All Forum Posts by: Andrea Lauritzen

I start off investing out of state in KC and I'm a huge fan. I talk about it on my podcast. I do think that the B or better zip codes area a great place to start. Feel free to checkout the listings and resources we have on our website.

I’m a podcast junkie and will definitely check out your content! Thank you for reaching out and letting me know where to find you!

1 Vote

Kansas City, Missouri

Quote from @Jason Wray:

Andrea,

A lot of great options in Smithville and Kearney just depends on if you going for a SFH or 2-4 Unit Multifamily. Either way its two great spots both for schools and overall strong growth in residential and commercial.

Thank you for the response! We will look at those areas when narrowing down properties

0 Votes

Kansas City, Missouri

We just finished a trip through the Midwest and narrowed our 1st area to start OOS to Kansas City. Any insight to the market someone would be willing to share? Or insight into making our 1st OOS investment off to a good start? Thank you!

4 Votes

Kansas City, Missouri

Quote from @Timothy Hero:

As someone who has closed DSCR mortgages in all these cities, I'd recommend them all, but stay clear of St. Louis. Like all towns with high crime, it's not entirely bad, but you do run the risk of lenders wanting to reduce LTV to reduce risk due to the area (if you're going DSCR anyways).

This is great to know! There are so many other great options, so we will just cross St. Louis off for now.

0 Votes

Quote from @Chuck B.:

@Andrea Lauritzen - Speaking as a native and an investor, Louisville is a great city... slow but steady appreciation and you can still find 1% deals if you look closely enough. People are extremely friendly and our foodie scene punches way above its weight. We've long been beneficiaries of logistics/e-commerce but we're becoming a serious tourism town as well.

>>since there was a major change in our local laws - I'm curious, what did they do locally to you guys?

@Chuck B. mention of the foodie scene and tourism is giving me great ideas for that part of the trip! Also sounds like it's a great mix for cash flow and appreciation, good long term hold spot.

Locally - this is our new law - https://www.tacoma4all.org/initiative01

highlights: no cold weather evictions (November -April), No school year evictions if tenant is student or works in a school (September - June). If rent increase is 5% or more, tenant can demand relocation assistance. There's other things too, but those are the most frustrating ones. There are tons of evictions that are stayed until April 1st. In practice, once the eviction is able to go through, sheriffs office gets to it when they get to it. Often they take 1 or 2 more months, and you have to get an extension. If sheriff's office doesn't get around to your eviction during the narrow time window, that's the landlord's problem and you have to wait again.

0 Votes

Quote from @Jimmy Lieu:

Quote from @Andrea Lauritzen:

We have a few rentals in our town (Tacoma, WA). Getting frustrated with the extreme laws and ready to go to a different area. We have a road trip planned to the midwest/south (Kansas City, St. Louis, Indianapolis, Cincinnati, Louisville, Nashville). We’ve decided to turn this trip into exploring the market over there.
Looking for advice on what we should do in preparation and areas we should focus on/avoid.

Hey Andrea, I'd recommend that you also look into Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

Thank you very much for your response. It looks like Ohio has some very strong movement and we will definitely have it as a top spot to explore.

1 Vote

Quote from @Michael Smythe:

@Andrea Lauritzen why didn't Detroit make your list?

Volkswagen Scout Brand investing $11M in Detroit, 200 new jobs

https://www.teslarati.com/volkswagen-scout-11-million-detroit-investment/

Hotel Added to Hudson Site, total over $1.4B

https://www.detroitnews.com/story/business/2023/11/02/hudsons-site-hotel-plans-move-ahead-as-city-issues-permit/71426631007/

Detroit west side Dexter Neighborhood Receives $21.5M

https://www.clickondetroit.com/news/local/2023/11/01/neighborhood-on-detroits-west-side-receives-more-than-215m-in-investments/

Norway’s Nel Hydron investing $400M, 517 new jobs

https://businessfacilities.com/nel-hydrogen-will-build-400m-gigafactory-in-southeast-michigan#:~:text=In%20Southeast%20Michigan-,Nel%20Hydrogen%20Will%20Build%20%24400M%20Gigafactory%20In%20Southeast%20Michigan,green%20hydrogen%20using%20electrolyzer%20technology.

Chase invests $200M in Detroit

https://www.axios.com/2023/09/28/detroit-rebound-jp-morgan-investment

Gilbert Foundation invests $439M in Detroit

https://www.henryfordmsu.org/news/september-2023/gilbert-family-foundation-announces-nick-gilbert-neurofibromatosis-research-institute

Bollinger Motors investing $44M, 237 new jobs

https://michauto.org/bollinger-motors-plans-44m-metro-detroit-investment/

New Detroit Developments to Be Excited About

https://www.metrotimes.com/detroit/15-new-detroit-developments-to-be-excited-about-photos/Slideshow/32734721/32735392

BorgWarner Investing $20.6M, 186 new jobs

https://www.crainsdetroit.com/auto-suppliers/borgwarner-invest-206-million-create-186-jobs

3 International Companies Choose Detroit

https://www.detroitregionalpartnership.com/international-investment-comes-to-detroit-region/

District Detroit $1.5B Development, 12,000 temp jobs, 6,000 new jobs
https://www.detroitnews.com/story/business/2022/11/15/district-detroit-1-5b-development-to-include-housing-retail-hotels/69649853007/

6 New Residential Developments in Detroit

https://detroitisit.com/6-new-residential-developments-in-detroit-to-know-about/

$2.5B New Center by Henry Ford Health, Pistons owner and Michigan State University
https://www.clickondetroit.com/news/local/2023/02/08/incredible-investment-in-our-city-25b-detroit-neighborhood-redevelopment-to-begin-in-2024/

$300M Huntington Place Renovations & New Detroit Hotel

https://www.crainsdetroit.com/real-estate/huntington-place-renovations-new-hotel-deal-reached

Trip was already planned, we are adding looking at real estate to the trip as an "aha moment" since there was a major change in our local laws. Will for sure keep Detroit in mind for future opportunities given how that market is going!

0 Votes

Quote from @Nicholas Zaharevich:

Quote from @Andrea Lauritzen:

Quote from @Nicholas Zaharevich:

@Andrea Lauritzen I 100% agree! Washington State and especially the city of Tacoma are making this area a less desirable area to invest in. On top of that, there's a bill working it's way through the state to add an additional sales tax on real estate. We own and manage several rentals across the state an will also be looking for opportunities to 1031 exchange into more landlord friendly states with better price points.

I just spent a few months out near Kansas City, MO and Leavenworth, KS. Loved the area!

I'm happy to cheer about my experience out there, and always like meeting up with other investors in the Tacoma area.

Nick

We are considering doing a 1031 to get started in the Midwest - do you have any tips or local firms you recommend who can do out of state 1031's?

Hopefully soon we can add Midwest investor to the real estate accomplishments list!!

As a matter of fact I do! I have two that you can reach out to. Martin Burns (253) 507-5586 or Ed McFerran (253) 471-1200. Both are real estate attorneys in the Tacoma area. When you're ready, I'd be happy to help in any way I can.

I had not considered using a law firm to help with a 1031 exchange. I've heard great things about both of these attorneys and will keep them in mind!

0 Votes

Quote from @Dave Foster:

@Andrea Lauritzen, Most full-service 1031 QI firms will all work nationally. A 1031 exchange is performed the same in all states since it is a federal statute. And its actually the norm these days for 1031 to start in one state and end in another. So the location of your QI shouldn't be that big of a deal.

There are a number of QIs like us even right here on BP that you can vet using their profile page and references. the really nice thing about BP is that you can actually talk to clients who have worked with the QI to see how their experience was.

Thank you for this tip! If we end up going the 1031 route, this is such a great resource.

0 Votes

Quote from @Nicholas Zaharevich:

I just spent a few months out near Kansas City, MO and Leavenworth, KS. Loved the area!

I'm happy to cheer about my experience out there, and always like meeting up with other investors in the Tacoma area.

Nick

We are considering doing a 1031 to get started in the Midwest - do you have any tips or local firms you recommend who can do out of state 1031's?

Hopefully soon we can add Midwest investor to the real estate accomplishments list!!

0 Votes

All Forum Posts by: Andrea Lauritzen

Andrea Lauritzen has started 2 posts and replied 13 times.

Post: Ready to start OOS investing in KC

Post: Ready to start OOS investing in KC

Post: Ready to start OOS investing in KC

Post: Branching into out of state investing

Post: Branching into out of state investing

Post: Branching into out of state investing

Post: Branching into out of state investing

Post: Branching into out of state investing

Post: Branching into out of state investing

Post: Branching into out of state investing