All Forum Posts by: Kristy Goelzer

There's different ways to look at the risk spectrum with the different options.

If you stick with Charlotte, you decrease risk because you're local and know the area and can check on your property regularly, but you increase your risk because it's going to cost more money to buy a property and then you're likely going to be looking at negative cash flow every month (I assume, but maybe not...at least lower if not negative), so that is risky because it's your money.

If you go out-of-state, it completely depends on how you do it as to how risky it's going to be. For example, there's a big difference between buying a shack needing a big rehab in a sketchy neighborhood (PM or not) vs. buying a rent-ready/turnkey property in a solid area. The latter is wayyy less risky.

This article is specific to turnkey rental properties, but it can apply to just thinking about rent-ready properties in general... I think turnkeys can be GREAT for new investors-
https://www.biggerpockets.com/...

If you do the out-of-state thing, if you focus all your efforts on learning how to do due diligence thoroughly, that's how you dramatically decrease your risk.

Hope that helps!

Hi Kristy! I am a long distance investor that lives in Colorado but is invested in the Ames Iowa area. You can get a cash flowing 2-5 unit property easily in the Ames area for your 250k budget. I like Ames because it is a cash flowing market but it not experiencing population decreases like many other cashflow markets. My realtor there is an investor himself with about 100 doors and has a management company that manages all of my rentals there. If you would like me to connect you with him please feel free to send me a DM. 

If you have questions about the market here in Florida I'm a native, and have a good amount of local knowedge I can share!

@Kristy Goelzer, I am not from Charlotte, but know enough that you have a very diverse and strong employment base, you are the banking capital.  There are reasons it has appreciate so much.

OOS investing brings its own risks, in my opinion, and/or additional costs to attempt to mitigate (read travel costs a few times per year to check up on).  Small towns can get cash flow, but far more susceptible to dramatic shifts in downturns.  Remember all those GM towns in the financial crisis.  And guess who was able to leave first... the renters, since they have limited financial ties to a market with no limited employment options.

My personal view of risk is: if I am owning directly, I want to own where I can have eyes on the property and know the submarkets inside and out. I also do my own leasing, because tenants are the biggest wild card in returns.  Physical condition and markets you can generally understand risks before buying.  But tenants, particularly those installed when I used 3rd party managers, have not been the best, even though they "checked the boxes".  Shorter overall tenancy, higher turnover costs, and therefore more overall vacancy.

For cash-flow, I'd go elsewhere...but that need not be out-of-state in your case. NC is a great place. (Good evening from Waves on Outer Banks!)

Hey Kristy! 

Charlotte is still a fantastic place to buy rental properties. Getting creative with how you rent properties has been incredible for some investors I know around Charlotte. If you are looking for properties at a lower price point that produce a higher cash on cash return, some of the outer towns are great for this as well (Gastonia, Statesville, Concord, Shelby, etc.) 

Would be happy to connect and give you a hand with any other questions you have and can most definitely help out with recommendations as well! 

@Kristy Goelzer

It’s nice to have you on Bigger Pockets!

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WElcome Kristy. Make sure to listen to the podcast. It's what helped me the most in my investing career. 

I enjoy Queen City properties and people.

You're welcome to message me for a multifamily connect.