[Newbie] How to find long distance markets?

Question

Hello! I'm just starting on my real estate investment journey! Just attended Brandon's multi-family investments webinar a few minutes ago, and was wondering if anyone could give me some insight into how to find good markets when you're looking long distance? I live in Orange County, CA and housing here is quite expensive, so I'm trying to broaden my horizons. So far I've just tried going on Redfin and zooming out really wide and clicking on random counties haha. I'm thinking there's probably a better strategy. If you have any tips, I would greatly appreciate it! Thanks!

Jo-Ann Lapin · Answer

If can live with California . I would target Sacramento and the Central Valley. The employment is strong in Sacramento and Central Valley you can get for less and cash flow on your rents. Don’t expect great appreciationim Central Valley. The key is to find properties that you can value add too.

Hattie Dizmond · Answer

There are any number of ways to get into long-distance investing.  You need to decide a few things first, like whether you want to be an active investor or a passive investor.  If you just want to get into REI and are fine being passive, you could always look into any number of the turnkey investment groups.  You can find them right here on Bigger Pockets, but (I'm not affiliated.) Memphis Invest would be one group to look at.

If you're looking to be more of an active, hands-on investor, you need to decide whether your situation is going to allow you to travel to a market(s) for acquisitions or whether you would rather have boots on the ground in those markets.

There are any number of approaches you can take.  There are also any number of ways to locate the properties you're looking for.  In the Midwest you may be able to work remotely with an agent to locate properties.  In the Dallas area, it would depend on what class of property you are looking for and what your acquisition parameters - financial targets - are.  If your numbers are aggressive, and you're looking for B property, it's unlikely you will find those, using a traditional agent, in Dallas.

So, there's a lot of detail you need to fill in, before anyone can do anything more than simply suggest a market you might want to check out.

Larry Fried · Answer

@Diana NA As other have mentioned, you have to decide how involved you want to be - and there is a range along the active/passive line.  If you decide you are more passive oriented then my BP article from last year might be helpful Three Key Routes for Passive Real Estate Investing

If you are looking to own cash flowing rentals in economically healthy markets then best options are generally in the midwest, and some in the southeast.

All best in your REI!

Howard Koor · Answer

A few years back, my teenager graduated from Binghamton University, which is in Binghamton, NY. Renting a 4 bedroom apartment is pretty inexpensive compared to Boston which is where we live. The cash flow in this market is strong. The appreciation is not. Good luck.

https://www.apartmentlist.com/ny/binghamton

https://www.apartments.com/binghamton-ny/

Matt K. · Answer

Figure out your budget/goals and then go from there.... If you are a high wage earner, but not quite high enough to go local then maybe something like KC works. There you could be looking at 75-150/door depending on property with decent rents at about 1%.Or maybe you're looking at something cheaper... then you have options like OH, INDY, Memphis etc....

Much easier to pick once you narrow down what your limits are and then find the most valuable option w/ in them.

Renee Shifris · Answer

Hi Diana and welcome to B.P.

This is a fantastic site for networking and learning from other successful investors.

Have you considered looking in the Midwest?  Prices are very reasonable.

Good luck in growing your portfolio!

Kevin Moules · Answer

@Diana NA, welcome to BP! This site is great. I joined about 4 months ago and try to visit daily. I would recommend doing the same. Reach out to folks and make phone calls. I see you are in OC, I am in the central valley as @Jo-Ann Lapin mentioned. If you are looking for cash flow like I am you will have to do some digging. I looked out of state and am deciding to stay in state.

However where I live cash flow is not possible. So I am looking south. You may want to look in Bakersfield which is the south tip of the valley. Homes can go for 150k there. It is one of the areas I am looking at. I kindly disagree with jo-ann on the appreciation. Where I live in the valley my home has appreciated about 60% in the last 5 years. It crosses my mind some days to just sell it but another home would be just as much so not much gain.

I am always looking on realtor.com for places. I look in about a 2-3 hr radius from where I live. Start there and see what you can find. Good luck!

Alina Trigub · Answer

@Diana NA

Welcome to BP family! As a general rule, in order to pick a market, I suggest you go with:

1) your own backyard (maybe inaccessible price-wise as you mentioned)

2) where you have family/friends

3) where you frequent as a traveler

4) where you'd want to retire

Best!

Diana NA · Answer

@Hattie Dizmond and @Larry F., I'm hoping to be an active investor. I'd be able to travel a few times over the weekends (still have a full-time job), but definitely looking to build up a small team wherever I end up investing. Planning on picking up "Long-Distance Real Estate Investing" to hopefully get some tips on that front.

@Matt K. Current goal is to close on a 2-4 unit multi-family by the end of the year. 75-100/door is exactly the budget I am looking into, so I'll definitely check your recommendations.

@Jo-Ann Lapin, @Kevin Moules , @Renee Shifris, @Howard Koor Thank you so much for the suggestions, I'll be sure to look into those markets!

Thank you, everyone, for your responses! I really appreciate the tips you've given so far. I'm excited to be a part of this great community!

[Newbie] How to find long distance markets?

Most Popular Reply