I NEED ADVICE!! First Out of State Rental Purchase

Buying & Selling Real Estate
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I NEED ADVICE!! First Out of State Rental Purchase

Asbery Rainey
Specialist · Los Angeles, CA · Member since 2020 · 8 posts · 3 votes

I’m looking for property to purchase in 2023.

130k Max. Residential. Commercial. Multiplex.

I want a good cash flowing opportunity to hold.

I’ve been looking at landlord friendly states:

TX,AL,AR,MI,VA,MO,GA,IN,OH


Mountain States:

ID,MT,UT,WY,NM,AZ

I want to minimize my search.
What are some of these states that have worked well for you?

In any of these states does anyone know:

A good property management company?

-or have an experience where a property management wasn’t needed on an out of state rental?

A good Contractor?

An attorney?


2Reply
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Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Asbery Rainey:

I’m looking for property to purchase in 2023.

130k Max. Residential. Commercial. Multiplex.

I want a good cash flowing opportunity to hold.

I’ve been looking at landlord friendly states:

TX,AL,AR,MI,VA,MO,GA,IN,OH


Mountain States:

ID,MT,UT,WY,NM,AZ

I want to minimize my search.
What are some of these states that have worked well for you?

In any of these states does anyone know:

A good property management company?

-or have an experience where a property management wasn’t needed on an out of state rental?

A good Contractor?

An attorney?



 Hey Asbery, this will depend on what you're after. Looking for cashflow? Look into Cleveland, its got good cashflow potential with appreciation happening as well.

Looking for appreciation come to Columbus, there are still 1% deals, but the more attractive part is the population growth and other economic drivers!

4Reply
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  • Arsen Atanasovski
    Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes
    3y

    Just FYI MI is not a landlord friendly state, just to make it clear and to easily identify states that are friendly or non friendly just look at the majority leaders and their party this will give you a good calculation.
    Blue = Tenants friendly 

    Red = Landlord friendly

    2Reply
  • Lauren Ruppert
    Rental Property Investor · Member since 2019 · 67 posts · 29 votes
    3y

    Asbery,   I sent you a connect with lots of stuff in it.  

    0Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    3y

    @Asbery Rainey I have been an out of state real estate investor for about 15+ years now.  The critical piece to the equation here is where do you know someone?  As an out of state investor you may never even SEE your property.  That's a lot of trust to put into a complete stranger.  So if you know someone in X city....but Y city shows better "numbers"....go with X city.  Choose the city that has someone in your trusted network over profits.  That will give you better returns in the long run.  I hope this makes sense how I am describing it.

    2Reply
  • Kenny Kuramoto
    Member since 2022 · 69 posts · 20 votes
    3y
    Quote from @Asbery Rainey:

    I’m looking for property to purchase in 2023.

    130k Max. Residential. Commercial. Multiplex.

    I want a good cash flowing opportunity to hold.

    I’ve been looking at landlord friendly states:

    TX,AL,AR,MI,VA,MO,GA,IN,OH


    Mountain States    :

    ID,MT,UT,WY,NM,AZ

    I want to minimize my search.
    What are some of these states that have worked well for you?

    In any of these states does anyone know:

    A good property management company?

    -or have an experience where a property management wasn’t needed on an out of state rental?

    A good Contractor?

    An attorney?



    To be honest, I don't think anyone is going to tell you straight up invest here because I earned a lot of money here. Your going to have to do the homework youself and pick which type of area works for YOU. Do you want Cashflow vs Appreciation, Do you care about having the ROI come after 3-5 years. There is so much to think about and what to look for. Which of those places has cities grow in population and job growth. Stuff like that. But to shortly answer your question I'm looking in GA and OH. Some cities in Ohio isnt growing a lot but is cash flowing a little bit more. For example Cleveland won't appreciate and has been on a decline in population these past couple years. BUT it easier to find a cash flowing property in a duplex there. Cincy and Columbus is growing with jobs but homes are more expensive. Atlanta is growing super fast. So find places yourself. Do some research. its good practice :)

    1Reply
  • Mike Hasson
    Specialist · Columbus, OH · Member since 2019 · 110 posts · 102 votes
    3y

    Those are literally all over the map lol. I'd recommend narrowing down to one place and start building those connections. This post might get you a PM in Ohio, a RE agent in MI, etc etc. Which probably won't be helpful. 

    I was in the same boat as you, and picked Ohio. It has a great point of entry and a variety of markets to choose from depending on specific goals.

    I'd also recommend adding an investor friendly inspector to your list, since they'll be your eyes and ears on the ground and will be able to help you fully assess condition before you buy.

    2Reply
  • Jon KellyPro Member
    Investor · Bethlehem, PA · Member since 2016 · 929 posts · 951 votes
    3y

    @Asbery Rainey only 15 states??? Don't you think that is too limiting? As an investor in PA and MA I'm offended my states didn't make your top 15. :) 

    In reality you need to better define your criteria with what you're hoping to accomplish. Narrow it down to a select few and then pose this question. 

    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y

    130k is not that much anymore, even in the Midwest this will buy you a barely a small single family in a C- neighborhood. The national median home price is over 400k, so you are looking for something that is less than a third of that.

    Maybe consider something a little more outside of the box, for example be a hard money lender to a flipper or investor..

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Asbery Rainey:

    I’m looking for property to purchase in 2023.

    130k Max. Residential. Commercial. Multiplex.

    I want a good cash flowing opportunity to hold.

    I’ve been looking at landlord friendly states:

    TX,AL,AR,MI,VA,MO,GA,IN,OH


    Mountain States    :

    ID,MT,UT,WY,NM,AZ

    I want to minimize my search.
    What are some of these states that have worked well for you?

    In any of these states does anyone know:

    A good property management company?

    -or have an experience where a property management wasn’t needed on an out of state rental?

    A good Contractor?

    An attorney?



     Hey Asbery, this will depend on what you're after. Looking for cashflow? Look into Cleveland, its got good cashflow potential with appreciation happening as well.

    Looking for appreciation come to Columbus, there are still 1% deals, but the more attractive part is the population growth and other economic drivers!

    4Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Kenny Kuramoto:
    Quote from @Asbery Rainey:

    I’m looking for property to purchase in 2023.

    130k Max. Residential. Commercial. Multiplex.

    I want a good cash flowing opportunity to hold.

    I’ve been looking at landlord friendly states:

    TX,AL,AR,MI,VA,MO,GA,IN,OH


    Mountain States    :

    ID,MT,UT,WY,NM,AZ

    I want to minimize my search.
    What are some of these states that have worked well for you?

    In any of these states does anyone know:

    A good property management company?

    -or have an experience where a property management wasn’t needed on an out of state rental?

    A good Contractor?

    An attorney?



    To be honest, I don't think anyone is going to tell you straight up invest here because I earned a lot of money here. Your going to have to do the homework youself and pick which type of area works for YOU. Do you want Cashflow vs Appreciation, Do you care about having the ROI come after 3-5 years. There is so much to think about and what to look for. Which of those places has cities grow in population and job growth. Stuff like that. But to shortly answer your question I'm looking in GA and OH. Some cities in Ohio isnt growing a lot but is cash flowing a little bit more. For example Cleveland won't appreciate and has been on a decline in population these past couple years. BUT it easier to find a cash flowing property in a duplex there. Cincy and Columbus is growing with jobs but homes are more expensive. Atlanta is growing super fast. So find places yourself. Do some research. its good practice :)


     I try to go for more appreciation than cash flow. Cash flow will come once rents appreciate and you pay down the mortgage

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    3Reply
  • Erin Dorsey RobinsonPro Member
    Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes
    3y

    @Asbery Rainey I would be glad to talk with you and help you narrow down some of this.  I do have some good contacts in my area and I'm glad to share. My area is also not super friendly to landlords, but if you know a good attorney, which I do, things get a little friendlier lol! Feel free to shoot me an inbox if you are still looking for answers and information. Wishing you all the best!

    [email protected]
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    3y
    Quote from @Asbery Rainey:

    I’m looking for property to purchase in 2023.

    130k Max. Residential. Commercial. Multiplex.

    I want a good cash flowing opportunity to hold.

    I’ve been looking at landlord friendly states:

    TX,AL,AR,MI,VA,MO,GA,IN,OH


    Mountain States    :

    ID,MT,UT,WY,NM,AZ

    I want to minimize my search.
    What are some of these states that have worked well for you?

    In any of these states does anyone know:

    A good property management company?

    -or have an experience where a property management wasn’t needed on an out of state rental?

    A good Contractor?

    An attorney?


    Saw you had Ohio on your radar. I assume you're looking at Cleveland than? Most out of state investors looking at Ohio are buying in the Cleveland market.

    Thing is, Cleveland's a tricky market. I've made millions investing here. I've helped others do the same. However I've seen a lot of people lose money in this market through mistakes and not being prepared.

    The very first thing anyone who's looking at Cleveland should do is get a feel for the varying neighborhoods in Cleveland. Google what it's like to be a real estate investor in Cleveland and check out free resources provided by Cleveland investors such as The Ultimate Guide to Grading Cleveland Neighborhoods.




    1Reply
  • Scott AllenBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
    3y

    @Asbery Rainey I can send you some referrals for Columbus, OH!

    [email protected]614-698-1227
    Reafco - Columbus, OH
    WebsiteView Page
    2Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    For property managers:

    Even if someone give you a referral, what meets their expectations, may not meet yours.

    In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

    It's often a case of not doing enough research, as they don't know what they don't know!

    Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

    So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

    EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

    This also leads owners to ASSUME simpler is better when it comes to management contracts.

    The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

    We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

    We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

    https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

    We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

    EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

    P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

    Please send us any feedback via email, as we do not use the DM feature here.

    [email protected]248-209-6824
    Logical Property Management4.9451 Reviews
    WebsiteView Page
    0Reply
  • Asbery Rainey
    OP
    Specialist · Los Angeles, CA · Member since 2020 · 8 posts · 3 votes
    3y

    @Andrew Postell

    Thank you

    1Reply
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