Out of State Investing

[Justin Carter]

Hello, I am based in the metropolitan DC area and looking to invest out of state as this market is very expensive and it's hard to find a good deal. Does anyone have any experience investing in the Midwestern states? Was considering looking into markets such as Detroit, MI, Cleveland, Oh, St. Louis, MO, etc as from my understanding cash flow tends to be higher in those markets. I am primarily focused on cash flow vs appreciation at this point in time. Any thoughts on investing in those markets would be greatly appreciated. 

Also, by chance does any have any contacts of real estate agents they can share in any of those markets? 

[David Leggett]

I agree, I think targeting Midwest markets like Cleveland, Pittsburgh, Detroit are great for generating cash flow, as well as building equity in these markets and using that to build up your portfolio more quickly.  I have some investors I'm working with buying in the Cleveland market solely interested in cash flow and are buying multi-family properties in the 65-80k range that are generating $1,400-$1700 a month in rent.  

And that's not to mention any value add opportunities.  That's just because rents are currently so high in this market.  It just depends on the type of neighborhood you're looking to invest in.  The ones with the higher cash flow, generally have more risk.  But an expert agent in the area can help you identify which neighborhoods you're looking to invest in and which ones you want to stay away from.

It always helps when the properties are in your backyard, but these Midwest cities aren't that far away if you needed to visit for an emergency.  The best thing you can do is to find an expert Realtor/ Broker in the area that can help cut your learning curve in that market and can help you identify the best type of neighborhoods and areas you want to identify to maximize your cashflow gains!