Almost ready to pull the trigger

[JASON CHOI]

Hello BP Community!

I wanted to thank you all for helping me think through all the steps that are required prior to jumping into RE investing. 

Based on my research and your input, I've narrowed down my targets to: Ohio, Georgia, North Carolina and Pennsylvania (where I reside). 

I looked at various factors: 

• Landlord friendly?
• Prone to natural disasters?
• Population growth and its main drivers
• Employment growth and the major employers 
• Unemployment rate
• Median home value
• Median rent
• Rent/Value ratio
• Est. Cash on Cash ratio with some standard assumptions

Based on collected data, my rankings are:

1. OH (Cleveland, Columbus, maybe Cincinnati): affordable, good population and economic growth, 16-20% rent to value ratio
2. NC (Durham, Raleigh and Charlotte): less affordable but high population and economic growth, stable median home values and decent rent to value ratio
3. GA (Atlanta): this is right in between OH and NC. I just ranked OH and NC higher since there are many cities I can invest within one State (since I plan on creating a LLC in the State I will be investing)
4. PA (Philadelphia area): lower population and economic growth, higher unemployment rate compared to other States I researched but there may be less hassle and unforeseen risks compared to out-of-state locations. Additionally, LLC creation/maintenance will be less costly.

Please let me know if I'm thinking through this properly. I would like to pick one state and start investing very soon. 

My next steps are: 

• Form a LLC (name already chosen and confirmed it can be used in above States)
• Set up a business bank account
• Interview property management companies (need some referrals)
• Look into financing in detail (conventional loan vs hard money lending) - need to look at smaller banks that would lend to a LLC perhaps with a personal guarantee
• Visit the site (maybe a property tour)
• Make an offer
• Get an inspection / appraisal
• Close on a deal
• Get a landlord insurance policy + umbrella policy (need some referrals)

As always, I would appreciate any comments, thoughts or feedback. Thank you all!