Looking for advice on OOS investments

[Marcelle Abel]

Hey all! I currently own two STR's but would like to explore the option of a LTR OOS. I live in OR where the price point is far more than I'd like to spend as I'd love to potentially purchase with cash if the price is right. I'm zeroing in on AL, OH and IN as they seem to have some landlord friendly rules in place + the affordability factor. For those of you who have experience in these states, any particular cities/towns you have had success with and any advice? Also, any investors/agents in these areas? Thank you so much!

[Nicholas L.]

@Marcelle Abel

Just curious - a few questions / reactions back at you based on some things in your post:

-If your STRs are successful, why not keep doing that?  What interests you about LTRs?  (I'm not saying you shouldn't diversify, just genuinely asking.)

-Are there any markets in Oregon that have a lower price point, even if they're 2-3-4 hours away from you?  I continue to believe that "home court advantage" is worth something.  Yes, you can buy a random property in Ohio and net $100-200 a month if you want, but you're entirely reliant on people thousands of miles away.  If you have the cash for something in the midwest it seems like you have a good amount saved up.

-You said "purchase with cash." The only reason to purchase with all cash is if that gets you a better deal where you can then force appreciation and refinance. Otherwise, you're going to have a bunch of cash sitting in a house that may only appreciate a little when you can get a better return with treasury bonds or a savings account. If you can buy with a strong offer all cash that gets you a good property, do a light rehab, boost the ARV, and refinance - like a BRRRR basically - then OK. But otherwise financing may be better.

I invest in PA, similar to OH in terms of age of properties, tenant base and some other factors. I have two LTRs here, a SFH and a duplex. Lower purchase price and strong rent to buy ratios, but LOTS OF CAPEX because the properties are so old =)

Hope this gives you some things to think about.