Looking to Take the Leap

[Christopher Caldwell]

A friend of mine at work turned me onto this community and here I am. I’ve been nervous about taking the leap into the rental property business, but I’m convinced that with the right network and knowledge based community of like minded individuals, I will make my first investment by this spring. Any help for newbies to include locations that you have found success with would be greatly appreciated! Thank you in advance. 

[Jason Wray]

Christopher,

Looks like you are in Los Angeles that is not an ideal location for sure when it comes to best bang for your buck and cash flow. A lot of my investors in Cali buy are finding great deals in Oregon, Ohio, Indiana, TN, FL & TX. Majority of these states offer a very comfortable price range and at a fraction of the cost compared to CA.

Depending on what you are looking to get into in terms or Single family, Condo, Townhome, 2-4 Unit Multifamily rentals. Many of these states above offer a good amount of inventory to ensure you find a great deal. Buying out of state may seem a little out of your comfort range but with the help of a good Real estate agent, Banker and team. You can easily find out how many other investors like those here on BP are making it work with little stress and a solid ROI.

To give you an idea you can buy a 2-4 unit in IN, OH, OR and TN ranging from $175K to $350K just depends on location.  There is a lot of gentrification going on in many of those states as well.  In Cali its almost impossible to be in that range plus the taxes are a fraction of the annual costs.

If you ever have any questions or want to talk REI or need advice feel free to reach out or message me I enjoy helping.

[Christopher Caldwell]

@Jason Wray Thank you for the advice! Even if I could afford to buy in California, I would likely never invest here because it’s definitely not a landlord friendly state. I am looking for a 2-4 unit multi family dwelling to invest in to start, and after some basic location searches, state/local requirements, and  property tax research, it seems like Ohio, Missouri or Indiana might be places with decent price point and ROIs. 

[Kristen L Garner]

Hi Christopher, welcome! I personally invest from out of state in Indianapolis (my hometown). But I work with investors all over the US who take the out of state approach to investing. I'd be happy to chat about trends I'm seeing and feedback I get about different areas if you'd like to DM me.

[Jimmy Lieu]

Quote from @Christopher Caldwell:

A friend of mine at work turned me onto this community and here I am. I’ve been nervous about taking the leap into the rental property business, but I’m convinced that with the right network and knowledge based community of like minded individuals, I will make my first investment by this spring. Any help for newbies to include locations that you have found success with would be greatly appreciated! Thank you in advance. 

Hi Christopher, I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

[Tim Ryan]

Hi Christopher.  I too am in LA. I invest in out of state markets.  Your location list is good, but you've left off the best one. Let me know if you'd like to connect and hear my story as it might be beneficial to you.

[Cullen W Jones]

Quote from @Kristen L Garner:

Hi Christopher, welcome! I personally invest from out of state in Indianapolis (my hometown). But I work with investors all over the US who take the out of state approach to investing. I'd be happy to chat about trends I'm seeing and feedback I get about different areas if you'd like to DM me.

 Indianapolis is a great market to begin building a portfolio. Relative to other places around the US, prices aren't going to dig into your rental's net income as much. There are also many areas being renovated at the moment with plenty left to be claimed.

[Robert Reynolds]

Hi @Christopher Caldwell, 

If you are currently renting, my suggestion would be to buy a home for yourself and house hack it/live in flip. The appreciation (Forced and Natural) you will gain out here in LA will more than likely trump any "cashflow" you will find out of state. That is what I have done and will continue to do out in LA as long as I live here. If you do already own out here, you could look at renting that out and buying another one and repeating the process. If that is not in the cards, you are in the right space to find advice about markets outside of California. Please feel free to reach out if you'd like to talk further.

Take Care, 
Robert Reynolds

[Rick Albert]

I think it depends on what your short term and long term goals are. House Hacking in Los Angeles can be very profitable from an equity standpoint. It would be a good place to start getting your feet wet in investing. However if that's not what you are looking for, it can be challenging to find good rentals here that cash flow well in the beginning but generally do well in the long run. 

Do you have an idea of how active you want to be in your management? For example in the beginning I wanted to be more hands on, now I don't as I start a family and want to focus on growing my businesses. It all depends and is ever evolving. 

[Min Zhang]

Hi Christopher, there's a lot of investment opportunities for multifamily properties available in Columbus, Ohio, including apartments, duplexes, and townhomes. As you consider investing in a multifamily property, it is crucial to look for areas with potential for growth. This could include neighborhoods undergoing revitalization, new businesses moving into the area, or planned developments that could lead to an increase in property values and rental demand.

I have personally been investing in small multifamily properties in Columbus for the past 2 years and have found that the cost of entry is low while the cash flow is high. Additionally, Columbus is the only Ohio market that has experienced rapid growth in both jobs and population. Let me know if there is anything I can do to assist you in your investment journey.

[Sloane Kraftsow]

Hey there!

Glad to have you join BP! Taking the leap into rental properties can feel daunting, but you're absolutely right—having the support of a community like this makes a huge difference.

When it comes to locations, success can be found in various places, often depending on your investment goals and market research. Some investors find success in up-and-coming neighborhoods with potential for growth, while others prefer established areas with steady demand.

Exploring different locations and understanding their market dynamics can be a great starting point. Feel free to ask around in the community; many folks here have valuable insights to share based on their experiences in different areas.

You're on the right track, and with the right network and knowledge, that first investment by spring might be closer than you think. Good luck on this exciting journey, I would love to connect.

[Simon Ashbaugh]

Hey Christopher, welcome to BiggerPockets! It really comes down to what you're aiming for. If you're seeking a reliable income stream, consider checking out Cleveland OH. It has a strong potential for cash flow and property values are steadily increasing. On the other hand, if your focus is on appreciation, Columbus OH is the place to be. The appealing aspect here is the ongoing population growth and other economic factors.

[Alfath Ahmed]

Quote from @Christopher Caldwell:

A friend of mine at work turned me onto this community and here I am. I’ve been nervous about taking the leap into the rental property business, but I’m convinced that with the right network and knowledge based community of like minded individuals, I will make my first investment by this spring. Any help for newbies to include locations that you have found success with would be greatly appreciated! Thank you in advance. 

Hi Christopher! Welcome to Bigger Pockets. The world is your oyster and if you can think something then you can do it as Napoleon Hill mentioned in his book "Think & Grow Rich". That is the concept that I lived and still live by.

I would first recommend finding your core 4 and reading as many bigger pocket books as you can. I personally read "BRRRRR" by David Greene and "Multi-Family Millionaire" Vol 1 & 2 by Brandon Turner. Those 2 concepts will really help you grasp how to get started in real estate and SCALE SCALE SCALE!

If you are house-hacking, I would choose a B+ location or better because you will not get too many opportunities to house-hack. You can use an FHA loan conventional 5% down loan (Find one without a PMI) that has great loan terms.

[Wale Lawal]

@Christopher Caldwell

Welcome to BiggerPockets and the world of real estate investment! It's fantastic that you're thinking about entering the rental property industry. Here are some pointers for beginners, along with location-related considerations:

1. Get Educated:
2. Determine Your Goals:
3. Establish a network:
4. Location-Related considerations:
5. Examine Regional Market Trends:
6. Recognise regional laws:
7. Start Small:

Recall that every real estate market is different, and that a mix of skill, connections, and real-world experience is frequently necessary for success. You will position yourself for success in the rental property industry if you take the time to study, expand your network, and make a thoughtful choice about your initial investment. 

Best of luck on the journey!

[Sloane Kraftsow]

Welcome to the BP community! This site is an incredible platform that has numerous resources so definitely take advantage of it all. I'd love to get you started with your first rental property.

Would love to connect.