Multi Family Investing Out of State

[Erik Martin]

Hey everyone, 

My name is Erik and I have been a lurking on Bigger Pockets for awhile, learning and reading about real estate. I am finally in need of some guidance, so I decided to make my first post. Me and my business partner live in Denver, CO. We both have not invested in real estate, so this will be our first deal. We want to start off by buying a 4 to 5 unit multi family complex.We have saved up, and our budget is 500-550K. The Denver market is crazy right now and out of our budget, so we are looking to buying a multi family unit out of state. I have a few questions I wanted to ask you guys.

1) How do you guys do your research on what State/City has a good market for this type of investment? 

2) Do any of you guys have insight or suggestions on a market that is good for 4 to 5 unit multi family investing?

3) Also, do you guys have any words of advice or personal experiences to share when buying real estate out of you home state? 

Thanks so much in advance for all your wonderful advice, 

Erik   

[Lane Kawaoka]

@Erik Martin

1) How do you guys do your research on what State/City has a good market for this type of investment?

Birmingham, Atlanta, Indianapolis, St Louis, Kansas City, Memphis, Little Rock, Indianapolis, Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.

2) Do any of you guys have insight or suggestions on a market that is good for 4 to 5 unit multi family investing?

I would stay under 4 units cause anything more you move into realm of commercial lending... which does not make sense unless you are over 50-100 units.

3) Also, do you guys have any words of advice or personal experiences to share when buying real estate out of you home state?

I started in 2009 in seattle then when out of state to the midwest in 2012 doing turnkeys. It was a great way to get started. Let me know if I can help.