All Forum Posts by: Aaron Toczylowski

 Do you already own a primary residence? If not I would recommend focusing on taking advantage of DP assistance programs for first time home buyers and capitalizing on a house hack. That will be considerably lower risk than over leveraging yourself and investing out of market, which typically results in a loss on the first deal or two. Cut your living expenses down with a househack, save money aggressively for a period of time and then revisit the out of state idea once you have a cash buffer. 

@Aaron Toczylowski, I'm an investor from out of state and I'm happy to share my experiences in the markets I'm in - Philadelphia and Tennessee. I think there are pluses and minuses, particularly if your home market is expensive. I found the advice "not to do it" frankly frustrating, but there are pitfalls and things to be aware of. I also live in an expensive market, so I can relate. Everyone has to determine their own risk tolerance, so all feedback should be taken with your own lens of risk tolerance. Please reach out and I'd be happy to talk more!

Have you ever considered purchasing a home and perhaps turning it into a short term rental? Or are you only focused on fix and flips? With a short term rental you are basically having the guests pay for your mortgage, you can use the property whenever you want, property will be kept in same or even better condition when purchased, and you'll also get a couple tax benefits.

I admire your interest in real estate investing, and you're asking the right questions. When it comes to investing out of state or in a high-priced local market like Annapolis, there are several steps to consider.

Continue your research on markets that match your investment goals, focusing on areas with job and population growth.

Build a network of real estate professionals and fellow investors in your chosen market.

Explore your financing options and get pre-approved to understand your budget.

Consider hiring a property management company for out-of-state investments.

Be thorough in your property assessments, neighborhood research, and understanding local laws.

Decide on your investment strategy, whether it's fix and flips, long-term rentals, or a mix.

Keep educating yourself about real estate investing through books, podcasts, and courses.

Find a realtor who specializes in working with investors and understands your goals.

Remember, investing is a journey, and you don't need to have all the answers right away. Keep learning, stay persistent, and seek advice from experienced investors.

You're on the right path to real estate success!

Have you thought about expanding your search beyond Annapolis proper? We've had clients with recent success in the surrounding area including Pasadena, Glen Burnie, and Laurel, to name a few. Within Annapolis itself, you might consider Cape St. Claire and Hillsmere since these communities have lots of older homes at competitive price points. 

Good luck on your real estate investing journey! 

Jack has good advice.  Work out the details close to home for the first one.  Then, let me know when you are ready to invest out of state.  I help about 30 OOS investors purchase here in Montgomery, AL.

I think you might have just not had the right realtor to help you see the opportunities that are available a bit closer to you. There's plenty of great options for different types of investors looking for all sorts of property types and investment strategies right in Maryland! Also, there's absolutely a considerable intrinsic value in being able to just get in your car and drive for an hour or two to get to your property if you need to. Let me know if there's anything I can do to help in your journey! 

 That realtor gave you good advice, so many times the “investor midset” frankly is pumped by all these guru’s making money on courses. Your best bet is to buy a primary residence in an appreciating area (pretty much all of the dmv is that) when you are ready to commit to living there for at least 5 years if necessary, you can also buy rentals on the side but they should be thought of as investment’s just like stocks and bonds with a likely good long term investment but not likely to allow you to retire early or be “financially free” or whatever other stuff you hear on large parts of bigger pockets. I apologize in advance if that was a little harsh, it was more directed at the people who sell this dream than you.