Excited to Learn and Connect in the Real Estate Journey!

[Hannah Liu]

Hello everyone! I’m really excited to join this community.

I'm from California. I've been interested in real estate for years and have invested as an LP in several projects, ranging from residential single-family homes to NNN properties and flipping.

While I haven’t owned any property yet, I’m hoping to take that step in the near future. However, I’ve been hesitant due to challenges like remote management, high interest rates, and low cash flow. I’d love to learn from all of you, connect with like-minded people, and eventually achieve financial freedom together!

[Dennis Bragg]

Hey @Hannah Liu, great to have you here! I can feel that spark of excitement you’ve got.. it reminds me of the thrill I had when I first dove into real estate decades ago. Believe me, I’ve seen my share of ups and downs: from navigating interest rate spikes to figuring out out-of-state managment back when online tools weren’t half as good as they are now. After 20 years in the investing game, plus working as an investor-friendly agent, I’ve learned that hesitation can feel like a big hurdle but often ends up being the push you need once you break through it.

I’m personally based in San Diego, California, and licensed here, but I’ve also looked into projects across the country with folks who sought better cash flow. Sometimes that means exploring markets like Omaha or Austin or even Chicago if the numbers pencil out. A good friend of mine recently managed to pick up a modest duplex outside Phoenix that looked risky at first glance.. low rents, older neighborhood.. but with a few smart upgrades, it became a steady earner in under a year.

You mentioned your worries about remote investing and the challenges of managing properties from afar. Those concerns are totally valid. Plenty of people in California look for more affordable opportnities out of state, so property management becomes key. From what I’ve heard, there are reputable local management companies in regions like San Antonio or Omaha that handle everything from screening tenants to arranging quick repairs. I recall reading about it in CNBC...

The quest for solid returns in our current market might feel daunting with interest rates where they are, but the good news is.. if you find the right deal and set clear criteria.. like a minimum cash flow target, or a plan for eventual refinancing.. your numbers can still work out. Sometimes it’s about being a little flexible on location or property type.

But enough about me: Where do you see your first property purchase happening, and what’s your biggest question right now about making that leap?

[Mike Paolucci]

Quote from @Hannah Liu:

Hello everyone! I’m really excited to join this community.

I'm from California. I've been interested in real estate for years and have invested as an LP in several projects, ranging from residential single-family homes to NNN properties and flipping.

While I haven’t owned any property yet, I’m hoping to take that step in the near future. However, I’ve been hesitant due to challenges like remote management, high interest rates, and low cash flow. I’d love to learn from all of you, connect with like-minded people, and eventually achieve financial freedom together!

 Hey Hannah. Congrats on taking the first steps on your investing journey. I'm born and raised in San Francisco and started off as an OOS investor as well back in 2021. 

First thing I recommend is to figure out your target market. Landlord friendly states are going to be your best friend since CA isn't the best at looking out for landlords. Focus on factors like what is driving cities to grow both in population and economics. Taking a trip to the city will also help you get a lay of the land and what you can expect from the specific market you settle on. There are still some good markets that will provide cashflow but you'll need to have realistic expectations when investing purely for cashflow. 

Next, start building your remote teams. Investor focused realtors & Property managers are going to be your biggest asset since they'll be finding your deals & managing the day to day operations for you. A good, solid PM will be key to your investing. Local investor focused realtors will have multiple referrals for you to check out and interview. PM's will have plenty of contractors to help streamline the process for you and limit your liability when dealing with contractors. 

Finally, don't get caught up in analysis paralysis. Hardest step in everyone's journey is to pull the trigger on a deal. You're going to learn A LOT from your first investment property so don't get discouraged. There's ways to help limit your overall liability like targeting more turnkey properties or properties with long term tenants (2+ years of living there) to help the learning curve. I normally recommend a turnkey single family home (3b/1-2ba)/ light cosmetic work single family as a 1st investment. Single families are generally more desirable for tenants & you also get longer staying tenants most of the time. 

Happy to share some of my OOS experiences. 

[Bradley Buxton]

@Hannah Liu

Welcome to BP! Lots of good resources here and knowledge. Investing in CA can still be a good way to go. Any market in or out of CA will need a good team. Meet-ups and networking are great places to start. 

[Julio Gonzalez]

Hi Hannah, glad to have you as part of this community! 

[Drew Sygit]

So what specific questions can we answer for you?

[Hannah Liu]

Quote from @Dennis Bragg:

Hey @Hannah Liu, great to have you here! I can feel that spark of excitement you’ve got.. it reminds me of the thrill I had when I first dove into real estate decades ago. Believe me, I’ve seen my share of ups and downs: from navigating interest rate spikes to figuring out out-of-state managment back when online tools weren’t half as good as they are now. After 20 years in the investing game, plus working as an investor-friendly agent, I’ve learned that hesitation can feel like a big hurdle but often ends up being the push you need once you break through it.

I’m personally based in San Diego, California, and licensed here, but I’ve also looked into projects across the country with folks who sought better cash flow. Sometimes that means exploring markets like Omaha or Austin or even Chicago if the numbers pencil out. A good friend of mine recently managed to pick up a modest duplex outside Phoenix that looked risky at first glance.. low rents, older neighborhood.. but with a few smart upgrades, it became a steady earner in under a year.

You mentioned your worries about remote investing and the challenges of managing properties from afar. Those concerns are totally valid. Plenty of people in California look for more affordable opportnities out of state, so property management becomes key. From what I’ve heard, there are reputable local management companies in regions like San Antonio or Omaha that handle everything from screening tenants to arranging quick repairs. I recall reading about it in CNBC...

The quest for solid returns in our current market might feel daunting with interest rates where they are, but the good news is.. if you find the right deal and set clear criteria.. like a minimum cash flow target, or a plan for eventual refinancing.. your numbers can still work out. Sometimes it’s about being a little flexible on location or property type.

But enough about me: Where do you see your first property purchase happening, and what’s your biggest question right now about making that leap?

Hey Dennis, thanks for sharing the info. I guess my challenge right now is to define the strategy and balance all the factors, such as job and population growth (value increase), cashflow (demand & supply market, interest rate, property tax, maintenance cost), and risk control (insurance etc). 

I've researched Angier and Graham near the San Antonio area. Someone told me there're some new build deals there but the area seems not well-developed and will need some time to get its value increased. 

I've also been looking at some turnkey properties and still research on different areas.

[Hannah Liu]

Quote from @Mike Paolucci:

Quote from @Hannah Liu:

Hello everyone! I’m really excited to join this community.

I'm from California. I've been interested in real estate for years and have invested as an LP in several projects, ranging from residential single-family homes to NNN properties and flipping.

While I haven’t owned any property yet, I’m hoping to take that step in the near future. However, I’ve been hesitant due to challenges like remote management, high interest rates, and low cash flow. I’d love to learn from all of you, connect with like-minded people, and eventually achieve financial freedom together!

 Hey Hannah. Congrats on taking the first steps on your investing journey. I'm born and raised in San Francisco and started off as an OOS investor as well back in 2021. 

First thing I recommend is to figure out your target market. Landlord friendly states are going to be your best friend since CA isn't the best at looking out for landlords. Focus on factors like what is driving cities to grow both in population and economics. Taking a trip to the city will also help you get a lay of the land and what you can expect from the specific market you settle on. There are still some good markets that will provide cashflow but you'll need to have realistic expectations when investing purely for cashflow. 

Next, start building your remote teams. Investor focused realtors & Property managers are going to be your biggest asset since they'll be finding your deals & managing the day to day operations for you. A good, solid PM will be key to your investing. Local investor focused realtors will have multiple referrals for you to check out and interview. PM's will have plenty of contractors to help streamline the process for you and limit your liability when dealing with contractors. 

Finally, don't get caught up in analysis paralysis. Hardest step in everyone's journey is to pull the trigger on a deal. You're going to learn A LOT from your first investment property so don't get discouraged. There's ways to help limit your overall liability like targeting more turnkey properties or properties with long term tenants (2+ years of living there) to help the learning curve. I normally recommend a turnkey single family home (3b/1-2ba)/ light cosmetic work single family as a 1st investment. Single families are generally more desirable for tenants & you also get longer staying tenants most of the time. 

Happy to share some of my OOS experiences. 

Hey Mike, thanks so much for the great advice—it’s been really helpful! I’ve definitely been stuck in analysis paralysis, now I feel I really need to make up my mind and target purchasing my first OOS property in the next few months. :D

[James Wise]

Quote from @Hannah Liu:

Hello everyone! I’m really excited to join this community.

I'm from California. I've been interested in real estate for years and have invested as an LP in several projects, ranging from residential single-family homes to NNN properties and flipping.

While I haven’t owned any property yet, I’m hoping to take that step in the near future. However, I’ve been hesitant due to challenges like remote management, high interest rates, and low cash flow. I’d love to learn from all of you, connect with like-minded people, and eventually achieve financial freedom together!

 Holla

[Min Zhang]

Welcome to BiggerPockets, Hannah! I’d recommend starting by researching markets that align with your strategy, especially areas that offer good cash flow. The Midwest is a great option, it's affordable and tends to offer better rental yields. Also, make sure to connect with local investors in your target markets and ask for recommendations on property managers and general contractors. It’ll really help to build a good team right from the start. Best of luck on your journey, I'm excited to see you grow!

[Julia Lyrberg]

Hi Hannah, Welcome to BP!

[Sean O'Keefe]

Following - I'm based in California

[Hannah Liu]

Quote from @Drew Sygit:

So what specific questions can we answer for you?

Well, i have lots of questions that I don't know where to start. I guess it's just too many factors to consider and it easy to get overwhelmed and cannot get accurate info and estimation when I conduct analysis (ex. property tax rate, insurance, maintenance fee, rent, repair, closing cost, etc.) I've been looking at NC and GA recently, trying to find some entry level and easy to maintain property, but there are too many areas and it's really hard to narrow down. Right now there're some agents trying to sell me the new build homes, but I've run the number, with the current interest rate it's really hard to get a breakeven cashflow in 5 years. 

[Samuel Diouf]

Quote from @Hannah Liu:

Quote from @Drew Sygit:

So what specific questions can we answer for you?

Well, i have lots of questions that I don't know where to start. I guess it's just too many factors to consider and it easy to get overwhelmed and cannot get accurate info and estimation when I conduct analysis (ex. property tax rate, insurance, maintenance fee, rent, repair, closing cost, etc.) I've been looking at NC and GA recently, trying to find some entry level and easy to maintain property, but there are too many areas and it's really hard to narrow down. Right now there're some agents trying to sell me the new build homes, but I've run the number, with the current interest rate it's really hard to get a breakeven cashflow in 5 years. 

If you're looking to get cash flow while still being in an appreciating area..  A lot of investors based in markets like California and New York are choosing to purchase their investments OOS in the Midwest because of the affordability and numbers making more sense.

Prices in Columbus are still low enough to find 1% rule deals and there's a ton of appreciation happening in this market as well. I actually moved from Florida to Columbus for the real estate. I saw how fast the city was growing and decided to make the jump.