Investment in Longterm Rentals

[Caden Thompson]

BP forum, 

I am looking to get into my first investment and have a few different strategies in mind that I'd appreciate some input on. 

I am currently a college student, but have enough capital to make my first investment in something out of state (live in Bay Area CA). I have been interested in finding something in the midwest or Texas because the RTP ratios are better. I am hoping someone has some insight into the out of state investment process because I want to see if this is something that I could see myself getting into. 

If I wasn't to go out of state I would probably wait to purchase anything because I don't have the capital available to invest in my area. I could look outside of my immediate area and find something in Northern CA, but it's very difficult to create cash flow in the California long term rental market. I see the potential in something like a BRRR in CA, but I don't currently have the flexibility to do something like that.

Thanks for the input I greatly appreciate any ideas! I would love to connect with investor friendly agents throughout the country, it may not be the right time for me just yet in certain markets, but when it is I'm going to come in swinging. 

[Caden Thompson]

Quote from @Joshua Amezcua:

I was in the same boat as you a few months ago, needing to decide whether to go out of my market/backyard due to higher prices or go out of state. I opted to try both, but still working on my strategy for local. What helped me make the decision was speaking to investor agents in my own area and then reaching out to agents in a few markets I was zoning in on. I did a ton of research before calling, but made sure to not over-analyze and paralyze myself from taking action.

I would start there. Be ready to share about yourself, your goals, a little about your finances, and your ideal buy-box. Ask to have them funnel a few potential listings your way and then get on the phone with them to go over some basic numbers. Also, make sure you really vet the agent. Just because they pop up in the "investor friendly agent" search here on BP doesn't mean they're a good fit for you. Make sure they can recommend contractors, PMs, etc... A bad agent can really impede your growth. Ask them to "give you the training wheels experience". Either they're good with it, or they're not.

Good luck to you Caden!

Thanks for the insight Josh, best of luck to you!