends, lived there previously, etc.)
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Joshua JanusBusiness Member
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y
Quote from @Nicholas Vandermolen:

Working to try and invest in out of state real estate because where I live the prices are very high. Does anyone have any recommendations/books to read on how to start the process of out of state investing? Any help is appreciated, thanks in advance!

I would advise finding an investor friendly realtor. You really want someone that invests in their market themselves and understands the numbers. They should be able to determine the COC, annualized return, estimated ARV of a BRRRR, accurate rent comps and more. The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route. If they just represent first time single family home buyers and aren't constantly finding off market properties and reviewing deals, you'll find a better investment through someone else.
https://www.kiavi.com/blog/out-of-state-real-estate-investing
https://learn.roofstock.com/blog/out-of-state-real-estate-investing
I choose to invest in Cleveland and Columbus, Ohio. Cleveland is ideal for lower priced multi family properties with soaring cash flow. Columbus is a top five appreciating city in the US with an unexpected mix of cash flow which is backed up by a population and job growth. Breaking the One Percent Rule isn’t uncommon in either of these areas and can be applied as a baseline in situations where immense appreciation isn’t expected in B-C class neighborhoods. Whatever market you choose to put your money in, spend the time to learn it.

[email protected]614-502-5316 Podcast Guest on Show #1
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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
4y
Quote from @Nicholas Vandermolen:

Working to try and invest in out of state real estate because where I live the prices are very high. Does anyone have any recommendations/books to read on how to start the process of out of state investing? Any help is appreciated, thanks in advance!
It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.
As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.
[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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Nicholas MischPro Member
Investor · Broadview Hts, OH · Member since 2016 · 310 posts · 280 votes
4y
David Greene wrote a great book, Long Distance Real Estate Investing available at the BP bookstore. Also as some have said, find a good trustworthy realtor and or property manager in the locations you are considering as they can be great resources for deals and local information.
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Valentina Calla
Real Estate Agent · Orlando, FL · Member since 2021 · 65 posts · 53 votes
4y
Hello Nicholas! I think the best route you should take is to do some research on each market you are interested in and find an investor-friendly agent in each area to help you narrow down the best market for your specific goals. They will also help you find and calculate which properties will be a good investment. For example, I work with multiple out-of-state investors looking for STR in the Disney area. I send them detailed virtual tours, run comps, and help them calculate their ROI for each unit to see if they will have decent cash flow. The most important part of being an out-of-state investor is having a reliable "rockstar" team that also invests themselves.
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