Illinois investor wanting to reinvest out of state. But where?

Question

Hello everyone. I'm an Illinois investor who has always wanted to invest out of state. But which markets? Who else has moved their investments out of Illinois? And where? I know the why. "The hockey puck analogy".  I invested after the housing bubble with no regrets. Strong cashflows, great appreciation values. I manage my own properties and have learned that I truly love every aspect of it. Now, I'm ready to evolve to multi-family units and keep growing. Where?

Nick Giulioni · Answer

Hi Regina, I'm from California but started my real estate jouney here in Indianapolis. Now, I have almost a hundred doors. I would love to share my experiences and chat you more if you're interested.

Jonathan Klemm · Answer

@Regina Lemons - If you are set on moving I really like Kentucky.  My father has a lake house down there and the taxes are unbeatable.   Plus in Cities like Louisville and Bowling Green, there is solid cash flow.

Regina Lemons · Answer

@Jonathan Klemm- I'm not sure which markets yet. Sunbelt states. I used to love, well tolerate, winters much more until a few earaches ago. Now, I survive with the help of cotton in my ear, hot teas on my throat, and gardening books after work.

Jack Luzecky · Answer

@Crystal Smith I may be bias, but i think St. Louis is a great market to add to your portfolio. I do agree with @Jonathan Klemm to a degree about expanding elsewhere when the current market may be treating you right. But I think being involved in more than 1 market will only increase your deal flow. You may go 6 months on the hunt in your current market with no promising results, but being involved in another geographic market may bring rain to that drought. Its a numbers game as you begin to scale. I have plenty of clients who are involved 2-5 different markets. Many of them have struggles managing more than 1 team of property managers, contractors, etc., but their deal flow is much more consistent.

If you ever look into St. Louis market I would be happy to chat with you about the ins and outs of our local market.

Alexandra Feig · Answer

@Scott Swanson What about Gary, IN?

Jonathan Klemm · Answer

@Regina Lemons - Just curious what is your reason for wanting to invest out of state?  If it's not broke don't fix it.....If you already have a team and system in Illinois what is the desire to go elsewhere?

I just know for me being up here in Chicago, I do find other markets "sexy" but I feel like I would have to restart building my team and in my opinion, that is by far the most important part of real estate investing.

What's your portfolio like currently?

Crystal Smith · Answer

Before I give my response to where I need to react to one section of your post- "I manage my own properties"  In my opinion before investing out of state you should hire the right property management company to manage your properties locally. Why? So you can practice managing the property manager so when it's time to invest out of state you'll already have some experience managing property managers.  Can you manage multifamilies yourself from afar? Yes if you build the systems and relationships to do it, which means spending some time on the ground in that location to do it.

Now that I have that off my chest- Where- Start with major cities in your surrounding states first then expand out- Milwaukee, St. Louis, Indianapolis, Detroit for example.  I'd start looking around the major universities in those cities.  2nd rule- If you can't get there with a direct flight from your location then take the city off your list.

Jonathan Klemm · Answer

@Regina Lemons - That's awesome!!!!  I completely feel living somewhere warmer.  This is the first year that I've just not enjoyed living in Chicago during the winter.  I actually like the cold but don't like the snow at all unless it's there for a purpose.....like snowboarding.

Anyways, where would be a warm place that you would like to invest?  And how warm does it need to be?

Regina Lemons · Answer

@Jonathan Klemm

Great question! In a few years my son graduates high school and I'd like to live somewhere warmer for at least the winters.
My portfolio consist of 5 sf and 1 farm. I won't be selling. I'm almost out personal debt and have over $500k in equity and am ready to leverage into a warmer climate.

Alex Talcott · Answer

I lived in Illinois and "Michiana" and am very pleased with a point-person in Evansville, IN.

Illinois investor wanting to reinvest out of state. But where?

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