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Updated over 3 years ago on . Most recent reply
Finding First Project
Hi!
First, thanks for reading this post.
We are looking to get out of our current market by selling and moving to a new location. In part to find a better market for our finances and in part to travel and explore somewhere new.
Currently, in Snohomish County (north of Seattle). We would be getting about 200k in equity and would use up to half for BRRR or flip. We are looking for SFH up to 4 plex. We will not have income sufficient for bank financing. The 100k capital needs to fund the full project.
A bit about us: We have purchased 2 homes throughout our lives (early 30's). Our first was a foreclosure and our most recent was a 203k rehab (type of loan). I also help my family with a 10 unit commercial business (leases, bookkeeping, etc.). We are still newbies but feel these experiences have given us some insight into rentals, remodels, and financing. My husband has worked in positions that require him to be handy and mechanically inclined. Therefore, we will save on some basic remodeling/maintenance.
We have identified the midwest as an area we are most interested in exploring.
- Grand Rapids, MI
- Des Moines, IA
- Omaha, NE
- Columbus, OH
- Rochester, MN/Dubuque, IA/Driftless Area WI
A few questions:
Are there any red flags with these regions?
Is it a mistake to consider the rural areas that are tied to these metros?
We have been looking on craigslist and on county/city auction lists. Of course we see some on zillow, but nearly all of these properties are priced for retail. We skim Facebook Marketplace (the functionality is rough). Are there any other places we should be looking?
All feedback is appreciated!
Most Popular Reply
#2 Multi-Family and Apartment Investing Contributor
- Real Estate Agent
- Columbus, OH
- 6,546
- Votes |
- 5,571
- Posts
#2 Multi-Family and Apartment Investing Contributor
- Real Estate Agent
- Columbus, OH
Originally posted by @Laura Baugh Finley:
Hi!
First, thanks for reading this post.
We are looking to get out of our current market by selling and moving to a new location. In part to find a better market for our finances and in part to travel and explore somewhere new.
Currently, in Snohomish County (north of Seattle). We would be getting about 200k in equity and would use up to half for BRRR or flip. We are looking for SFH up to 4 plex. We will not have income sufficient for bank financing. The 100k capital needs to fund the full project.
A bit about us: We have purchased 2 homes throughout our lives (early 30's). Our first was a foreclosure and our most recent was a 203k rehab (type of loan). I also help my family with a 10 unit commercial business (leases, bookkeeping, etc.). We are still newbies but feel these experiences have given us some insight into rentals, remodels, and financing. My husband has worked in positions that require him to be handy and mechanically inclined. Therefore, we will save on some basic remodeling/maintenance.
We have identified the midwest as an area we are most interested in exploring.
- Grand Rapids, MI
- Des Moines, IA
- Omaha, NE
- Columbus, OH
- Rochester, MN/Dubuque, IA/Driftless Area WI
A few questions:
Are there any red flags with these regions?
Is it a mistake to consider the rural areas that are tied to these metros?
We have been looking on craigslist and on county/city auction lists. Of course we see some on zillow, but nearly all of these properties are priced for retail. We skim Facebook Marketplace (the functionality is rough). Are there any other places we should be looking?
All feedback is appreciated!
I have been purchasing in Columbus, Ohio for 4 years now. It has treated me well. The population and job growth has appreciated my assets nicely.
- Remington Lyman
@Laura Baugh Finley I think it's a good idea to target those rural markets that are tied to these metros, as long as they're in the path of development and you see them growing. Also, your predictions should be supported by evidence (like historical population and job growth).
@Laura Baugh Finley The midwest can offer several financial advantages related to lower costs of living so if you can maintain a high income by working remotely then you can win big. The question becomes how low do you need the cost of living to drop to win, and what lifestyle do you want? Do you like rural living or are you simply attracted by the lower price points? These are all personal preferences but should be considered as a factor. Also, in very rural areas you may lack the food, entertainment, infrastructure (reliable high-speed internet and cell service), and lifestyle that you may want.
I'd start by writing what you want your new life to look like then match that to a few areas that can deliver it, the rest will take care of itself.
- Tim Swierczek
#2 Multi-Family and Apartment Investing Contributor
- Real Estate Agent
- Columbus, OH
- 6,546
- Votes |
- 5,571
- Posts
#2 Multi-Family and Apartment Investing Contributor
- Real Estate Agent
- Columbus, OH
Originally posted by @Laura Baugh Finley:
Hi!
First, thanks for reading this post.
We are looking to get out of our current market by selling and moving to a new location. In part to find a better market for our finances and in part to travel and explore somewhere new.
Currently, in Snohomish County (north of Seattle). We would be getting about 200k in equity and would use up to half for BRRR or flip. We are looking for SFH up to 4 plex. We will not have income sufficient for bank financing. The 100k capital needs to fund the full project.
A bit about us: We have purchased 2 homes throughout our lives (early 30's). Our first was a foreclosure and our most recent was a 203k rehab (type of loan). I also help my family with a 10 unit commercial business (leases, bookkeeping, etc.). We are still newbies but feel these experiences have given us some insight into rentals, remodels, and financing. My husband has worked in positions that require him to be handy and mechanically inclined. Therefore, we will save on some basic remodeling/maintenance.
We have identified the midwest as an area we are most interested in exploring.
- Grand Rapids, MI
- Des Moines, IA
- Omaha, NE
- Columbus, OH
- Rochester, MN/Dubuque, IA/Driftless Area WI
A few questions:
Are there any red flags with these regions?
Is it a mistake to consider the rural areas that are tied to these metros?
We have been looking on craigslist and on county/city auction lists. Of course we see some on zillow, but nearly all of these properties are priced for retail. We skim Facebook Marketplace (the functionality is rough). Are there any other places we should be looking?
All feedback is appreciated!
I have been purchasing in Columbus, Ohio for 4 years now. It has treated me well. The population and job growth has appreciated my assets nicely.
- Remington Lyman
As long as all the metrics fit your criteria and the city is growing then it will just come down to how well you like the city. I would also check the job diversity of the city and how diverse the industries are for a little more stability overall. @Laura Baugh Finley
- Brandon Goldsmith
- Brandon@reafco.com
- 614-963-3340
I would love to interview for the opportunity to sell your home!
Local Omaha Investor, with 100+ wholesale deals and helping grow to 120+ units in the area over the past 4 years. I will only speak for our market but, figure most would apply elsewhere too.
Are there any red flags with these regions? - The first thing that comes to mind are foundations. As with anywhere this can be a very costly oversight. Depending on when the property was built it could have a block or red brick foundation. Avoid red brick if you can and if you must go with it, have someone experienced look at it. At least here in that pricepoint, you are limited to a SFH but, totally doable. I'd be happy to help you find one, should you decide Omaha is the market for you. I'm also happy to answer general questions just drop me a message!
Is it a mistake to consider the rural areas that are tied to these metros? - I would stick to the metro areas if planning on offloading quickly. Which being one of your first flips/investments in the area, you probably are wanting to "realize" the profit from your investment sooner than later. More buyers in the metro areas, Omaha for one is seeing a bit of a tech boom getting new Amazon, Facebook, and Google data centers.
We have been looking on craigslist and on county/city auction lists. Of course we see some on zillow, but nearly all of these properties are priced for retail. We skim Facebook Marketplace (the functionality is rough). Are there any other places we should be looking? - Yes you need to join local Facebook "Real Estate Investors of City name here". They typically have a list of cash buyers, add yourself to that list and start getting deals sent your way. You are looking for wholesalers, typically not realtors, and never market ready properties unless you have a long term buy and hold strategy in a good area that sees a good upside for growth. Again I'm happy to help explain in further detail or to put you in contact with someone I know in the midwest. I have friends in most of the markets you mentioned.
Let me know if I can help in anyway. My wife and myself can definitely relate to where you are and from what it sounds like share your ambition! If you ever visit Omaha for an explorative trip let me know and I'd be happy to show you around! Take care and I wish you the very best in your endeavors!
I invest and live in Columbus OH. Its a great market to do BRRRR investing since rental rates are high and appreciation is continuing at a rapid rate. The best way to find deals in the area would be to find a realtor, wholesaler, someone who has experience with off market deals.
@Laura Baugh Finley that looks like a very good list. obviously I'm biased to my market of Columbus OH, but their are opportunities in the surrounding areas as well. Including Delaware OH, Dayton OH more industrial Tertiary markets. I also Saw you have the quad Cities on there. I've previously lived in Clinton IA, about 40 mins north on the river, and I'd strongly consider that if you were considering the Quad cities. The area was beautiful, good jobs and factories in the area. Obviously with those areas some industries have larger footholds than others, so you probably sacrifice some diversity of industry. But plenty of Big Ag is out there, automotive, heavy truck, tooling, their is a pet food plant if I remember, and perhaps an ethanol refinery as well....again if my memory serves me.
- Michael K Gallagher
- michaelgallagher@teamtruitt.com
- 614-362-2231
Thank you all for your responses! There is so much to learn. I so appreciate you all taking the time to share your experiences and guidance.
@Laura Baugh Finley
I have some experience in Omaha, NE and Rochester, MN if you’d like to chat. I live/lived in both areas for an extended period of time. Maybe I can provide some insight on those markets.
Hi Laura!
I'm an investor in Omaha, NE and a licensed realtor. I am one of 16 agents (out of about 850) in the residential investment division of Omaha's Berkshire Hathaway Homeservices. Omaha is a great market to invest in. I have investors from all over the U.S. tell me we have some of the best numbers they have seen.
Rural areas are hit and miss. I bought a property for $45,000 that rents for $650/month-to me those are great numbers! I think it really depends on which rural areas-on the outskirts of Omaha like Ashland, Greenwood, Plattsmouth, Waterloo, Blair, Ft. Calhoun-these are areas people desire to get out of the city but be close enough to commute for work and then numbers can be great! So long as you get good tenants.
We have one of the lowest unemployment rates in the country-lower than the other cities you've mentioned and almost half of some of those. This alone is a great reason to consider Omaha high on your list. Steady work force=steady rent (in theory). We have great colleges too-and prices around those colleges are decent, usually you can find a 3 bedroom 2 bath home below $200k near the University of Nebraska Medical Center, University of Nebraska Omaha, and Creighton University. Medical/Dental/Law students make great renters!
I'd be happy to discuss more with you and can message you my cell.
Good luck and happy house hunting!