All Forum Posts by: Account Closed

Quote from @Nicholas L.:

@Account Closed

but if you don't BRRRR... you'll be paying retail.

25% down on a turnkey house, even in one of those markets, is greater than a low DP loan that would let you house hack locally.

see what I'm saying?

Yeah forsure. I definitely would love to stay local seeing as I have been here my entire life and know the city inside and out, but every angle I have looked at it, its not feasible if I want to scale. There aren't many multi-families under 4 units in Vegas that aren't in dangerous areas unfortunately and getting a normal FHA with 3% down on these high purchase price properties anyway would be tough for me because the business I own is just barely 2 years old.

Quote from @Nicholas L.:

@Account Closed

Which market is yours?

Here's the thing about OOS - those prices are enticing but you need a strong team, or you'll end up like these folks...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

I am in Las Vegas. Thank you for sharing those threads. I have heard plenty of horror stories about contractors like that mentioned in the first thread which is why, for my first few deals atleast, I am staying away from BRRRR deals. It just seems like another avenue to get screwed and until I have more experience I want to avoid any major projects. 

Quote from @Nicholas L.:

@Account Closed

Why not invest locally - do you consider it too expensive?

Can you house hack?

Can you find a market within driving distance that is more accessible?

What you are proposing is doable but tough

I'd recommend starting locally if possible

 Unfortunately my market is not only expensive, but isolated. I have seen a few deals that do make sense, but I really like how cheap real estate is in these other markets. It allows me to get my feet wet in investing, learn, make mistakes with less money on the line. In my market scaling doesn't feel feasible right now either. 

Quote from @Mariah Petzoldt:

Hey Jacob, Going to visit all of those markets sounds like a ton of work. I've invested in many markets without visiting them because I found reliable boots on the ground teams. I would suggest to research online as much as you can first to narrow your markets even more. Spend some time on Google Earth and walk some neighborhoods. Have you already spoken to and identified your teams in these places? You can narrow down your agents over the phone and they can give you a ton of info to make certain that they have properties that meet your criteria. There are a few factors to keep in mind with all 4 markets- you will be dealing with a lot of snow and cold weather issues, lots of old properties which are more costly to renovate and tenants don't move in winter. Also I would check the population growth for all the markets and make sure people are still moving to these areas. You don't want to buy rentals in places that people are moving away from. That's my 2 cents. Best of luck on your investing journey! You can check this free event too. It might help. https://www.biggerpockets.com/...

Hi Mariah thank you for your response. Ultimately I am likely going to narrow it down to 3 markets before I leave. I really like walking properties and seeing new parts of the country so I am not super worried about the workload, but I will keep that in mind! It certainly helps that Upstate New York is beautiful too (I live in the Desert). Having worked in alot of out of state markets, do you have any advice on picking a reliable property management company? For me right now this seems to be the most daunting part, it's hard to ascertain just from a google search which ones are good and bad from my perspective. 

Quote from @Michael P.:

What do you like about Youngstown over the other Ohio markets? I invest in Toledo.

I’ve lived in Syracuse and would take Ohio over NY state easily. The NY housing stock is way more aged and decrepit and the laws too landlord friendly, and taxes to high.

I looked into Toledo aswell and the general sense that I had was that it would be a good target for a flipper or for BRRRR deals. Just getting started out, I am looking to target properties that are close to turn-key or ones that I can defer work on for a couple years (either already occupied or major repairs that won't be due for another couple years). From what I saw, most of the good deals in Toledo were on fully distressed properties or abandoned ones. In Youngstown, I found more plentiful deals on homes closer to what I was talking about. I will definitely revisit Toledo again in the future though as all of Ohio has serious potential.

As for Upstate New York, the stock of multi-families is what really pulled me in. I already did some digging on the tax situation and even still the numbers make sense to me. I will admit though that I am not super familiar on the laws and need to do some more research on all angles of that. 

Quote from @Martin Grizzanti:

@Account Closed I invest full time in Rochester--let me know if you have specific questions 

 Thank you for reaching out Martin, will do!

Quote from @Jason Mancuso:

I help investors with this concept all of the time in Rochester, NY, and I will start off by saying that it is a great idea to take advantage of. There is nothing wrong with investing in a foreign market, or one that you are not living in, but it is very difficult to do when you have no familiarity with what that market "feels like" because you have never been there. To me, property locations and property types can be largely subjective in nature so it is very helpful to have boots on the ground experience to some degree before you decide to invest in a market. You will also be able to relate better with your property manager and agent recommends based on what you then know. 

I always recommend to spend a ton of time driving around within each market and select different listings, or past listings, in various different neighborhoods to get a feel for each location and determine where you are comfortable with and where you are not. It should be possible to view properties as well while you are there so you can get a feel for what condition and property type will be for different price points and locations. 

Hope this helps! 

That is super helpful thank you for your insight Jason. I am preparing to make many mistakes and am certainly not expecting my first few purchases to be anywhere near perfect finds understanding that with each purchase, I am gaining more experiencing and becoming more familiar with the market. I am also planning on visiting the market multiple times a year especially while getting started to help alleviate some of those unfamiliarities you mentioned. 

Hi Biggerpockets,

I have identified a handful of markets (Youngstown Ohio, Elmira New York, Rochester New York, and Syracuse New York) that seem to be a right fit for my investing philosophy. I am planning a trip where I will hit each market and spend a day boots on the ground touring properties and meeting with property managers in an effort to identify the best fit for me. My goal is to identify, from my narrowed selection, one market I can invest into for the rest of my life and I understand having a solid team is critical in accomplishing that. 

Has anyone planned a trip like this before and if so, what was your experience like? Do you have any advice?

Thank you for your time!