What is possible?! Exploring options to invest from abroad into the US market.

Question

Hey everyone,

I'm Ricardo from the Netherlands and starting my first investment adventure. Since my wife is American we're looking into the options to possibly start investing in the USA instead of here in Europe. (also to start building something in the USA in case we would like to move there one day)

She grew up in Dayton(centerville) Ohio and still has family there. It would make sense for us to start exploring in that area. The question that I have is what would be possible for lets say 150-200k dollars to get started? What would a good first step assuming we can't/won't use any financing since we don't have US incomes, or are there still ways for financing?

And what would be the things needed and take into account to buy a first rental property?

I have been doing research(and will do a lot more here on biggerpocket now) but since I'm not familiar with US real estate and the ways to go I Thought I would ask you experienced guys for some thoughts and advice. Anything is welcome to get a better idea. Thanks!

Marc Rice · Answer

Love your ambition to continue investing in the US. I've had 2 separate clients who were US citizens but worked at Kraft in Netherlands and were able to buy 2-4 unit rental properties here in Columbus. I've also brokered several properties in Dayton and find some good off market deals there. Near Centerville/Kettering you can find some great A/B class properties with good tenants.

In terms of cash vs financing, if one of you is a US citizen, you can still qualify for a conventional loan with your current income. That is what my two separate clients did.

For $150-200k - we can search in the Belmont/South Park/Northridge Estates/Huber Heights area as we may get priced out of Kettering/Centerville/Beavercreek. But we can find a sold 2 unit in the B/B- class area right around $200k.

Min Zhang · Answer

Hey Ricardo, if you’re looking into the Dayton market, you can find multi-family homes and even single-family homes in the $150k-$200k range. I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!

Samuel Diouf · Answer

Hey Ricardo, that's impressive that you guys are looking to start building something here in the U.S. while living abroad. The fact that you're wife is from Ohio and you guys have family here is great!

Ohio is a very hot market right now with a lot of upcoming growth and when buying real estate with cash, I like to focus on heavy cash flow markets. Dayton, OH happens to be a market that yields that high cash flow because of the price/rent ratio.

Starting out, I would focus on buying properties in nicer locations because there will be fewer problems that come up and management will be much smoother. Good zip codes to look into for SFHs in your price range will be 45425, 45403, 45419, and 45415.

I'd be glad to share a graded map of the area my team created!

Jimmy Lieu · Answer

Hi Ricardo, my best advice is to work with someone who is also an investor and can easily plug you in with their systems and network of GCs, lenders, and PMs. Happy to connect and answer any questions you may have.

Ryan Cheek · Answer

Hey Ricardo,

Welcome to the community and congrats on starting your investment journey! It’s great that you’re considering the U.S. market, especially with your wife’s ties to Ohio.

With a budget of $150-200k, you have some solid options, especially in the Midwest where property prices can be more favorable compared to coastal markets. Dayton/Centerville could be a good starting point given your familiarity and existing connections there.

Here are a few steps to consider:

• Explore Cash Purchases or Lower Financing Options: Given that you're considering not using financing, you could look for properties that fit within your budget for a cash purchase. However, there might be financing options available even without a U.S. income, particularly if you work with lenders who specialize in foreign nationals.
• Leverage Local Knowledge: Since your wife has family in the area, tap into their local knowledge. They can help you understand the neighborhoods, the rental market, and any potential risks.
• Focus on Neighborhoods with Growth Potential: Look for areas with good rental demand and potential for appreciation. Proximity to universities, hospitals, or growing businesses can be a good indicator of a strong rental market.
• Understand U.S. Tax Implications: Make sure you're aware of the tax implications for foreign investors. Working with a CPA who understands both U.S. and international tax laws is crucial.
• Property Management: Since you might be managing from afar, it’s essential to find a reliable property management company that can handle the day-to-day operations for you.

If you’re open to other markets, I’d also suggest exploring places like Indianapolis, where the market is investor-friendly with strong cash flow potential. I work with Neu Real Estate Group, specializing in build-to-rent multi-family properties that might align with what you’re looking for.

Feel free to reach out if you want to discuss further or need any additional insights. Happy to help!

Best of luck,
Ryan Cheek

Sam McCormack · Answer

I can connect you with my mortgage broker to talk more about what we can do to make this work! I am in Cincinnati, just south of Dayton. Shoot me a message if we can talk more about this!

Julio Gonzalez · Answer

Welcome to BiggerPockets, Ricardo!

Ricardo Van Kruisbergen · Answer

Wow..seriously amazed by your responses. What a community here. Thank you! Each one of you for taking the time and effort to give me some advice and thoughts. This is already helpful. I’m going to do more homework and see what the exact steps i need to take to buy a property. Will for sure look at all the info here. Getting excited to see things could be possible with this budget. I might reach out to you guys soon!

Bill Hampton · Answer

@Ricardo Van Kruisbergen

Welcome to Bigger Pockets. Bigger Pockets is a great place for education and networking and is full of great content.

I recommend that you check out the following resources:

1. Start by reading the Ultimate Real Estate Investing Guide: https://www.biggerpockets.com/guides/ultimate-real-estate-investing-guide/introduction

2. Check out other online guides available here: https://www.biggerpockets.com/guides

3. Take a look at BP's blog where new articles are published every day: https://www.biggerpockets.com/blog

4. If you want to network or ask specific questions about your local market, go to your local real estate forum and connect with investors from your area: https://www.biggerpockets.com/forums/86-local-real-estate-networking

5. You can meet local investors by registering to attend real estate events in your area: https://www.biggerpockets.com/forums/521-events-and-happenings

6. BP has various tools to help you analyze your deals (rentals, flips, wholesale, etc). : https://www.biggerpockets.com/investment-calculators

7. If you can't find what you're looking for, try the Bigger Pockets Fileplace. It contains hundreds of files such as ebooks, checklists and spreadsheets for real estate investors: https://www.biggerpockets.com/files

Good luck.

What is possible?! Exploring options to invest from abroad into the US market.

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