Where to invest out of state?

[Spencer Wardwell]

I have $50K set aside to invest in real estate. As I live in LA, I'm looking to be a remote investor, looking at more affordable markets. I'm only interested in buy-and-hold properties for rental income (and appreciation, of course). I'm thinking the move might be to get two properties, around $125K each, and put 20% down on both properties, instead of just one. Looking for suggestions as to the markets I should be looking into, thoughts on turn-key investing, and any other advice you might have! Thank!

[Ritch Bonisa]

I'm in Indianapolis and it has been a very good remote investment market.  

[Nicholas Crippen]

Kansas City is a great place to invest in real estate. The B- to B+ properties especially have good returns and appreciation.

[Gordon Cuffe]

You might want to keep the max purchase price at 100k or less. That would take 20k plus fees each. That easily could be 24k per property. You can find many good properties at 100k or less in many midwest locations. 

[Com M.]

I purchased a duplex in Indianapolis for 90k that already had both sides rented for $1250.  Not a killer deal, but you can wrap it up for $25k down and do 2 of them.  Two to start, a great kickstart to a cashflow portfolio. 

[Grant Anderson]

Make sure you keep some type of a reserve when buying rental properties.

[Dalton Osmanski]

Find a place you are comfortable owning properties in first then sort those for locations that have increasing population trends, positive job growth, and planning and development trends. There are so many great markets to invest in and your best bet might even be to partner with someone in that local area which can be easily done through networking. I have connections in Phoenix if you're interested.

[Eddie VanBuskirk]

I would check out KC Metro Homes. They really specialize in that price range for buy and hold properties and those properties are going to be in good neighborhoods.  some other turn key providers in Kansas City have cheaper houses but they are in lower end neighborhoods.  A lot of California investors come to Kansas City because the affordability and returns your investments provide you.  I hope this helps PM me if you would like Todds number at KC metro homes.  

 @Todd Crippen 

[Andrew Syrios]

The South and Midwest are the best for cash flow investing. Except Kansas City. Kansas City totally sucks and there's totally no reason to ever buy in Kansas City ever. 

That being said, if you are going to invest out-of-state, be very careful. I wrote an article on it a while back you might find helpful: https://www.biggerpockets.com/renewsblog/2014/12/23/investing-out-of-state-essential-items-to-vet/

[Roshan K.]

Originally posted by @Andrew Syrios:

The South and Midwest are the best for cash flow investing. Except Kansas City. Kansas City totally sucks and there's totally no reason to ever buy in Kansas City ever. 

That being said, if you are going to invest out-of-state, be very careful. I wrote an article on it a while back you might find helpful: https://www.biggerpockets.com/renewsblog/2014/12/23/investing-out-of-state-essential-items-to-vet/

 Can you explain? A few people above you mentioned Kansas City was one of the best, and you say it sucks. Curious to know why the difference in opinion...

[Andrew Syrios]

Originally posted by @Roshan K.:

Originally posted by @Andrew Syrios:

The South and Midwest are the best for cash flow investing. Except Kansas City. Kansas City totally sucks and there's totally no reason to ever buy in Kansas City ever. 

That being said, if you are going to invest out-of-state, be very careful. I wrote an article on it a while back you might find helpful: https://www.biggerpockets.com/renewsblog/2014/12/23/investing-out-of-state-essential-items-to-vet/

 Can you explain? A few people above you mentioned Kansas City was one of the best, and you say it sucks. Curious to know why the difference in opinion...

 Sorry, it's a joke. I live in KC and the market's getting a wee bit saturated for my preference.

[Roshan K.]

Originally posted by @Andrew Syrios:

Originally posted by @Roshan K.:

Originally posted by @Andrew Syrios:

The South and Midwest are the best for cash flow investing. Except Kansas City. Kansas City totally sucks and there's totally no reason to ever buy in Kansas City ever. 

That being said, if you are going to invest out-of-state, be very careful. I wrote an article on it a while back you might find helpful: https://www.biggerpockets.com/renewsblog/2014/12/23/investing-out-of-state-essential-items-to-vet/

 Can you explain? A few people above you mentioned Kansas City was one of the best, and you say it sucks. Curious to know why the difference in opinion...

 Sorry, it's a joke. I live in KC and the market's getting a wee bit saturated for my preference.

 Dooh, didn't even read where you were from. Had a blonde moment lol

[Daniel Hyman]

Spencer Wardwell In my network, at that price point, I am seeing a trend toward the Midwest (KC, Indy, Cleveland) and the South (Houston, Memphis, Jacksonville)

[Matt K.]

KC is getting more difficult.... BUT if you like numbers you can find a TON of info on this site about where to look. If you hunt by zip code and use zillow est for rent it's pretty close then you can cross reference with what's actually for rent (craigslist, zillow, hotpads, property managers). Once you get a hang of the zip codes and where to look you can get pretty efficient at it. 

I actually found KC by looking up what cities had high rents and then the average price per home. Word of caution, if your starting to look out of state things move a LOT SLOWER than your used to here in CA, be patient and wait for the deals and don't be afraid to be aggressive/walk if the numbers don't work.

[Vivek Khoche]

@Spencer Wardwell- Start 50 miles in each direction and see how far you can go to find what is best for you. If you end up 2000 miles away from where you are that is fine too as long as you understand what you bought. I usually offer to sell similar house that I want to buy.

Good Luck Investing

Vivek

[Tom Ott]

Originally posted by @Spencer Wardwell:

I have $50K set aside to invest in real estate.
As I live in LA, I'm looking to be a remote investor, looking at more affordable markets.

I'm only interested in buy-and-hold properties for rental income (and appreciation, of course).

I'm thinking the move might be to get two properties, around $125K each, and put 20% down on both properties, instead of just one.

Looking for suggestions as to the markets I should be looking into, thoughts on turn-key investing, and any other advice you might have!

Thank!

That price is very attainable if you look into the right market. Keep your eyes on the Midwest. Rents have been going up here, but home prices are still staying pretty low. You can easily get a home for $90k and rent it at $1,000 a month in the right market/area!

I would check out:

The Best Types of Markets for Profitable Turnkey Properties

[Ritch Bonisa]

@Andrew Syrios Great article!  You make some great points in there!  Great advice to follow! All investors should read this.  https://www.biggerpockets.com/renewsblog/2014/12/2...

[Zachery Buffin]

Nashville is a little high for you but the surrounding suburban area is very doable in that price range. If you're looking for a high growth area look no further than middle Tennessee, Memphis is still a little behind but Nashville is booming and with it the surrounding areas up to 30-40 miles away are viable rentals. The property taxes are just above the very lowest in the whole country as well and there are a lot of "boots on the ground" as far as out-of-state infrastructure as well. I live here and I am telling you it is like Texas but a little less saturated/hot.  

[Andrew Syrios]

Originally posted by @Ritch Bonisa:

@Andrew Syrios Great article!  You make some great points in there!  Great advice to follow! All investors should read this.  https://www.biggerpockets.com/renewsblog/2014/12/2...

 Thanks Ritch!

[Alyssa Dyer]

@Spencer Wardwell did you ever take the leap or still researching markets?