All Forum Posts by: Danny Gonzalez

Hey @William Silva

Congrats on saving up $90,000! That’s a great start. I’m also based in Miami but invest in other states for similar reasons—Miami prices can be prohibitive for getting the returns you’re likely seeking.

1. Favorite state to invest:

I’ve found Birmingham, AL to be a hidden gem. It’s an underrated market that still offers solid cash flow and equity growth, with lower competition. You mentioned Georgia, SC, NC, OH, and TN—these are great markets too, and I’ve seen investors do really well there. I’d also recommend adding Alabama to your list!

2. Favorite renting strategy:

In Birmingham, long-term rentals (1 year+) have worked best for me. However, markets like Tennessee or the Carolinas might be better for AirBnB or short-term rentals, especially if they are tourist-friendly. It depends on what you’re comfortable with and how hands-on you want to be. If you want to be more passive, a long-term rental could be the way to go.

3. Other thoughts:

Since you’re already a licensed Realtor and MLO, you’re likely aware of how important local expertise is. If you’re going out of state, make sure you have a solid property management team and trustworthy local contacts. I can personally vouch for the value of building those relationships—having that in place has made a huge difference in my own out-of-state investing journey.

If you’re open to learning more about Birmingham, feel free to reach out to me directly! I run a brokerage here and specialize in helping out-of-state investors like yourself. I’d be glad to help you get started.

Best of luck on your journey!

@Shane Quin Yes, this is exactly how I got started. Here’s how I structured those deals:

I’d find the property, run the numbers, and pitch it to my private investor. They’d cover the full purchase price plus rehab costs. We typically structured the deal with a 15% interest rate and a 12-month balloon payment due at exit. That means when we sold or refinanced the property, the investor would get their principal back plus interest.

One important thing to note: I only paid interest for the time that I had the loan. For example, if I only held the loan for six months, I would only pay half of the total annual interest that was due.

Additionally, the investor was always in the first lien position, with a mortgage recorded with the county at closing. Once the loan was repaid, the lien was released.

It’s always been a win/win—investors get a strong return without any active involvement, and I could scale my portfolio and flip homes without needing all the cash upfront.

Best of luck! You’ve got this!  Reach out if you have any questions.

@Kevin Siedlecki I haven’t worked with Norada directly, so I can’t speak to them, but I’ve had experience with other turnkey providers here in Birmingham, where my brokerage operates. Birmingham is a fantastic market that many investors still overlook. The city is experiencing major growth with developments like the $500M amphitheater north of downtown, steady appreciation rates (around 6% YoY), and housing prices that are still very reasonable compared to other markets.

If you’re open to investing in Birmingham, feel free to shoot me a message. I’d be happy to hop on a call to discuss options. I typically work with out-of-state investors to help them capture equity and build portfolios by managing start-to-finish value-add projects. But if you’re more focused on turnkey options, I can also recommend RP Capital—they sell turnkey properties. While they don’t handle property management, they assist with the purchase process.

Looking forward to connecting!

@Sanil Subhash Chandra Bose I totally get where you’re coming from—local markets can be tough to find good deals. I’m based in Miami but invest heavily in Birmingham, AL. The barrier to entry is much lower, competition is less fierce, and the returns are often higher, especially for buy-and-hold strategies like yours.

Since you’re considering investing out of state, I recommend focusing on one or two markets and really diving deep. Start by networking with other investors on BiggerPockets who are active in those areas, and make a habit of browsing Zillow and other platforms daily. This will help you spot good deals as you become more familiar with pricing trends and opportunities. The key to success in a new market is knowing it inside and out.

If you’re open to Birmingham, I actually have a few off-market multi-family deals right now, including a 40-unit property. My company operates as both a brokerage and a property management firm, so we have access to deals that don’t always hit the open market. Plus, we can help you manage the properties once you’re ready to purchase, making the process seamless for you.

In a day and age where everything is virtual, investing OOS is truly feasible and a great way to build your wealth.  Just make sure you have a solid team and monitor the projects closely. 

@Sean Kirk As someone who owns a Property Management company in Birmingham and has experience working with both Turnkey providers and Value Add investors, I’d recommend steering clear of Turnkey properties.

While Turnkey properties offer a lower barrier to entry, they also come with much lower rewards. Since you’re buying at fair market value, there’s no room for margin. Additionally, you miss out on one of the biggest advantages of real estate: forcing appreciation through strategic renovations.

Another issue with Turnkey properties is that they often aren’t homesteaded, which typically throws off any proforma, resulting in higher-than-expected property taxes. Plus, you have no real insight into the type of rehab that’s been done. Most Turnkey providers only do the bare minimum to maximize their own returns, which can lead to issues down the road.

With Value Add properties, you control the rehab process. That means you’re in the driver’s seat, deciding what needs to get done for maximum value, versus what can be deferred until later. We manage the entire project for our clients—from acquisition to rehab and property management—so you don’t have to worry about the day-to-day.

If you’re looking for steady returns, lower price points, and less competition in a market like Birmingham, feel free to reach out. We specialize in helping out-of-state investors and would love to help you build a successful portfolio.

I'm not a part of that organization, but I'm curious, what would be the goal/the outcome that you'd be looking for by joining?

I invest in OOS properties so just curious on what the benefit would be.

Hey Steve,

Yes, the market is definitely more challenging than it was 5 years ago, but there are still deals that cash flow with the right strategy. What I’ve found to strike the best balance between return and stability is investing in secondary and tertiary markets out of state. Markets like Birmingham, AL, still offer opportunities where properties can either cash flow or break even, with less competition compared to primary markets.

The key is finding good deals and building a strong local team. Value-add properties in the $70k to $100k purchase range, that require rehabs until $40k, with an ARV under $200k, can still cash flow even with 6.5% interest rates, especially when rents range from $1,300 to $1,600+.

If you have any questions or want to learn more, feel free to reach out—glad to help!

Hey Kyle,

That’s awesome that you’re looking to invest out of state (OOS). I live in Miami but invest in Birmingham, AL, so I completely understand the appeal of lower prices and less competition.

That said, OOS investing isn’t for the faint of heart. You need to know the market well, have enough reserves for inevitable expenses, and closely monitor the asset’s performance. A strong local team is key. While it’s not passive income like stocks, buying value-add properties in OOS markets has been the best wealth generator I’ve found.

I also own a property management company and brokerage in Birmingham. If you’re interested in chatting, send me a direct message. I’d love to help you succeed based on my decade of real estate experience.

Hey Chad,

That sounds like an awesome project. I'm not that familiar with FHA 203k, but if you can a lender that offers that product, they'll be able to talk through it and see if it's possible.

If you can pull it off with the FHA route, that'd be ideal. The other option, that might be a better option for this unconventional route, is going to a Hard Money Lender, or a DSCR lender. They'll typically require ~10% down and then cover some or all of the rehab.

Some of the best rates and coverage that I've found is through Obie Insurance.  Check them out, it's super easy to get a quote and compare it to others.