Add Value to Create Equity

[Derrick Flores]

I'm pursuing a property out-of-state that has great cash flow and ROI numbers. I want to make sure that I'm not over paying for the property so I can add value and gain some equity growth. Had a REA run CMA and all similar like properties have sold for a fraction. What other due diligence can I do to confirm property value. Thanks!

[Joe Scaparra]

I am somewhat confused but intrigued.  Your profile indicates you're building a 26 million dollar home, but new to real estate and want to become financially independent.  But I am guessing you're doing that with the company you work for and the home is not for you?  Otherwise, someone involved with a 26 million dollar home would need little advice from people on BiggerPockets.

That being said, your post and profile worries me greatly.  If the reason you're looking to Ohio is because the numbers look good, I would caution you for several reasons.  For being out of state and a newbie to investment real estate, you are stepping into multi-facet, advance real estate endeavor that would require a lot of CONFIDENCE and EXPERIENCE to be successful.  Ohio is a state losing population and winters can be harsh and challenging for real estate investors, especially those residing in CA.  Land-lording in Ohio is going to be a huge uphill obstacle for a newbie from CA even if you hire a property manager.  Again not saying it can't be done, but you are basically taking an advance course in Calculus and you haven't even taken Algebra yet.  Get my drift. Wish you the best, but I have a bad feeling about this for you, proceed with caution.  Cheers.