New to Investing Looking for Out of State Deals

[Colina L.]

Hello everyone!

I am new to real estate investing as well as to BP. I'm currently in Montana and the local market here is tough to find property yielding decent returns. I'm looking to get started, and after much research..places like Cleveland/Cincinnati OH keep coming up as areas where housing is low and rental return is high. 

I'm hoping to make some connections with people who live in these areas (or even anywhere). I've been looking at the Marketplace ads on BP...some of them seem too good to be true. What do I need to know about these deals? I bought my first house 3 years ago, so I know a little about the lending process..but other than that I am definitely a newbie and looking to get as much help/insight as possible.

Thanks!!

Thank you!!

[May Emery]

@Colina L. You might be able to find things in your own back yard . Consider mailing to people who aren’t in every other investor’s sites. Absentee Owners have been popular for a long time, and are apparently still somewhat effective (people are still mailing to them) but they are getting multiple offers to buy their home. It's hard to stand out.

The same will hold true in the markets you mentioned like Cleveland because there are a lot of investors there as well.

There are some owner-occupied segments with people who share motivating factors for selling their home.

Seniors with Long-time Ownership: often ready to downsize or transition to assistance.

Homeowners with Low Financial Stability Scores (FSS): Struggling financially and likely ready to cash in on their asset.

Both these categories have additional advantages in that they probably don’t haven’t been updated and may have deferred maintenance. They won’t be expecting the same money as their neighbors with the shiny new kitchen and fresh paint.