Wanting to Invest Out of State by End of Year

[Sharon Tseung]

Hi!

So I've been listening to a lot of podcasts and following the forums. I'm from the Bay Area, California and since prices are crazy here I'd like to invest out of state. I have this goal of acquiring a property before end of the year.

This is what I've researched are the steps:
Look for potential markets, study the macro economics

• Research neighborhoods. Understand A/B/C class neighborhoods and what we want to invest in
• Check safety/crime, schools, things to do
• Check if state is landlord friendly or tenant friendly
• Check regulations within each state
• Check if properties fit 1% rule and run analysis on numbers
• Narrow to 2-3 markets. Meet people and ask questions, find some people in the market.

Look for your team:

• Insurance
• Lender
• Agent
• Property Manager
• Only do a deal if you have someone boots on the ground

Since it seems like housing prices are pretty high right now (and the market could crash?) I was thinking maybe invest in the Midwest for my first property as from my understanding these properties are better for cash flow, worse for appreciation, which means maybe value won't go up or down too much? I just want to pull the trigger on a property and learn from the process ASAP. So pretty much I was thinking Kansas City or Indianapolis for properties, or something like that. I just don't know the areas well. What do you guys think about this?

I was thinking of looking in the 60k - 100k range for my first property. Putting a 20% down payment on one of these wouldn't be that big of a deal for me. I would love to look for my team perhaps through these forums, and I'd love to fly out and check out the neighborhoods. Any advice for neighborhoods and anyone know people who I can work with?

Thanks so much!
Sharon

[Lee Ripma]

@Sharon Tseung

I invest from LA in Kansas City. The market is hot there right now but I am a big proponent of learning by doing! Things aren't real until you do them. MF is especially hot in KC right now but there are a decent number of duplexes to be had. I would go for a duplex over a SF for your first, just because it brings in so much more cash and it's way easier to make the numbers work. Everyone has to find the right thing for them though, and you'll figure out what the right thing is for you! 

If you buy right you don't need to wait for a crash. The crash has been supposedly coming for years but has yet to materialize. 

I started 1.5 years ago and now I have 10 doors and looking for more. Those first few really open the door!