All Forum Posts by: Mike Paolucci

I would avoid CA personally. I'm originally from San Francisco and agree with what @Brandon Croucier said about the direction the state is headed in. Here's an example of what I'm talking about coming up on the November Ballot --> "Justice for Renters Act". If you can find something to house hack then do it, just make sure you're aware of what the state is trying to do moving forward when it comes to being a landlord. 

As for properties in NC, it's up to you whether or not you want to visit. Majority of my clients haven't had to fly out to take a look at the properties they purchased. With the right teams in place - investor focused realtor / inspector / PM / Lender - you should be able to get a good idea of the quality of investment it will be. 

With that being said, if you think it's more beneficial to take a look at the neighborhoods for yourself, then it might be worth the trip. Kind of a personal preference imo. 

Quote from @Julie Philpott:

Quote from @Mike Paolucci:

Window units are very common in Columbus. I own several rentals in Linden with a mixture of AC installed vs not installed. Also, tenants will often times already have their own washer & dryer units and would rather use those instead of owner supplied W&D. 

Example:

1 -Single family - central air already installed when I purchased & I provided washer & dryer units. 

2- Duplex - no central air installed and washer & dryer units are provided by the tenants. I've kicked around installing AC but still manage to get renters applying to live there before I pull the trigger on installing AC. 

3 - 2nd Duplex - I installed central air after purchasing the property for inherited tenants but they've used their own W&D units for years.

Yes, it makes it more appealing to tenants searching for a place to stay, but you can always add AC / used washer & dryer units later on in order to make the unit more appealing. 

At the end of the day, I'd say it's more of a personal preference. They can also be another item that will need maintenance / replacements if they break down. 

Thanks so much for the input. Yes I do think this as personal preference now

 You're welcome. Feel free to reach out with any additional questions. 

Window units are very common in Columbus. I own several rentals in Linden with a mixture of AC installed vs not installed. Also, tenants will often times already have their own washer & dryer units and would rather use those instead of owner supplied W&D. 

Example:

1 -Single family - central air already installed when I purchased & I provided washer & dryer units. 

2- Duplex - no central air installed and washer & dryer units are provided by the tenants. I've kicked around installing AC but still manage to get renters applying to live there before I pull the trigger on installing AC. 

3 - 2nd Duplex - I installed central air after purchasing the property for inherited tenants but they've used their own W&D units for years.

Yes, it makes it more appealing to tenants searching for a place to stay, but you can always add AC / used washer & dryer units later on in order to make the unit more appealing. 

At the end of the day, I'd say it's more of a personal preference. They can also be another item that will need maintenance / replacements if they break down. 

Welcome to BP Joseph. I started off as an out of state investor as well. Happy to connect and share some experiences. 

Good luck with your journey 

Quote from @Ashley Gilbert:

Hi everyone! I'm so excited to be here. I was introduced to the BP podcast by a real estate agent in my Chamber of Commerce and I'm so happy she led me here. I'm giving myself a year to learn all I can and save up a down payment for my first long-term rental in my local area. Have a fabulous Labor Day! 

Welcome to BP! Congrats on taking your first steps in REI. Make sure you also attend some local investing meetups. Those are great places to network and learn from seasoned investors as well.

Good luck with your investing journey. 

As someone who moved from another state as well, I can relate to wanting all 4 seasons! You'll get everything you're looking for and more in Ohio.

Pretty happy with my decision to move to Columbus but Cincy and Cleveland are also great choices in my opinion. It will all depend on what kind of pace of life you're looking for. Happy to share some of my transplant experiences! 

Quote from @Muhammad Rehan:

Experts, I am looking for some pointers which areas to target for my 2nd rental property. I am based out of California.

$$ Range = max 250k

Down payment = max 25%

Goal = Positive cash flow

Below are the areas i have done some research on so far.

Fayetteville, NC 

Like the fact that there property taxes are low, hence the rental comps vs expenses (mortgage + property taxes + hoa + insurance etc) are kind of breakeven or slight positive cash flow is possible. Assuming 7.5% mortgage rate.

Pflugerville, TX

Property tax is high but austin suburbs seems to have potential of growth due to major techs moving in the area. Rental comps vs mortgage not quite giving positive cash flow with high rates.

I also have areas like memphis, columbus, oklahoma in mind but haven't done thorough research on these so far.

Can anyone advice what other areas (or best from the above list) to look for within my budget and goal in mind.

Appreciate any pointers and happy to connect with local agents/investors.

Hi Muhammad,

Can't speak for the other states but when I was starting off based out of San Francisco back in 2021, I ended up choosing Columbus, OH and have been pretty happy with my decision. I've seen good cashflow & even better appreciation since starting off. 
You can still find properties with your budget in mind. 

If you're targeting mostly cashflow though, then I'd recommend the Dayton & Cleveland markets. You just won't see as much appreciation as you would in Columbus. 

Happy to jump on a call and share some of my out of state experiences. 

Quote from @Josue Ramos:

Hello, my Fellow investors

I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. 

Glad to see another Bay Area investor looking out of state. I'm a San Francisco Native and went the out of state route in 2021. I ended up targeting Columbus, OH as my main market so happy to help answer any questions you might have and share my experiences as an OOS investor. 

I would still target Ohio as a market but I would also be looking into markets like Dayton / Cleveland / Cincy. All 4 of the markets provide different results in terms of appreciation & cashflow. 

I can't speak too much about the other markets but happy to be resource for you when trying to figure out which market you want to target. I would suggest picking 1 market to focus on though. Once you have more experience and know if REI is right for you, then you can expand into other markets.

Good luck on your REI journey!

@Ryan Louz A lot will depend on what your investing goals are. 

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

Happy to jump on a call and share some of my experiences investing in Columbus from when I started off as an OOS investor from CA. 

Quote from @Joyce A Debrah:

Hello all, 

My name is Joyce and I am ready to get into the world of real estate.  I have heard about BP for YEARS.  I'm looking forward to learning as much as I can as I grow in my experience with real estate investing. 

JD

Welcome to BP! If you ever have questions about out of state investing, don't hesitate to reach out! 

I got started as an OOS investor back in 2021 and happy to share some of my experiences and lessons learned along the way!