New to investing, no more flipping
Hi BP Community!
I'm a CA resident looking to purchase my first out-of-state duplex for a long-term rental investment.
Here are my criteria:
• Purchase Price: Maximum $250k
• Capital Available: $80k (intended for down payment and closing costs)
• Strategy: Looking for a solid, functional cash-flow property —nothing flashy or distressed. Since I am unfamiliar with markets outside of California, I’ve been looking into the Midwest and parts of the South based on general cash-flow trends. Which specific cities/submarkets would you recommend for this budget where I can realistically find stable inventory and solid property management? I’d love to connect with anyone investing in these areas!
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#2 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
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#2 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
hello. a few reactions.
-you can find stable inventory and solid property management anywhere if you look hard enough. what you won't get is cash flow.
-returns on non-value add LTRs have gone to zero in the short term. so you need to think hard about where to invest that 80K. if you have a strategy that is going to produce a return for you, that's great. but there is no "cash flow" whatsoever in the short term on LTRs right now. none. not in any market. run honest numbers that actually take all costs into account and you'll see. for example, if you pay 5-10K in closing costs, 1-2 months' rent to lease up, and a few thousand to freshen up, and then your first tenant turns over after 12 months and you spend 3K to clean and re-rent, how long will it take to pay yourself back if you're netting $200 a month?
-OOS investing is more difficult than advertised. a lot of new investors assume that if you have the "team" in place - agent, lender, PM, etc. - things will just be handled. they won't. the QB of the team remains you. no one is going to take ownership of the whole process. a PM doesn't guarantee you a smooth experience; they do whatever their PM agreement says they'll do/
-read every thread @Drew Sygit posted and take it to heart.
hope this helps