All Forum Posts by: James Wang

I may go against the grain here and say that timing and location are the biggest factors in real estate. You're very wise for wanting to invest OOS and I see a lot of folks looking to Ohio for the answers. For example, I look at job growth to make sure the city I buy in has the right type of jobs that aren't going away anytime soon. Cleveland has grown by about 7.5% over the past 10 years so it doesn't quite meet my criteria of 10% over 10 years; however, it's also a more stable market. 

Then, I also bounce over to Ohio State University in Columbus to look at potential deals. Here, I check the local crime map on BrightInvestor and see that most of the crime is on the east side of campus and the few, off-market multifamilies with high equity and absentee owners are on the northeast side of campus. I'll use this to find a deal the works for my goals while avoiding the risk of high crime. 

Overall, highly support you going towards OOS investing and there are many markets and sub markets that may work for you. Just make sure you do your homework so you get a cash-flowing rental putting money in your pocket and not a property that stresses you out to the breaking point. 

Quote from @James Wang:

Good Afternoon Everyone, 

I Currently Live in Queens, NY and because of the higher barrier to entry, I am Looking to get into Out-of-state investing. 

Will you be using traditional banking with 20% down or will you be using creative finance with 5% down?

Quote from @James Wang:

Quote from @Travis Biziorek:

James, I highly recommend checking out Detroit.

I live in California but am very active there and hold a portfolio there as well. Happy to shoot some resources your way if you're wanting to dig in.

Yes, Would definitely want to learn more about the Detroit market area as well, How did you get started with OOS in Detroit? what was your process to build the team and make the distance work ? 

 Hey James, saw your DM and just sent you a bunch of info. Talk soon, man!

James, I highly recommend checking out Detroit.

I live in California but am very active there and hold a portfolio there as well. Happy to shoot some resources your way if you're wanting to dig in.

Quote from @James Wang:

Good Afternoon Everyone, 

I Currently Live in Queens, NY and because of the higher barrier to entry, I am Looking to get into Out-of-state investing. Currently looking in a few areas Within the Tristate Area, and Ohio mainly for cash flow. My Goal for the next year is to purchase my first property out of state and eventually get more through time. I am currently managing 5 units of my family's investments here in NY. 

I am hoping to connect with those who have already had a few properties being managed out of their state to learn more about the process before getting started myself. Although I am nervous and anxious I am more excited overall to learn and take my first steps into the world of RE. Currently thinking more flexibly for types of units to start off in, but leaning towards more multifamily (Duplex-Triplex-Quadplex) 

 Any insights are helpful in this journey, negative or positive. I want to hear it all. 

Thank you all, 

James.W

Hey James, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

Hello James,

Great to see your enthusiasm for out-of-state investing! Ohio can be a fantastic choice, especially for cash flow, and it's awesome that you're already managing 5 units in NY. Your willingness to learn and take those first steps is key. I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

https://www.biggerpockets.com/blog/core-four-real-estate-team

I've been actively investing in Columbus, Ohio, for a couple of years now, primarily in single-family value-add rental properties. However, I totally agree that multi-family properties can offer better cash flow opportunities. Just remember to stay financially prudent, avoid over-leveraging, and keep some reserves handy. With the right strategy and mindset, you can definitely build a successful real estate portfolio. Let me know how can I help!

@James Wangthanks for the post. I moved to Texas from New York...a world of difference in home affordability. The general metric we use when investing in single family homes is a 3BR/2BA home that is at 60% (or so) of the market's "median price point". In most markets, that gets us into a good rental property.

So, which market to choose from? The answer to that is with another question - where do you have trustworthy people? Since I lived in NYC, I couldn't invest there. I had to invest elsewhere. I choose, Jacksonville, Florida. Why Jacksonville? Because I knew good people there. This is coming as a 15 year, out-of-state investor - my recommendation is to ALWAYS choose whatever city you have the most trustworthy contacts in. Keep in mind that you may never see your asset. That's an ENOURMOUS amount of trust/money to put into a stranger's hands. What I mean here is that if you know someone in a different city...but that city may not have as good as numbers as this other city...then stick with the city where you know people. One wrong move, one wrong contractor, one wrong vendor…will erase any "benefit" one city has over another. Your network is the most important piece for any potential returns when you invest out of state.

Hope all of that makes sense.

@James Wang

pick a market within driving distance - it sounds like you're already looking there.  CT, PA, NJ.  there is just no substitute for being hands on and learning a market.  and higher rates have really hurt cash flow even in the "lower cost" markets.