Out of state investments

[Gabriel Almendariz]

Hello, 

I'm a brand new investor in CA.  I've realized i do not have the working capital to currently invest in CA, since all the hard money lenders I've talked with require 20-35% down with a new investor like myself.  That being said how do out of state investors go about choosing a market?  I've been looking into Dallas, Texas and Cleveland, Ohio.  I'd also like to know if out of state investors try to locate a property manager before acquiring deals or is that something you figure out as you go? Any insight you have will be helpful.

Thank you for your time,

Gabriel 

[Jeffrey Allen]

@Gabriel Almendariz

I invest in Ohio, primarily Columbus.  If I read your thread right, 15K isn't going to get you much if anything multifamily in Columbus either.  You might get into the Linden or Hiltop area, but you will need to make sure you have the right property manager that can support that type of tenant base.  I know of one if you're curious.

With that money, I'd look into Dayton/Toledo.  They aren't big cities and the population is declining but rental market is fairly solid.  You can get into an "ok" property with good cashflow that could set you up.  

Alternatively, you can partner with people dealing out of state that is in on the right deal.  It could enable you to leverage and build more equity faster with better appreciation while also delivering a solid cashflow.

Finally, I would recommend you see TONS of houses locally.  Know what to look for an be sure to ask your agent to take pictures and videos of the things you want to see.  If they miss something send them back.  Familiarize your self with the tenant laws in the state and some of the building code.

Happy hunting