Starting out with 50K Cash. Where isa good market w/ this Capital

[Charles DeRiso]

Hello,

I am going to be using a buy and hold strategy for either a MFH or SFH. I have 50K cash that I want to use to buy a property outright. I live in NY so I will be looking at out of state properties.

Does anyone have a geographic market suggestion for this starting capital?

Thank you in advance.

[Michael Ealy]

Originally posted by @Charles DeRiso:

Hello,

I am going to be using a buy and hold strategy for either a MFH or SFH. I have 50K cash that I want to use to buy a property outright. I live in NY so I will be looking at out of state properties.

Does anyone have a geographic market suggestion for this starting capital?

Thank you in advance.

Charles,

It seems like everyday there are people with money wanting to do out of state real estate investing.

The midwest is a good market since you only have $50K. 

Having said that, before you invest out of state, get the knowledge first and be careful. There are some who will take your money and tell you what you want to hear but you got to do your due diligence.

Out of state investing is very dangerous for the newbie since you don't know what you're doing and you're investing far from your backyard.

Maybe invest in Jersey - an hour or 2 away from where you are. But still close enough so that you can monitor the property and really know what's going on.

In out of state investing (and even in investing in properties close to you geographically), you got to know:

• The Market - know which places are good for rentals, for flips, what are the days on the market for sales and rentals, average and median sales prices, monthly rentals for 2 bed, 3 bed, 4 bed, for SFH vs. apartments, condos, etc
• Property valuation
• Estimating repairs
• Property management - leasing, repairs
• calculating numbers - know all the expenses of a rental property, so you can find the real cashflow, etc
• Leadership and management - you need to assemble a team of property managers, leasing agents, contractors, handymen, etc.