Out - of - State Investing

[Kenny Manchester]

Hello BP Community,

I want to start an in depth conversation regarding out-of-state investing. I have seen and read a couple posts on here with most people usually suggesting the City or State where they live/work without much explanation or comparison with other areas. Some others are usually trying to sell their service. Another thing I see is people suggesting different cities without any explanation or details involving why they suggest there. It would be great to see a breakdown of what neighborhood, was it due to you being able to create an "A" team, were looking for large appreciation and/or cashflow, job growth, population growth, large business influx? What really made the area you chose click for you? What kind of cap rate, ROI, ROE, are you seeing in these areas currently?

I know there has to be a lot of investors out there such as myself that have put in a lot of research and still can't put there finger on one let alone two areas to invest in. I have recently visited NC, ID, UT, and NV to check out the areas first hand. I am headed to TN next month. I have some capital I am looking to move out of the CA market. The reason is to not get hit with capital gains (had to sell). I am not asking you all to do all the research and pass on your hard work... I just think it would be great to pick all of your brains and let the information flow to the whole community. I rely heavily on referrals with life and business so why not do so with my RE business as well.

I think this will be great for all. Thanks in advance!

[Lee Ripma]

@Kenny Manchester

I did an in depth anaylis of markets, you can read about that below. Once you find a market, then you need to find a submarket within that market. I think submarkets are more important than markets. In other words, you can find a submarket within a lot of markets that will work for you. So instead of going to lots of different places go to 1-2 places on the list and then find a good submarket within in. That's my advice and what I personally do OOS investing. I live in CA, invest in Kansas City, and am going to add another OOS market, probably San Antonio. I just went there in December and picked my target submarkets. I'm waiting for a down leg in KC to sell and then I'll exchange into a small MF in San Antonio to get going there. 

https://www.vestmap.com/the-to...

It's 100% possible to invest out of state. I also invest in CA but you really need a ton of capital to do it. When I started I didn't have the capital to invest in my home market (San Diego at the time, now LA) so I went out of state. I talk about it on my podcast 373. I have a lot of resources at VestMap.com to help others do it. I'm a huge fan of out of state investing. Real estate investing in any market is hard at first but you'll get the hang of it. 

I hope this helps and if you don't want to keep your capital in CA what alternative do you really have? Figure out OOS investing, you'll be glad you did.