All Forum Posts by: Jared Cheney

@Lee Ripma Thanks for the response! I'll definitely check out some of your posts to read about your experiences. I'm still getting to know the area, but am excited at the potential that seems to be there from what I read on here (and elsewhere). You mention really bad zip codes. As I outlined in my more detailed response above on this post, we are looking at units a few miles from UMKC. Are you familiar with this area at all? Do you have recommendations on particular areas to stay away from?

Thanks!

@Mike D'Arrigo Thanks for taking the time to respond. We have spent the past few weeks since this post discussing things and looking at deals that come up in the area, and have since decided to purely focus on a single family for our first out of state purchase (as clearly MF in that range weren't going to work). We came to the price point of around $70k based on a few things. First, we noticed that units in this price range seemed to be the norm in the surrounding areas of the more expensive $150k+ areas. Not too far away, and ultimately not as run down as the dirt cheap under $30k ones. We realize that $70k will not get into us the best neighborhood, but it will get us within a few miles of UMKC, which I HOPE translates into a better neighborhood and maybe some appreciation down the line. I have yet to visit the area to tour any units, but will definitely be doing so before any offer is placed (just need to compile a list of potential units). In addition to the area, average rents seem to be around $700/month in these locations. So even looking at rough numbers ($350 PITI, $100 for potential expenses, $100 for prop management (?)) would be about $550. Leaving us with a cash flow (~$150 or so). As long as the tenant is good and the unit is being maintained, even a small cash flow of $50/month would be okay. The ultimate goal with this first out of state purchase is to get our feet with the entire process, to better suit ourselves to make bigger and bigger purchases when we are more comfortable, more familiar with the area and also have a bit more investment funds (finishing up school this year).

Any feedback on my breakdown and thought process above is very much welcomed. I'm here to learn from others' experiences. Thanks! :)

Hello Bigger Pockets family, long-time podcast listener and forum reader, first-timer poster!

Quick back story: I bought my first rental property (1/1 condo) here in my hometown of San Diego 1 year ago. Ever since I learned about REI (about 3 years ago), I've loved the idea of consistent cash-flow rentals from a high-volume of doors. As is very well-known, San Diego is not known for it's cash flow but for it's appreciation. With that in mind, I've been preparing for the last year for my first out of state purchase.

After doing some research, my friend (partner) and I have decided to focus on Kansas City, MO. Specifically, SFR ~$70k or small multis ~$100k. I have read quite a few posts on here talking about how 'saturated' it is and how 'there are no more good deals' there thanks to the sheer number of people looking for such deals. From what we can tell, it still makes sense to buy there (even if cash flow isn't at it's all-time-best).

The point of this post is to ask those of you who have already made an out of state purchase, 'What do you wish you knew before buying your first out of state deal?' Any regrets? Anything you wish you could have done differently? And to those who are considering making their first purchase, what are your biggest concerns/worries?

As prepared as we are, there will always be a tad bit of fear. Or anxiousness. Or whatever you want to call it. Just like many of us are nervous about our very first deal, we too are nervous about our first one out of state. For us, this nervousness does not stem from being unprepared, but rather from the thought of experiencing something we have never experienced.

Any feedback here is welcome, and would be great to start a conversation. Also, if there are any Kansas City agents reading this, we will be coming out there in about a month or two and would love to have some solid connections with an agent who understands the REI side of things. Feel free to DM me, if that's you. :)

Thanks for reading and for any advice you might offer.

Happy investing!