Best way to invest out of state for cash flow

[Taylor Thompson]

Hello everyone, I am currently in the process of buying my first house hack in Denver Colorado but wanting to figure out what I want to do more long term. I am figuring out how can I maximize my cash flow to the highest as I can and now thinking about investing out of state. This would be after I have 5 or so house hacks around Denver and I am only 19 years old so I have plenty of time to invest for appreciation but what would be my best choice here? Just invest in SFH in cheap good cash flowing markets or what other out of state methods are there? Thanks everyone 

[Ben Rhodin]

Hi @Taylor Thompson! Great to see you expanding your horizons. I juggled this exact situation less than a year ago, trying to figure out where and how to set my sights out of state. My biggest advice is to avoid the "shiny objects" and just settle on a market that works. I spent about 3 months analyzing, and networking in just about every market in the US, and I wasn't getting anywhere. Every time I started seriously looking at a market, another one popped up that provided better returns, or lower price point, or slightly higher cashflow, or was safer. I eventually told myself that I'm not getting anywhere, and am just spinning my wheels in the parking lot. So I picked a market that met my general criteria (St.Louis) and put all my effort into it and threw out all the other shiny objects. 

Within a month of doing so, I was closed on a new property and was producing cashflow. Yes, I could have probably found a slightly better market, or refined my strategy some more, but I took a look at my goals, and spending all my time tracking down that perfect market wasn't getting me there.

But anyway, that's enough of a tangent. I typically also push my clients here in Denver to house hack each and every year for as long as they want to. Each time they move into a new property, begin saving for your next down payment. You'll be amazed at how much faster you save once you, hopefully, don't have a living expense. After you have that next down payment, then you are free to utilize the rest of the year for whatever you want. This is when I suggest people start looking out of state in a cheaper cashflow market. If you are able to purchase an out-of-state property, and also your next house hack, why not do it?