Australian looking to get into American market

[David Burnie]

Im a Aussie living in Australia, i had 3 investment property here selling 1 now, buying investment property here it very expensive to get in and out unlike in America, instead of buying another one here would like to travel to America and over the 3mth period im allowed to be there would like to find opportunities to buy in the American market, to do this i need to find myself a team to help guide me in the American market it totally different then im use too, any advice suggestions on where to start

[David Burnie]

Have been thinking about Ohio Cleveland Columbus Cincinnati as the place to invest in, bigger city area with good population 

[David Terbeek]

The US market offers great investment markets, as the previous person said Cleveland, Columbus, Cincinnati are all good options.  We are up in the Cleveland market and have worked with countless Australian investors.  Several options exist.  You can assemble a team all individually but good contactors are hard to find or you can work with a pure Turnkey provider like Martel Turnkey or finally find a company that already has the team together and offers turnkey "Services".

[Shane Kelly]

Those markets will make for good ones to invest in for returns on your money for sure. I'd highly suggest fleshing out your team before you do come to America of course, I think it would be a better use of your time. And poke around at all of these markets, don't just settle on the first one who talks to you, there may be a better fit for you elsewhere. I'm happy to help you learn more about the opportunities here in Cleveland, feel free to reach out and best of luck!

[Aj Parikh]

Definitely agree with @David Terbeek that getting into turnkeys is the best option. Martel Turnkey has had a lot of investors who are not from USA and they have had a good response from them. 

[Nicholas Misch]

Turnkey is not always the answer and comes with its own set of risks and problems. Make sure you connect with different people a who have experience in the area's you are considering and really work through all of the options before settling on what may seem the easiest at first. 

[Remington Lyman]

Quote from @David Burnie:

Have been thinking about Ohio Cleveland Columbus Cincinnati as the place to invest in, bigger city area with good population 

I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

https://www.biggerpockets.com/...

I invest locally in Columbus, Ohio

[Steven Foster Wilson]

Quote from @David Burnie:

Im a Aussie living in Australia, i had 3 investment property here selling 1 now, buying investment property here it very expensive to get in and out unlike in America, instead of buying another one here would like to travel to America and over the 3mth period im allowed to be there would like to find opportunities to buy in the American market, to do this i need to find myself a team to help guide me in the American market it totally different then im use too, any advice suggestions on where to start

Hi David,

I think Ohio is a great place to start. I have had great success investing here. Just this year I have been able to pick up 12 more units and I have several more in contract. Let me know if you have any questions or want any help, I am always happy to connect and chat. 

[Alex Evans]

Hello @David Burnie

The Memphis Market is a place that is great to invest in! 

There are a number of companies here in the city that offer a full turnkey service for you. All the way from the beginning (showing you available properties) until the end including property management. 

Memphis is a market that has seen great cashflow, and also stable appreciation year over year. 

Memphis offers all kinds of investments whether you are looking for cash flow or long-term holds. 

I would be more than happy to help answer any questions about the Memphis Market that you have!

[Caleb Brown]

Happy to chat about KC with you

[Drew Sygit]

@David Burnie

We think the Midwest is a GREAT place for OOS investors to consider!

YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods: https://www.biggerpockets.com/...

Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

[James Wise]

Quote from @David Burnie:

Im a Aussie living in Australia, i had 3 investment property here selling 1 now, buying investment property here it very expensive to get in and out unlike in America, instead of buying another one here would like to travel to America and over the 3mth period im allowed to be there would like to find opportunities to buy in the American market, to do this i need to find myself a team to help guide me in the American market it totally different then im use too, any advice suggestions on where to start

 Would probably start with doing a ton of online research on the various markets in the USA before hopping on a plane. Once you've narrowed it down to a few major metro areas I'd then start looking at companies operating in said markets and then work on doing a visit.

In addition to the above, if you are curious about which market to go in I put together a list of some of the most popular ones for you below.

• Cleveland, Ohio
• Cincinnati, Ohio
• Dayton, Ohio
• Toledo, Ohio
• Youngstown, Ohio
• Cincinnati, Ohio
• Memphis, Tennessee
• Saint Louis, Missouri
• Indianapolis, Indiana
• Detroit, Michigan
• Erie, Pennsylvania
• Louisville, Kentucky
• Milwaukee, Wisconsin
• Jackson, Mississippi

Myself I work in Cleveland and put together The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama but any of these markets should work for you so long as you do the right due diligence BEFORE you buy.

[Iris Cruz]

@David Burnie

I'm also living in Australia.

Check out this one.

Excellent post.

https://www.biggerpockets.com/...

[Mackaylee Beach]

@David Burnie I have worked with a lot of Australian buyers.  My partner and I pay close attention to the currency exchange.  Another partner of mine is actually from Australia although living in the States now.  Anyways, I think I could be a good resource for you if you'd like to reach out!

[Mike D'Arrigo]

@David Burnie those are all popular cash flow markets but I would definitely add Indianapolis, Kansas City and the Quad Cities (Davenport, IA specifically) to your list. All 3 of these markets are very affordable, have good diverse economies and industries and cash flow well.