Rental Property Investor · Los Angeles, CA · Member since 2017 · 33 posts · 14 votes
Hi BP friends,
This year, my husband and I are looking to invest out of state. Our goal is to buy 2 investment properties out of state, we've read the BRRR & Long Distance investing books and we're pumped. We spent months researching markets and decided to go invest in Cleveland, Ohio. Someone from our RE investing group invests there successfully. So wanted to reach out to this amazing and helpful community to see if you'd have any resources or contacts, agents, lenders, stories, and/or advice. that you've worked with before based in Cleveland or surrounding areas?
This would be our very first out of state investment (we own properties in Los Angeles, CA) and we're thinking of all cash purchase and rehab (but depending on the cost of hard money, could also be a possibility to use less of our cash).
This year, my husband and I are looking to invest out of state. Our goal is to buy 2 investment properties out of state, we've read the BRRR & Long Distance investing books and we're pumped. We spent months researching markets and decided to go invest in Cleveland, Ohio. Someone from our RE investing group invests there successfully. So wanted to reach out to this amazing and helpful community to see if you'd have any resources or contacts, agents, lenders, stories, and/or advice. that you've worked with before based in Cleveland or surrounding areas?
This would be our very first out of state investment (we own properties in Los Angeles, CA) and we're thinking of all cash purchase and rehab (but depending on the cost of hard money, could also be a possibility to use less of our cash).
One thing to note when looking at the individual markets, you can make or lose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.
Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
Make sure your property manager is a licensed real estate brokerage.
Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.
Realtor · Columbus, OH · Member since 2017 · 313 posts · 245 votes
6y
Hi Wei Cho, I deal with many out of state investors who love the Ohio market. My latest deal that is closing next week is a 40 unit multi-family in Worthington, Ohio for investors from South Florida and my last closing was in German Village for investors from Atlanta, GA. I know what is required for an out of state to buy here and would love to help. Thanks - Pri