Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
New Member Introductions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 8 months ago, 04/03/2024

User Stats

1
Posts
5
Votes
Nestor Hernandez
Pro Member
5
Votes |
1
Posts

Newbie from LA

Nestor Hernandez
Pro Member
Posted

Hello Bigger Pockets Community!

I am new to real estate and based out of LA looking to learn more about out of state investing! I'm excited to be a part of this community and eager to learn! Looking for people in LA doing local meetups with the same goals.

  • Nestor Hernandez
  • User Stats

    140
    Posts
    67
    Votes
    Lateefah Mathews
    Pro Member
    • Realtor
    • Atlanta, GA
    67
    Votes |
    140
    Posts
    Lateefah Mathews
    Pro Member
    • Realtor
    • Atlanta, GA
    Replied

    Hey @Nestor Hernandez Welcome to BP! Good luck on your investment journey!

  • Lateefah Mathews
  • [email protected]
  • 404-333-8693
  • User Stats

    10,035
    Posts
    4,836
    Votes
    Andrew Syrios
    Pro Member
    • Residential Real Estate Investor
    • Kansas City, MO
    4,836
    Votes |
    10,035
    Posts
    Andrew Syrios
    Pro Member
    • Residential Real Estate Investor
    • Kansas City, MO
    ModeratorReplied

    Welcome to BiggerPockets Nestor and good luck investing!

    BiggerPockets logo
    Join Our Private Community for Passive Investors
    |
    BiggerPockets
    Get first-hand insights and real sponsor reviews from other investors

    User Stats

    1,080
    Posts
    1,405
    Votes
    Samuel Diouf
    Agent
    Pro Member
    • Real Estate Agent
    • Columbus, OH
    1,405
    Votes |
    1,080
    Posts
    Samuel Diouf
    Agent
    Pro Member
    • Real Estate Agent
    • Columbus, OH
    Replied

    Hey Nestor, welcome to BP

    Keep reaching out and networking, best wishes!

    business profile image
    Reafco - Samuel Diouf
    5.0 stars
    2 Reviews

    User Stats

    1,588
    Posts
    1,440
    Votes
    Zeke Liston
    Agent
    • Real Estate Agent
    • Columbus, OH
    1,440
    Votes |
    1,588
    Posts
    Zeke Liston
    Agent
    • Real Estate Agent
    • Columbus, OH
    Replied
    Quote from @Nestor Hernandez:

    Hello Bigger Pockets Community!

    I am new to real estate and based out of LA looking to learn more about out of state investing! I'm excited to be a part of this community and eager to learn! Looking for people in LA doing local meetups with the same goals.


     Hey Nestor, there are tons of great resources and books about out-of-state investing in BP. I'd love to connect, I'm based here in the Ohio market. 

    • Zeke Liston
    • 614-665-5793

    User Stats

    377
    Posts
    316
    Votes
    Nadeem Alamgir
    Agent
    • Real Estate Agent
    • Cleveland, OH
    316
    Votes |
    377
    Posts
    Nadeem Alamgir
    Agent
    • Real Estate Agent
    • Cleveland, OH
    Replied

    Welcome to BP @Nestor Hernandez! What areas out of state have you considered looking into? 

    business profile image
    Key Realty.
    0.0 star
    0 Reviews

    User Stats

    735
    Posts
    989
    Votes
    Min Zhang
    Agent
    Pro Member
    • Real Estate Agent
    989
    Votes |
    735
    Posts
    Min Zhang
    Agent
    Pro Member
    • Real Estate Agent
    Replied

    Hey Nestor, welcome aboard! I recommend reading “Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties” - I found it to be very helpful when I got started investing 2.5 years ago.

    Here is a summary of the book.

    https://www.nateliason.com/notes/long-distance-real-estate-investing-david-greene

    The book also mentions the importance of having a rockstar Realtor, contractor, lender, and property manager. Let me know how I can help!

    User Stats

    4,006
    Posts
    2,359
    Votes
    Michael Smythe
    Property Manager
    • Property Manager
    • Metro Detroit
    2,359
    Votes |
    4,006
    Posts
    Michael Smythe
    Property Manager
    • Property Manager
    • Metro Detroit
    Replied

    @Nestor Hernandez be very careful as there are many OOS crooks trying to sell investors crappy properties with fake numbers!

    Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

    If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

    So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

    Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:

    Class A Properties:
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% the more recent norm.
    Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.

    Class B Properties:
    Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
    Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 years

    Class C Properties:
    Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
    Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
    Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

    Class D Properties:
    Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
    Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
    Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    • Michael Smythe
    business profile image
    Logical Property Management
    0.0 star
    0 Reviews

    User Stats

    1,819
    Posts
    1,321
    Votes
    Rick Albert#3 House Hacking Contributor
    • Real Estate Agent
    • Los Angeles, CA
    1,321
    Votes |
    1,819
    Posts
    Rick Albert#3 House Hacking Contributor
    • Real Estate Agent
    • Los Angeles, CA
    Replied

    Hey Nestor,

    Good luck! You came to the right place. I'm a 2x house hacker here in Los Angeles (and a case study in the BP House Hacking Strategy book). Happy to chat if you would like.

    Best,

    Rick

    User Stats

    849
    Posts
    825
    Votes
    Simon Ashbaugh
    • Realtor
    • Columbus Ohio, Cleveland Ohio
    825
    Votes |
    849
    Posts
    Simon Ashbaugh
    • Realtor
    • Columbus Ohio, Cleveland Ohio
    Replied
    Quote from @Nestor Hernandez:

    Hello Bigger Pockets Community!

    I am new to real estate and based out of LA looking to learn more about out of state investing! I'm excited to be a part of this community and eager to learn! Looking for people in LA doing local meetups with the same goals.


    Hey Nestor, welcome to BiggerPockets! You should have a system in place when investing out-of-state, I recommend that you read this article about your Core 4 to real estate investing. This will be beneficial to your journey! All the best!

    User Stats

    317
    Posts
    288
    Votes
    Manny Vasquez
    Agent
    • Real Estate Agent
    • Orange County
    288
    Votes |
    317
    Posts
    Manny Vasquez
    Agent
    • Real Estate Agent
    • Orange County
    Replied

    Welcome to the BP community Nestor!   You have come to the right place for all things Real Estate related!  You mentioned that you are mostly interested in looking for out of state investments.  Don't forget you have some excellent opportunities here in SoCal!

    There are several meetups happening all over LA.  There you will find plenty of investors, lenders, flippers, house-hackers, appraisers, etc..make friends with everyone at the meetings, most people will be happy to share their RE journey.  Remember, there is no 1-specific road to success, listen to everybody's journey and then decide which road you want to take.   I hope this helps and good luck!

    • Manny Vasquez

    User Stats

    77
    Posts
    53
    Votes
    Maureen McCann
    • Investor
    • San Diego, CA
    53
    Votes |
    77
    Posts
    Maureen McCann
    • Investor
    • San Diego, CA
    Replied

    Welcome to BP Nestor and congratulations on finding this valuable site along with identifying real estate as your long-term wealth builder!  You are going in the right direction.  I have 16 years of investing experience and have been involved in over 5K real estate transactions.  There are some good meet up groups in LA. I am in San Diego and know of a few of them. I would be happy to make the introduction to a good group led by my good friend Lloyd Segal. Feel free to message me and I will make the intro. 

    Investing out of state can be done easily as long as you align yourself with the right company. I can help you with some recommendations too.  Cheers! 

    User Stats

    11
    Posts
    6
    Votes
    Replied

    Hey @Nestor Hernandez

    I actually thinking on starting a meetup in the Covina area since there are not a lot of meetups on this side. If you are interested let me know. 

    BiggerPockets logo
    BiggerPockets
    |
    Sponsored
    Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes