All Forum Posts by: Mike Paolucci

Quote from @Natalie Johnstone:

Hi All - I'm brand new and have a goal to buy a property by EOY.  I'm overwhelmed by which market(s) to choose.  

Hi @Natalie Johnstone. I'm born and raised in San Francisco and ran into the same issue when I was starting off in 2021. I ultimately settled on Ohio for a more landlord friendly and better price point/not have to run a negative every month after the property was stabilized. Been pretty happy with my decision. 

Here's an example of why I'm not a big fan of investing in Cali anymore--> "Justice for Renters Act" Not exactly ideal for landlords, imo. 

When picking a market, I would recommend first looking at whether or not the state is landlord friendly and then the macroeconomics (population & job growth / any additional drivers that are helping the local economies) of the various cities you're potentially targeting.

To answer your question about inspecting the property, an investor friendly realtor should be able to help connect you with a local inspector with a good track record and multiple property managers who should also be able to help answer most of your questions. 

 Happy to share some of my experiences as an OOS investor or answer any questions you might have! Good luck on your journey! 

Quote from @Joey Navarro:

Howdy BiggerPockets Fam, 

I feel like I'm in a good place  to finally pull the trigger and invest in my first multi-family property. I plan to house hack for my first  investment property and most likely do the same for my 2nd, 3rd, property as well! 

 Great strategy! I'm house hacking a duplex in Hilliard currently. Excellent way to break into investing and scale your portfolio. I'm originally from San Francisco, CA so happy to help & be a resource for you. Good luck with your journey! 

Quote from @Wayne Toh:

Hi everyone,

I am a recent graduate and working as a Mechanical Engineer in San Jose. I am looking to start my real estate investment journey but it is difficult starting out in the bay area. 

Welcome to the community! I'm originally from San Francisco and ran into the same issue when I started investing in 2021. I ultimately decided to invest out of state where the numbers made sense for me. 

Happy to connect and answer any questions you might have. 

Quote from @Bryan Melendez:

Hello all, my name is Bryan Melendez.

I am new to all thing's real estate, residing in South Florida. After reading several articles and comments, Section 8 has caught my attention for various reasons.

I can't provide much about Pennsylvania or Michigan but I can share some of my experiences about Columbus, OH as a former out of state investor. I personally like Section 8 tenants. They generally stay in place for a lot longer and you don't have to worry as much about late rent. Once you're set up in the system, rental payments are pretty timely. 

The frustrating part can be the onboarding process. That can take longer than most people would be comfortable with on their investment properties but once you're on the books, things tend to run pretty well. Vetting your tenants and making sure the unit is up to the Section 8 standard will be the 2 most important things for making sure you don't run into issues. 
I normally recommend using a Property Manager who works with the program regularly to help navigate the waters. 

Happy to connect and share some additional experiences as a former OOS investor. Good luck on your search!

Quote from @Manuel A Zuaznabar:

Hello everyone,

I've been trying to buy property in my home market of NYC, but it's been quite challenging. 

@Manuel A Zuaznabar if you can find a house hack (2-4 units if possible) deal that makes sense locally, do it. Otherwise I'd suggest looking into other affordable markets that have a good growth rate & other economic drivers. 

I originally started off as a OOS investor from CA and chose to invest in the Midwest. Happy to answer any questions you might have if you're interested in that kind of investing. 
 

Quote from @Manav Kedia:

Hi, I'm a CA resident new to the RE world and looking for suggestions on what are some good cities/areas to buy good single-family/multi-family homes that generates good cash-flow.

I've been pretty happy with my investments in Columbus, Oh since starting off in 2021 while being born and raised in San Francisco. Some other Ohio markets I'd suggest looking at are Cleveland, Cincinnati and Dayton. 

Happy to connect and share some of my experiences as an OOS investor. 

Quote from @Jesse Leigh:

Hi! Looking to connect with out of state investors in the Los Angeles area. Specifically Columbus investors. Would love to meet for coffee in LA and learn from anyone investing out of state. 

Just sent you a PM. 

Congrats on the duplex @Sean Haran! 

Section 8 is a great way to cashflow these days! I would recommend reaching out to local property managers who specialize in Section 8 Rentals to get a better sense of what timelines are looking like for section 8. Timelines tend to vary depending on CHMA's work load at that point in time. I can send you a couple of referrals.

Quote from @Rahul P.:

Hello everyone, i am based in california bay area. recently bought a house in  Sacramento CA. I am thinking to buy rental property in  Texas denton, Kyle, Buda. 

 Glad to see other investors from CA looking out of state. I'm originally from San Francisco and started off in 2021 doing the same thing but in Ohio. 

Let me know if you have any questions about being an OOS investor. Happy to help out. 

Quote from @Shiwei Qu:

Quote from @Mike Paolucci:

Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

 Hi @Shiwei Qu, I'm originally from San Francisco myself and started investing in Ohio back in 2021 before moving to Columbus in 2022. 

Yes, there are still some opportunities, not only in Columbus but other cities as well. As previously mentioned, Columbus has shifted to more of an appreciation type market but there are still some deals that will show some cashflow. 

If you're looking for cash-flow, then I would look at cities like Dayton & Cleveland. 

 Thanks Mike, glad to hear from another former bay area investor/realtor's insight. 

 Happy to connect if you have any other questions about Ohio or OOS investing in general.