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Updated over 1 year ago on . Most recent reply
22 Years Old, Looking For My First Deal Out of State
Hello! I am looking for any advice on acquiring my first property. I have to invest out of state, since my local market (Los Angeles) is far out of my budget. I am very interested in Indianapolis as my market. I am looking for a small multi-family ideally but single family would work too, and for my first deal(s) cash-flow is my main goal, as I want to supplement my income (I know I am asking for a lot with that in today's market). I am hoping to get a BRRR deal going, as I would like to get some/all of my money back out to re-invest. Any Indy investors have any advice?
My annual income is about 45-50k, I have 70k liquid cash and about 20k in retirement accounts. Is this a decent financial situation to be in, when looking for a first property? 0 debt as well.
Any advice/mentorship is greatly appreciated! Thanks for taking the time to read this!
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- Rental Property Investor
- Ellsworth, ME
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Deep value add for your first investment that is also out of state is FAR, FAR easier said than done. You have $70k cash. You can burn through that in a hurry. There's a very real risk that you run out of cash before the project is finished. At that point, you are stuck with a property that can't rent, likely can only be sold for a loss, and you are out of cash.
I get the sense that everyone who talks about "building your core 4" or how simple it is to invest out of state either has not done it or has something to sell you. It's hard, expensive, stressful and it sucks. It can be lucrative, but first time investors without a serious cash reserve or high income should not try to pull off a BRRRR 1000+ miles away from home. Full stop. Don't do it.
Don't try to kill it. Find a base hit property and get started. And for the love of everything, get on a plane and visit the market that you are going to invest in. We have invested out of state (Oregon and Maine while living in Texas). I have nothing to sell and would be happy to help if you think that I can be a resource. Shoot me a message if you have any specific questions.