Looking for other US expats investing in US real estate

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Looking for other US expats investing in US real estate

Aisha Young
Member since 2020 · 4 posts · 2 votes

Hey all,

I am brand new to the community, so nice to meet you all.

I am currently living in Australia with my partner, and bought our first house here a few months back. The property is for capital growth, but it seems that the cash-flow properties in the US are many factors more lucrative than down under. I have not quite decided where I will be living in retirement, but it can't hurt to have some US income as the dollar is usually strong. What is slowing me down is living far away, and the fear of not seeing what is going on there when selecting and managing an investment property. I have read the BP book on long distance real estate investing, and I even contemplated buying my first house in a different state, but we ended up buying a primary place of residence here.


It would be great to talk to some people who also live abroad and hear how they got started, where to start (choosing a state while avoiding state taxes, what resources to use, if they visit the area they are investing in first, etc.). Is there a group for expats?

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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
6y

I am currently living in Portugal and left my portfolio in the Denver metro area under management.  Honestly, it can be nail-biting sometimes.  I got a text from a tenant with the word FLOOD in it and about came out of my skin.  Called the property manager and he let me know that yes, there was a leak under the sink that had dribbled onto the floor and it was under control.  So those kinds of things happen.  

It's a tough situation to be in.  But you're right - it's all about the property management.

Podcast Guest on Show #244
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  • Alex Deacon
    Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Aisha Young we have many current and past clients that do well here in the states. Some from out of state and some out of the country. There is definitely a recipe for success. I see more fail than succeed so be careful who you choose as your advisors. They should have a hefty resume and lots of references you can speak with 

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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    6y

    I am not aware of an expat group- though I'll bet there's at least a FB group that would do the trick. 

    I think your best bet is to find a reliable turnkey provider. A turnkey company will have all of the services you need in-house; deal analysis, rehab/maintenance and property management. The idea is that through a reliable and experienced turnkey provider, the investment is completely passive, so you don't have to be there if you can't or have no desire to be. 

    Best of luck!

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  • Jordan Sinclair
    Investor · Adelaide, South Australia · Member since 2015 · 136 posts · 78 votes
    6y
    Originally posted by @Aisha Young:

    Hey all,

    I am brand new to the community, so nice to meet you all.

    I am currently living in Australia with my partner, and bought our first house here a few months back. The property is for capital growth, but it seems that the cash-flow properties in the US are many factors more lucrative than down under. I have not quite decided where I will be living in retirement, but it can't hurt to have some US income as the dollar is usually strong. What is slowing me down is living far away, and the fear of not seeing what is going on there when selecting and managing an investment property. I have read the BP book on long distance real estate investing, and I even contemplated buying my first house in a different state, but we ended up buying a primary place of residence here.


    It would be great to talk to some people who also live abroad and hear how they got started, where to start (choosing a state while avoiding state taxes, what resources to use, if they visit the area they are investing in first, etc.). Is there a group for expats?

    Hi Aisha,

    This thread might be helpful:

    https://www.biggerpockets.com/...

     
    1Reply
  • Jonathan Oh
    Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
    6y

    @Aisha Young I have a close friend who is a digital nomad and invests in US real estate. I do know there are ways to avoid certain taxes, but I would talk to your CPA about that. Regarding management, whether you live abroad or in a different state, the challenges will be similar. You will need a good PM to run the operations for you period. If you're going to lose sleep from not being able to see your properties, you may want to pursue other paths. There are pros and cons for every approach. Investing OOS allows you to push your dollars further and get higher returns, but there are challenges that you should be ready to accept if you want that.

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  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    6y

    I am currently living in Portugal and left my portfolio in the Denver metro area under management.  Honestly, it can be nail-biting sometimes.  I got a text from a tenant with the word FLOOD in it and about came out of my skin.  Called the property manager and he let me know that yes, there was a leak under the sink that had dribbled onto the floor and it was under control.  So those kinds of things happen.  

    It's a tough situation to be in.  But you're right - it's all about the property management.

    Podcast Guest on Show #244
    1Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    6y

    @Aisha Young I would advise you start talking to Property Managers to dive deeper into who can do what and where.  Many Property Managers have "Turnkey product" or have the system to help you buy, clean up, rent, and manage something from afar.  The Property Management firm is the key player and you should know that being Property Management is a much bigger deal down under then it is here in the states.  

    Reach out anytime and I can connect you with Property Managers in various investor markets that you can count on to help you or point you in a productive direction that you can trust.   

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61085 Reviews
    WebsiteView Page
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  • Aisha Young
    OP
    Member since 2020 · 4 posts · 2 votes
    6y

    Thank you all for some great ideas. I will look up some investor groups on facebook. Yes, I would have to get used to the idea of never seeing the property, but maybe at least once before I buy. I am still in the researching and learning phase, as I need a bit more capital, but it is great to connect with some of you!

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  • Lindsay Stewart
    Investor · Melbourne, Victoria · Member since 2015 · 203 posts · 58 votes
    6y

    @Aisha Young

    Hi Aisha,

    Welcome to BP!  The US is certainly a great opportunity for cashflow for us Aussies, as getting any form of positive cashflow from our Aussie property is very difficult.  I will never knock our market though, the growth we have had (and yet to have!) has been amazing, but I love the US market and have been investing successfully now for over 7 years!

    It can certainly be done from Australia, just need to make sure to do all your research and find good people on the ground you can trust to help

    Best of luck!  Reach out if I can help at all

    Cheers

    Lindsay

    1Reply
  • Aisha Young
    OP
    Member since 2020 · 4 posts · 2 votes
    6y
    Originally posted by @Lindsay Stewart:

    @Aisha Young


    Hey Lindsay,

    Thank you very much. I certainly do hope to do a bit of research over the coming year to see if it is a good strategy for me. I will keep you in mind if and when I get stuck in my understanding of how to invest in the US.

    Sincerely,

    Aisha

    1Reply
  • Jennifer S.
    Investor · London · Member since 2017 · 160 posts · 82 votes
    6y

    @Aisha Young, I'm just catching up with my notifications and saw your question. I'm in the UK which has a complex situation with US taxes, but if I'm reading this below website correctly you may have an easier time if you are treated as a non-resident Australian for tax purposes. You need to find out how that works and what would lead you to need to bring your US property earnings onshore. This is where I got caught in the UK. They mention that there are things to alleviate double taxation but sometimes those points can be complex. I didn't touch too much on State tax here but happy to discuss separately. I am not aware of a specific Expat group on here but people who have different sets of expertise tend to chime in if they see a post. I'm not a big FB fan so I don't know about that.

    https://www.greenbacktaxservices.com/blog/expat-taxes-explained-filing-taxes-as-american-living-australia/

    Is Foreign Income Taxed Within Australia?

    Non-residents are not obligated to report their foreign earnings to Australia. Temporary residents may have to report foreign earned income but will not have to report earnings from investments or other passive income sources. Residents of Australia are required to report their global income. However, as in the US, Australia has provided mechanisms to help alleviate double taxation.

    1Reply
  • Megean Buck
    Member since 2022 · 1 post · 1 vote
    4y

    @Aisha Young this is an old thread but I'm brand new here and looking for my fellow American ex-pats living abroad who are investing in the US. Have you found a group of others in the same boat or have you followed through with any property purchases? I'm originally from the US but now a dual US-Australian citizen. I have good credit and savings in the US, but I live and work in Australia (income paid in Australian dollars). I'm just getting started and looking to buy cash-flowing rental properties in the US. I've heard that many US conventional lenders reject foreign income. I'm wondering if you or other foreign income earning US expats have had success with conventional loans or if you go the route of DSCR loans? Many thanks!

    1Reply
  • Jason Wu
    Member since 2025 · 19 posts · 2 votes
    1y

    I'm new to BP but not new to investing in the USA. I'm based in Perth. I currently own properties in Detroit, Miami, Miami Beach and Fort Lauderdale. I self-manage all my doors in Florida but I use a property manager for my Detroit portfolio. I own four of my SFH in Bagley (48221) along with my other ones around Detroit metro. I was wondering how you went with your investing journey in the USA? I'm hoping to connect with others now I've joined BP. I do all my own property searches, inspections, book work etc. It's not easy work but I enjoy finding the 'gems'. Feel free to reach out.

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