NYC member interested in investing out of state

[Jason Nelson]

Hi All,

I'm new to this forum and would just like to get some member opinions on 2 out of state (for me) properties. 

The first one is a 30 unit apartment complex in Illinois for $650,000. The NOI is $75,174 Cap Rate %11.80. Listing says 97% occupancy and they recently finished renovations.

The other property is in Marietta, GA. It's a Triplex for $250,000 with a NOI of $24,552. 100% occupied and the owner agrees to pay management, yard expenses, and maintenance for a year up to 5k.

Either way I obviously would need a management company, but does anyone have any recommendations on which would be less of a headache? From internet searches both seem to be in a "safe" part of their respective cities. Of course I will eventually talk to some people that actually live in the areas. I would also need to find a partner on either one of these deals. Unfortunately, properties here in the NYC area just don't offer the same type of return. 

[Jeremy Zindel]

Hey @Jason Nelson,

I can't say anything about the property or the market in Marietta, GA but Decatur, IL is my home market and I'm pretty sure I know the 30 unit property you are referring to (I actually know the owner as well).  It has had a lot of work done to it both in terms of renovations and also management improvements to turn it into a well performing property, from what I understand. 

The area it is in is a good rental area.  I actually own two duplexes that sit side-by-side just a couple blocks from there and then two more SFRs about 5-6 blocks from there, all in that same general area/neighborhood.  I'm pretty much just focused on SFRs and small multis right now or I would be giving it some serious consideration. 

Decatur is a great rental market in general.  Lots of great areas for good cash flow without having to go into the rough parts of town (although a lot of people do chase what appear to ridiculous cash flow numbers and end up in areas that I would never invest in, but I digress).  Just make sure you buy in a solid area and know that you are buying for long term cash flow and don't expect any appreciation.

Let me know if I can answer any other question that you have about the Decatur market.  Also, I'm sure this goes without saying, but make sure you do plenty of your own due diligence before investing in something of this scale, especially being out of state.

Best of luck!