Newbie investor - local market too expensive...

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Newbie investor - local market too expensive...

Roddy Walker
Rental Property Investor · Salem, OR · Member since 2019 · 22 posts · 9 votes

Just got preapproved for 275k FHA loan in Oregon. My original goal was to do a house hack until I could rent the property out completely in my local market. The market in Portland and Salem area seems very inflated and overpriced for doing a good buy and hold strategy that could provide me with a strong monthly cashflow. Should I consider investing in a long distance market for my first investment property? I'm currently studying more about long distance real investing and am really considering it but would love to hear some tips/advice from the BP community!

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Joseph Crunkilton
Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
6y

@Roddy Walker

If you're looking to break into some OOS markets I'd recommend checking out @Zach Lemaster over at Rent to Retirement. They provide high quality turnkey properties that maximize cash flow and appreciation. 

I was in the same place as you a few months ago. Local properties were very expensive and the returns I was looking at didn't justify the risk. This led me to Zach. I got a high quality rental with a tenant in place for an affordable price. Quick, easy closing and now I'm into more active investments. 

Now, Zach has been a mentor to me helping me establish my own business and getting into more active investments. I'd recommend giving him a call and seeing what they can do for you. 

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  • Chris Thomas
    Rental Property Investor · Central Kentucky · Member since 2019 · 67 posts · 43 votes
    6y

    I have had a property at distance, and so long as you have a solid property management company, you should be fine. And don't skimp out, they are the ones who will make this experience great or awful.

    1Reply
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Roddy Walker

    I can appreciate the market your in.  My daughter lives near Portland on the Washington side.  She wants to get involved in real estate as she’s been watching me for the past few years.  That market is tough so I’m going to find her a property near me in Illinois.  People complain about Illinois and there’s plenty to complain about, but rents are pretty healthy.  Even with the higher property taxes they still cash flow pretty good.  Definitely look at some other markets.

    1Reply
  • Roddy Walker
    OP
    Rental Property Investor · Salem, OR · Member since 2019 · 22 posts · 9 votes
    6y

    @Chris Thomas Great point thanks for the info!

    0Reply
  • David Krebsbach
    Real Estate Agent · Dallas, TX · Member since 2020 · 28 posts · 28 votes
    6y

    I happen to be on the long-distance side of the fence. As an investor and licensed agent in the “Great State of Texas” I’ve had quite a number of investors wanting to invest in Texas. If doing so (or anywhere out of your market area), there are two mandatory things you need. 1) a good investor-friendly agent that knows exactly how to find the right properties to meet your investment objectives, and 2) a good property management company to screen for good tenants and keep it occupied. If you get these two things you’ll make money and have a more rewarding investment experience. Not to mention, you can learn from the experts.

    1Reply
  • Joseph Crunkilton
    Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
    6y

    @Roddy Walker

    If you're looking to break into some OOS markets I'd recommend checking out @Zach Lemaster over at Rent to Retirement. They provide high quality turnkey properties that maximize cash flow and appreciation. 

    I was in the same place as you a few months ago. Local properties were very expensive and the returns I was looking at didn't justify the risk. This led me to Zach. I got a high quality rental with a tenant in place for an affordable price. Quick, easy closing and now I'm into more active investments. 

    Now, Zach has been a mentor to me helping me establish my own business and getting into more active investments. I'd recommend giving him a call and seeing what they can do for you. 

    5Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votes
    6y

    @Joseph Crunkilton Thank you for the shout out!

    @Roddy Walker

    We've helped many investors just like yourself build a successful rental portfolio across numerous cash flow markets when their local market is too expensive.  It's all a numbers game, and the most successful investors invest in the markets where they get the best returns!

    Please let me know if you have any questions on anything. I typically like to start with an initial phone call to discuss your investment goals/experiences, answer any questions you have, and tell you all about what our company has to offer. Please let me know if this is something you would like to schedule.

    Also for your reference, here are some other forum discussions from investors that have worked with us in the past like Joseph. I'm sure you'll find this informative. Looking forward to hopefully connecting in the near future!

    https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

    https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

    https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

    https://www.biggerpockets.com/users/ZacharyCole/references

    https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

    https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

    https://www.biggerpockets.com/users/ZacharyCole/references

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    5Reply
  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    6y

    @Roddy Walker I see a lot of investors in higher-priced markets looking out of state for cash flow, even during corona. What do you consider strong cash flow? Happy to overview the norms in OKC for you. Also happy to share OOS investing experience. Good luck!!

    0Reply
  • David Krebsbach
    Real Estate Agent · Dallas, TX · Member since 2020 · 28 posts · 28 votes
    6y

    Forgot to mention in earlier post, if investing out-of-state, you might want to consider prettier houses (which appreciate better) with less repair/maintenance issues than ugly houses (which cash flow better). Otherwise, you'll be even more heavily dependent on a good property manager to do repairs. This leads into the topic of investment goals and objectives. Most new investors are taught it's all about cash flow. Well, that requires more in-depth thought. I always ask my investor clients, "What will you do with the monthly cash flow? Do you need it to pay bills or something? If not, you might be able to generate more chunks of cash by investing in higher quality properties, in better areas, with better appreciation potential." Eventually, everything transforms into cash (cash flow, tax savings, debt reduction and appreciation). This happens either in small increments (monthly/annually), or in big chunks (when you refinance or sell). Question becomes, "Do you prefer small cash flow monthly or bigger chunks of cash periodically?" There is no single right answer - usually comes down to you investment goals and objectives. Ask yourself, "How do you want real estate investments to change your life?"

    Food for thought...

    1Reply
  • Sam Abazari
    Lender · Chicago, IL · Member since 2020 · 53 posts · 30 votes
    6y

    Hi @Roddy Walker! Like most have mentioned, a lot of investors do pick the long distance investing option especially if they themselves live in some of the more expensive states, or simply feel like other markets have more potential for home value appreciation. For example, here in Massachusetts we see quite a lot of people investing from NY / NJ due to reasonable proximity. That said, the important part is really to spend the time to find a trustworthy property manager whose goals are aligned with yours! I'd invest some time in actually traveling to the state and meeting the team as well. If you happy to be interested in the market in MA, feel free to connect and I'd gladly share my insights with you. Good luck! 

    0Reply
  • Julius Swolsky
    Real Estate Broker · Newport Beach, CA · Member since 2017 · 6 posts · 7 votes
    6y

    @Zach Lemaster

    I would be interested in speaking with you as I am looking to invest out of state.

    Best,

    3Reply
  • Roddy Walker
    OP
    Rental Property Investor · Salem, OR · Member since 2019 · 22 posts · 9 votes
    6y

    @Kiera Underwood That would be great! Let’s connect and discuss it further.

    0Reply
  • Roddy Walker
    OP
    Rental Property Investor · Salem, OR · Member since 2019 · 22 posts · 9 votes
    6y

    @Zach Lemaster Sounds great let’s setup a call. Would love to learn more about your you and your team.

    3Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    RE is already difficult and full of land mines. It will be 10 times more difficult from afar. If you really want to invest in RE......move elsewhere.

    0Reply
  • Hank Autrey
    Real Estate Agent · Dallas, TX · Member since 2020 · 1 post · 0 votes
    6y

    @David Krebsbach

    1.) What Texas markets do you like right now other than Dallas?

    2.) How do you choose a good property management company? Referrals?

    0Reply
  • David Krebsbach
    Real Estate Agent · Dallas, TX · Member since 2020 · 28 posts · 28 votes
    6y

    @Hank Autrey In addition to the Dallas/Ft Worth area, Austin and San Antonio are good locations, too. Houston is more spotty. At times it’s good in certain areas. Dallas specifically (and Texas in general) has a very stable economy. The north Dallas suburbs have a long growth & appreciation record, and money follows money. Several additional areas offer stronger cash flow, but lower appreciation. Depends what you prefer. If interested, I have a “discussion map” that explains a lot more. 

    0Reply
  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    6y

    @Roddy Walker happy to talk about OKC anytime!

    0Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votes
    6y

    @Roddy Walker @Julius Swolsky

    I sent both you a PM with my calendar link to set up a time to connect.  I look forward to discussing your RE investing goals, and to explain all that our company has to offer!

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    0Reply
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