Out of state investing - newbie RE investor

[Thomas Murphy]

Hello everyone, for the past several months I have been passively educating myself on RE investing by listening to BP podcasts, reading through these forums, and analyzing some multifamily properties using the BP calculators. I am eager to begin building my portfolio with a focus on long term hold duplexes to start, but I want to make sure I am not getting too far ahead of myself too quickly. 

I currently live in New Hampshire where it seems like entry prices for 2-4 units is pretty high (that is, if there are more than a handful for sale at any given time) so I'm not sure that this would be a good market to start in. With that being said, my curiosity has since shifted to out of state investing courtesy of these forums and BP podcasts. I have a pretty good understanding of the importance of building your "Core 4", but admittedly the thought of investing in a property you likely won't see in person is a little daunting. 

I am currently looking in the Columbus, OH area and have also read some positive reviews about the Tulsa, OK area. 

As a new investor, what are some actionable things that I can do today to get me closer to acquiring my first property? Side note, I have already been pre-approved for 2-4 units in NH, but I imagine that number will vary depending on the market I choose. 

I appreciate any tips/tricks/recommendations and I appreciate your time responding to this post. 

Happy new year!

[Jaylan Archer]

Hey Thomas! 

Congrats on jumping in and setting some goals for this year. 

I would definitely recommend focusing on the markets you are familiar with which are usually the ones you live in. 

 Knowing the demand, rental trends, and neighborhood nuances can significantly impact the success of your investment. Our region presents distinct opportunities and challenges, and by tapping into this local knowledge, low vacancy, high demand, high rent, etc, you can strategically position yourself for maximum returns.

Even with your lease not expiring until October, owner-occupant financing is a game-changer for those considering house hacking. This type of financing, designed for individuals who will live in the property, often comes with lower down payment requirements and more favorable interest rates compared to traditional investment loans. Taking advantage of these lending benefits not only eases the financial entry point but also sets the stage for a more secure and profitable investment.

Saving as much cash as possible as early on in the process is huge so the low down payment option of owner financing I can't recommend enough.