Out of State Markets and Buying

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Out of State Markets and Buying

Matt VandeleestPro Member
Investor · RI · Member since 2020 · 8 posts · 8 votes

Good afternoon,

So I am starting out, my business partner and I just launch our company. We living in Rhode Island and the market has slim pickings, there are currently 8 multi families for sale in the whole state. MF's are our business focus and we are wondering what strategies ya'll have for out of state investing and what markets are people looking at currently? Also, we are open to just general advice about out of state investing, or books that are a great help. 

Markets that we have looked are FL, KY, TX WI and RI. 

Thanks in advance!

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Simon Ashbaugh
Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
2y

Hey Matt, the Midwest has a lot to offer investors but the best city depends on what you want. For steady income, Cleveland's a great choice with good cash flow potential. On the other hand, if you're looking for appreciation, Columbus is booming with population growth and a strong economy. Also, its best that you have a system in place, your Core 4 will be a big help when investing out-of-state. All the best!

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  • Joe FunariBusiness Member
    Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
    2y

    @Matt Vandeleest Take a look at Dallas/Ft. Worth area for multifamily acquisition. Narrow your search to states that have landlord friendly laws. Texas is among the best in that regard. I help fellow investors buy and sell in this market. I have done it for many years. Look forward to being your boots on the ground here in your search. 

    1Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    There are some great opportunities in the Ohio markets. Many investors from markets where the numbers don't work, are choosing to invest in the midwest because of the yearly returns making more sense in these lower priced markets. Ohio markets show up 3 times in Zillow’s 2024 hottest markets, with Columbus and Cincinnati taking the top 2 and 3 spots. I moved from Florida to start investing in Columbus due to the same reason.

    https://www.zillow.com/learn/hottest-housing-markets-2024/

    [email protected]614-662-1652
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    1Reply
  • Nader Shariff
    Detroit, MI · Member since 2020 · 150 posts · 68 votes
    2y

    I strongly suggest giving a quick peak into the Detroit , Michigan market. 

    0Reply
  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    2y

    Hey Matt, the Midwest has a lot to offer investors but the best city depends on what you want. For steady income, Cleveland's a great choice with good cash flow potential. On the other hand, if you're looking for appreciation, Columbus is booming with population growth and a strong economy. Also, its best that you have a system in place, your Core 4 will be a big help when investing out-of-state. All the best!

    2Reply
  • Matt VandeleestPro Member
    OP
    Investor · RI · Member since 2020 · 8 posts · 8 votes
    2y

    Thanks ya'll for the input, these are great suggestion and I look forward to investigating the midwest. As a form midwestern that is very appealing. 

    0Reply
  • Tanner Lewis
    Lender · Austin, TX · Member since 2021 · 447 posts · 441 votes
    2y

    if you are looking at small multifamily (2-4 units), there are a ton in the Midwest, but it looks like you are looking more at markets with a middle ground between appreciation and cash flow. Surprisingly, many of those markets have a few 5-10 unit deals that you can buy and use a 30-year DSCR loan to finance.

    David Greene wrote Long Distance Real Estate Investing, which I have not read, but I have heard many positive reviews on its content. 

    0Reply
  • Bradley BuxtonBusiness Member
    Real Estate Agent · NV · Member since 2023 · 1k+ posts · 712 votes
    2y

    @Matt Vandeleest 

    Are your goals more for appreciation for buy and hold or short term cash flow? For long term buy and hold or MTR/STR check out the Tahoe Reno, NV area. Landlord friendly, some of the lowest property taxes in the nation and positive job and population growth. All those factors combined with geographically limited building and almost no new housing starts. It's a gem out west.

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Matt Vandeleest Detroit has almost $4 billion in investments slated for the next few years.

    Logical Property Management4.9446 Reviews
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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    2y

    @Matt Vandeleest
    I would recommend taking a look at the Cleveland market. It's great for investing in from out of state since it's landlord-friendly, has a low barrier of entry and cash flows



    [email protected]614-412-4565
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    1Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    2y
    Quote from @Matt Vandeleest:

    Good afternoon,

    So I am starting out, my business partner and I just launch our company. We living in Rhode Island and the market has slim pickings, there are currently 8 multi families for sale in the whole state. MF's are our business focus and we are wondering what strategies ya'll have for out of state investing and what markets are people looking at currently? Also, we are open to just general advice about out of state investing, or books that are a great help. 

    Markets that we have looked are FL, KY, TX WI and RI. 

    Thanks in advance!


     Hey Matt, I am shooting you a text now about Northern Ky (Not Louisville, but very close to Cincinnati)

    [email protected]859-443-4952
    Sam McCormack Realtor
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    0Reply
  • Matt VandeleestPro Member
    OP
    Investor · RI · Member since 2020 · 8 posts · 8 votes
    2y
    Quote from @Bradley Buxton:

    @Matt Vandeleest 

    Are your goals more for appreciation for buy and hold or short term cash flow? For long term buy and hold or MTR/STR check out the Tahoe Reno, NV area. Landlord friendly, some of the lowest property taxes in the nation and positive job and population growth. All those factors combined with geographically limited building and almost no new housing starts. It's a gem out west.


     Bradly,

    My companies goal is to buy and hold for the long term. As we desire to create lasting wealth for our families, and develop great places for people to live.

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2y
    Quote from @Matt Vandeleest:

    Good afternoon,

    So I am starting out, my business partner and I just launch our company. We living in Rhode Island and the market has slim pickings, there are currently 8 multi families for sale in the whole state. MF's are our business focus and we are wondering what strategies ya'll have for out of state investing and what markets are people looking at currently? Also, we are open to just general advice about out of state investing, or books that are a great help. 

    Markets that we have looked are FL, KY, TX WI and RI. 

    Thanks in advance!


    I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

    https://www.biggerpockets.com/blog/core-four-real-estate-tea...

    I invest locally in Columbus, Ohio
    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2y
    Quote from @Matt Vandeleest:

    Good afternoon,

    So I am starting out, my business partner and I just launch our company. We living in Rhode Island and the market has slim pickings, there are currently 8 multi families for sale in the whole state. MF's are our business focus and we are wondering what strategies ya'll have for out of state investing and what markets are people looking at currently? Also, we are open to just general advice about out of state investing, or books that are a great help. 

    Markets that we have looked are FL, KY, TX WI and RI. 

    Thanks in advance!

    Hi Matt, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
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    1Reply
  • Matt VandeleestPro Member
    OP
    Investor · RI · Member since 2020 · 8 posts · 8 votes
    2y

    I really appreciate all the professionals jumping in and making a bit for their particular region, as it causes me to think a bit more about the vast opportunities that are before us. One thing that would be helpful to investors from the professionals is hard data, the statement numbers don't lie, carries weight as long as we do not make them lie. So if you are up for the challenge and so desire, post in our growing thread some hard numbers of your region that provides clarity as to why an out of state invest like myself should choose your region. I think if you were to do that you would have a golden goose on your hands and save people time. I look forward to what y'all bring to the table.

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