All Forum Posts by: Cindi Boyer

Hi @Cindi Boyerjust to give you some encouragement I know and work with a couple of California based investors who own and "manage" properties right here in the Charlotte area (just outside of Mooresville your target market). With a solid plan and the perk of having boots on the ground I think it can really be a solid move for you. Best of luck to you!

Great post.  Thanks for sharing. I'd like to find out more about your investment objectives and see if I can't be a resource for you or pint you in the right direction. 

Like you Cindi I am in California, but Northern California and the San Francisco Bay Area more specifically. I cannot tell you about NC but I do own property out of state in NY, Mi, and Pennsylvania. One thing I can tell you is that owning real estate out of state can present an entirely different experience and also very different expectations. We get so used to living, working, and owning real estate in our area that we think it will be very much the same in other areas. As one example here in the Bay Area where I live if I found a property I could in fact purchase and generate a cash flow of 5% I might think that is great but in other areas it may be common for properties to generate from 8% to 15% and there may be many properties that will produce this result instead of very very few. Generally you can buy allot more square feet for your money and that might seem great at first but remember you also have to maintain that. As one example and not in NC but in Chicago I found a decent 24 unit multifamily building for $350,000.00. I first thought to myself wow! that is unbelievable because lets say in San Francisco we cannot even find a single studio apartment that will sell for that low. This one particular building I am referring to here is cash flowing even at 50% occupancy. I thought to myself oh wow! that is great but I did not consider how long is has been operating at 50% occupancy and if there is any realistic expectation that I will ever be able to fill the occupancy at a much preferred rate let us say between 75% and 90%. Because of what I am finding if I found a multifamily building that was lets say 75% occupied I may now question if this has been the norm or if this is possibly the one and only time the building has ever has such a good occupancy rate and I would question what the future and long term expectations might be. 

You definitely want to check with the local municipal offices about there property owner policies. Here if we do not personally order garbage pick up for example you will neither get or or be billed for it. In some out of state areas the Municipality may charge you for garbage pick whether you ordered or not or use the service at all simply because that is their policy and ordinance or law. You for sure want to familiarize yourself completely with local Landlord/Tenant laws, rent control, and virtually think of anything and everything possible. Lets say you purchased a multifamily building and be thinking its up to you where and when you put a new roof on the building. It is possible that the local building department goes around inspecting the roofs of multifamily building and has the power to decide if you should pay for and have a new roof put on your building and it can happen at a time when you are not prepared to deal with that expense. Well this happened to me once with an out of state property and because I thought to delay the roof work the local municipality had my building torn down. There were no leaks in the roof mind you, none. 

Just know that owning and operating real estate in other areas especially out of state can present you with an entirely different experience, responsibilities, liabilities, etc. 

Once completely informed you can make your new knowledge a part of your real estate buying criteria.