$50k saved. Where to start?

[Vivan Bhalla]

Hi Everyone,

I have been on this forum for quite a while and got all the motivation to start real estate investing from here. I have finally saved around 50k to start investing in real estate. I live in California but I want to invest out of state to get a better deal. My aim is to achieve financial freedom through real estate and make atleast 3000$ with a few real estate investments I make.

If there is anyone who was in the same position and achieved what I am planning to achieve or can help me please let me know. 

Thanks in Advance

[Jim Pellerin]

Quote from @Vivan Bhalla:

Hi Everyone,

I have been on this forum for quite a while and got all the motivation to start real estate investing from here. I have finally saved around 50k to start investing in real estate. I live in California but I want to invest out of state to get a better deal. My aim is to achieve financial freedom through real estate and make atleast 3000$ with a few real estate investments I make.

If there is anyone who was in the same position and achieved what I am planning to achieve or can help me please let me know. 

Thanks in Advance

Can you clarify? You only want to make $3K?

[Vivan Bhalla]

My goal initially is to make 3k not only :)

[Jaron Walling]

@Vivan Bhalla Welcome to BP. This website is a gold mine of information and real life experiences. If you haven't yet try the search icon to find useful information. 

Numbers, market research, numbers, reading investor questions/stories, and numbers. Did I say numbers?... this is everything. 

Build some spreadsheets and calculate what you deem important with an investment property. 

OOS investing is 2X harder than investing locally. That's just my opinion. If you don't agree build your core four "boots on the ground" then circle back to the forums. 

[Eliott Elias]

I can make this possible in Killeen Texas, currently working on listing a distressed home for 55k. You could put a %10 down payment and get the rest funded by HM 

You could do 5 of these projects here, ROI is great.

[Conner Olsen]

Quote from @Vivan Bhalla:

Hi Everyone,

I have been on this forum for quite a while and got all the motivation to start real estate investing from here. I have finally saved around 50k to start investing in real estate. I live in California but I want to invest out of state to get a better deal. My aim is to achieve financial freedom through real estate and make atleast 3000$ with a few real estate investments I make.

If there is anyone who was in the same position and achieved what I am planning to achieve or can help me please let me know. 

Thanks in Advance

 Sounds like you're looking for a cash flow market. I'd research various markets around the country, see which ones have the best long-term growth potential, talk to investors in that market, and come up with a strategy.

[Nick Shri]

Quote from @Vivan Bhalla:

My goal initially is to make 3k not only :)

3k per? 3k per week? per month? per year? per property? If you wish to invest OOS, look at mid-western states. They provide decent CF. Spend some time shifting through posts in get started, you will find many similar 'how do I....' posts and answers.

[Corey Martin]

Quote from @Vivan Bhalla:

Hi Everyone,

I have been on this forum for quite a while and got all the motivation to start real estate investing from here. I have finally saved around 50k to start investing in real estate. I live in California but I want to invest out of state to get a better deal. My aim is to achieve financial freedom through real estate and make atleast 3000$ with a few real estate investments I make.

If there is anyone who was in the same position and achieved what I am planning to achieve or can help me please let me know. 

Thanks in Advance

Hi @Vivan Bhalla! I would suggest identifying a couple of markets you would like to invest in (if not CA) and reach out to agents on the ground! I myself am an agent in Nashville helping investors but if one of my investors are interested in different markets, I can help analyze deals but I won't know the neighborhoods as well as the agents who are in the towns themselves! Build your network, reach out to agents. Conversation and consultations are free and most agents I know are happy to have the conversation with you about goals! Let mw know if you'd like some help finding agents.

[Xavier Vargas]

Hey Vivan, I'm definitely not in the postition to tell you where to spend your money, but I am a mortgage banker at rocket mortgage and I can tell you that with 50k saved you're in a good position. Your goals are something that would have to be laid out in order to really give you a good course of action. I'm licensed in Cali and several other states but regardless if you use this code you'll get put with our V.I.P. team that will apply an interest rate discount as well as a discount on closing costs, but most importantly hundreds of years worth of experience on the team so they'll put you in the best spot based on your goals.

[Taylor Bittner]

Hey Vivan, if you are looking for 3k return monthly, then you would want to invest in a SFH in a good rental market or maybe a lower grade condominium with tenants in place already. It will be harder to find a condominium on your buy box, but not impossible depending on the market, but I will say that Middle Tennessee is showing SEVERAL different areas that contain 1% and better rental properties! I have personally seen HUGE ROI's in this market, and it won't slow down anytime soon!

[Vivan Bhalla]

Quote from @Nick Shri:

Quote from @Vivan Bhalla:

My goal initially is to make 3k not only :)

3k per? 3k per week? per month? per year? per property? If you wish to invest OOS, look at mid-western states. They provide decent CF. Spend some time shifting through posts in get started, you will find many similar 'how do I....' posts and answers.

Per month!

[Vivan Bhalla]

Quote from @Taylor Bittner:

Hey Vivan, if you are looking for 3k return monthly, then you would want to invest in a SFH in a good rental market or maybe a lower grade condominium with tenants in place already. It will be harder to find a condominium on your buy box, but not impossible depending on the market, but I will say that Middle Tennessee is showing SEVERAL different areas that contain 1% and better rental properties! I have personally seen HUGE ROI's in this market, and it won't slow down anytime soon!

 Would love to know more. Have sent you a connection request.

[John Williams]

Great question! I'd recommend getting your feet wet with a single family rental. In my market (Clarksville, TN), $50k can easily serve as a down payment for 1-2 rentals (depending on your financing strategy). If you are interested in investing out of state, I would recommend giving Clarksville some consideration. I like to say that we have a strong balance of opportunities for both appreciation and cashflow. 

My firm specializes in the purchasing, selling, leasing and managing of rental properties here locally. Please let me know if I can be of service to you!

-John

[Scott Allen]

Identify your market and then build your core four. I recommend looking into Columbus, OH. Feel free to reach out if you have any questions about our market here.

[Steven Foster Wilson]

Quote from @Vivan Bhalla:

Hi Everyone,

I have been on this forum for quite a while and got all the motivation to start real estate investing from here. I have finally saved around 50k to start investing in real estate. I live in California but I want to invest out of state to get a better deal. My aim is to achieve financial freedom through real estate and make atleast 3000$ with a few real estate investments I make.

If there is anyone who was in the same position and achieved what I am planning to achieve or can help me please let me know. 

Thanks in Advance

 I think that is great you are ready to jump in. I think you need to identify your market and start talking to lenders to compare rates/terms. I always recommend checking out where huge corporations are moving. They pay people a lot of money to research markets and areas. We have Intel, Amazon, and The Limited, to just name a few. With all of these companies coming here, we are seeing huge growth and a need for more housing. The price-to-rent ratio makes for great investments and Ohio is a landlord-friendly state. 

[Ruchit Patel]

I am in the same boat, working in a bay area and investing out of state. 

In general, for people who are saving money through W2, and going for a cash-flowy buy & hold strategy, turnkeys in the midwest is the way. For specifics, let's connect. 

[Katrina Placido]

Hi, I am on the same boat as you are. I am in the bay area as well and looking to start investing out of state  to maximize m return of investment.   

I am very new this and would like to connect to people on the same boat and people who can help me reach this goal.

Thanks,

Katrina

[Katherine Serrell]

North Carolina is a really hot market to invest in and is still on the upswing. I live in Raleigh and all of of the surrounding counties (Wake, Durham, Johnston, etc) are hot. Apple, Google, Xerox, Fuji film, and Meta are all coming into the area. 5k people a month move to the area which has created a housing shortage, rent spikes, major appreciation (not just due to inflation) and you can still find single family homes for sale on the MLS in good condition for ~250k+ Tenant-landlord laws are landlord-friendly and taxes are low. The Triad (Greensboro, Winston Salem) and Charlotte/surrounding areas are also good and have good units for less than 250k. I have lived in or around Raleigh most of my life. Happy to connect, answer questions, and help in anyway I can.

[Jossalyn Wallace]

I'm located in the Florida Panhandle and we have a great cash flowing short term and long term rental market here. You could take either approach because we are a tourist and military town. However, entry price for something that is going to cash flow you well is likely 350k+, not sure of your budget.  Something to consider! Good luck! 

[Wale Lawal]

@Vivan Bhalla

I recommend you consider Houston, TX!

I personally have rentals here in Houston, the cash-on-cash return and appreciation are steady.

You need a team of local professionals like property managers, contractors, agents etc.

A local Investor-Agent can help shorten your learning curve and save you a lot of headaches as they tend to understand the market better.

You should select a market that will meet your investment goals.

Here are four key reasons why investors purchase rental property out of state:

• Invest in geographic areas with population and job growth is strong.
• Diversify a rental property portfolio with markets that best match your investment strategy.
• Focus on the type of returns you’re looking for, such as maximum cash flow, high appreciation, or total yield over the targeted holding period.
• Operating expenses are lower in markets with fewer regulations, lower property taxes, and landlord-friendly laws.

Finally, as mentioned earlier, it's crucial to build a great network of professionals to help you and to occasionally visit your property yourself.

All the best!

[John Mathew]

You can start out by investing in a SFH that has good rental potential. You can consider Austin, Houston or Dallas.

[Karen Catalona]

hi, I'm also live in SF and want to invest out-of-state. Is there any sort of local meet-up for investors with similar plans?

[Stephen Brown]

Vivan, you should consider investing into syndications and then learning from the GP. Stay on route with them and then join them in the future and become a GP if your goal is to become a larger real estate investor. Message me and I can get you in touch with some folks.

[Jordan Moorhead]

@Vivan Bhalla househack and buy another investment in a different state

[Ryan Kelly]

@Vivan Bhalla in my opinion you are thinking too small. If you focus too hard on cash flow, you’ll pick non-appreciating markets and ONLY make $3k a month with no upside. You should outline a BIG goal and ask yourself if a few cheap properties will help you get there. If not, you need to focus on markets where you can get cash flow and appreciation. You can do it!

[Bud Gaffney]

@Vivan Bhalla. House hack