All Forum Posts by: Mike Paolucci

Quote from @Csingh Singh:

Hello Guys!

As the post shows, I am "starting out" on my investing journey. I currently have my previous home for rent but the property was unfortunately trashed by the Tenant. Following the laws has been a "process" to call it nicely. I wanted to ask if anyone who was originally an investor from CA moved to other landlord friendly states like NV, AZ, TX and found their market and how that has been. 

Any feedback would be appreciated!!

 I'm originally from San Francisco, one of the more liberal and anti-landlord cities in the state. Landlord laws was the main factor why I chose to invest out of state and have been happy with my decision to do so. 

Tenants will trash your property, regardless of what market you choose to invest in. It's the unfortunate reality of real estate investing. That is what makes finding good tenants (pay rent on time, take care of the property and let you know when things need to be fixed) so important. Once you do find them, do what you need to do to take care of them and keep them as long as you can. 

Ohio, from my experience has been a pretty good state when it comes to landlord laws. You have actual rights in comparison to CA and the process is much easier. Toughest part will be figuring out what market you want to target, what teams to trust and employ to manage your properties for you as I wouldn't recommend trying to manage the property yourself. It'll take time to develop the boots on the ground but a good PM will help speed that up. 

Hey @Tanya Maslach. Are you targeting any specific neighborhoods in Columbus?

I started of as an OOS investor back in 2021 out of CA so happy to help and give you some insights and experiences I've had over the years. Happy to also send you a couple of GC's. 

I've had clients buy a SimpliSafe security system and send it to the PM to set up for the property as well as a mobile wifi to make sure it's connected to the internet and notify the police. Depending on which package you buy, it'll come with multiple sensors, a camera and an audible alarm. 

I would also add some motion sensor lights to help discourage people from trying to break in / make them re-think breaking in. 

Quote from @Fiona Layne-Germin:

Recommendations for a novice in real estate investment. Which strategy would be the most suitable to begin with, focusing on long-term growth? I'm not keen on fix and flip.

 I agree with @Nicholas L. If you can house hack locally, do it. It's a great way to keep your living expenses lower than normal as well as build equity & learn what it's like to own rental properties. 

If this isn't really something you're open to doing then I'd probably focus on a turnkey single family property that will get good appreciation over the next 10-30 years. 

Quote from @Loan Nguyen:

Im newbie in real estate investing. I’m living in Bay Area where finding deals that generate cashflow is impossible. Any advice where to invest?

Ran into this same issue back in 2021 while living in San Francisco. I would recommend house hacking a local duplex / quadplex if possible. It'll at least help you reduce your living expenses. You could also look into the STR / MTR strategy to help lighten the load as well but those come with their own challenges.

A high school friend of mine has a duplex little outside of Sacramento area but isn't really cash flowing and ate up a lot of his capital to invest in additional properties. 

I chose to invest out of state because the numbers and landlord laws didn't make sense for me. It was quite the learning experience to invest out of state but I'm glad I made the decision to do it and opened up more investment opportunities. 

Happy to share some of my experiences as an out of state investor. 

Quote from @Arvin Digma:

Hey guys! I'm a real estate investor based out of San Diego, and I currently own a duplex in Vista. Super excited to connect with other investors here and share experiences. I've been diving into real estate for a while now and always love meeting others who are navigating this crazy, but rewarding, journey.

Looking forward to learning from everyone, swapping ideas, and hearing about different strategies you all are using. Whether it's about deals, property management, or anything in between, I'm all in for a good conversation!

Welcome to the community! I started off as an OOS investor back in 2021. Happy to connect and share some experiences!

Quote from @Brandon Morgan:

Hi all i am a new real estate investor and just bought my first rental property a few months ago and now have it all rented out. I have been living in my home I grew up in and next year I am looking to move out . I am thinking since I want to continue my real estate journey if I should buy a duplex and just live in it and rent the other half out as opposed to buying a single family. can a single family home that you live in be considered an investment at all? I live in new jersey. just asking for personal experience or insight. still got some time until I look to move out next year. 

Yes, a single-family home you live in can be an investment property. If you're still living in it, you can rent it out by the room to multiple individuals or even as a live-in STR depending on your risk tolerance & city ordinances.

Buying another single family isn't a bad idea, and neither is buying a duplex. It really depends on what your goals are. 

House hacking a duplex is a great way to start scaling your portfolio to more doors. I'm a big fan of doing that and am house hacking a duplex I bought last year right now. 

Quote from @Tamera McNeil:

Hello,

I am Tamera McNeil and looking into buying rental properties and investing. I would greatly appreciate feedback about buying real estate in the Bay Area. Thank you and excited to be on the BiggerPockets platform. 

If you can house hack, do it. It's probably the best and easiest way to get started investing in my opinion. The biggest issue I found when I started off while living in San Francisco is going to be the high entry points for investment properties + the landlord laws not being that friendly. 

For me, it made more sense to invest out of state in a landlord friendly state. It's not easy though and you'll need to really do your due diligence if you decide to go that route. I'd recommend taking your time when choosing a market and look at all of the economic drivers that are helping the communities expand. Not only out of state, but in-state as well. Don't just randomly pick a market. 

Couple buddies of mine from the Bay Area ended up investing near Sacramento (better price points than the bay). 

Happy to answer any questions you may have. 

Quote from @Alyssa Dinson:

Hi everyone, 

I live in California and have been meeting a lot of investors who prefer to invest out of state due to California being so expensive as well as the aggressive tenant protection laws we have here. I have heard both the good and the bad sides of investing out of state and so I am curious to know what other's experience has been?  I have mostly heard about LTRs specifically in Indiana, Alabama, Texas, Michigan, and Ohio but I am open to hearing anyone's experience anywhere. Would really like to hear your thoughts!

Hey Alyssa. I started off as an OOS investor back in 2021 while living in the Bay Area. Found my deal on Zillow, ran the numbers, pulled the trigger and flew into town to do some of the work myself with the help of some family with experience fixing houses. After we completed the repairs (all cosmetic stuff) we handed it off to my property manager. 

Your PM will be able to help you manage everything from leasing, regular maintenance to bigger ticket items like replacing your roof and managing tenants. With the right PM (I always recommend connecting with multiple who specialize in the types of properties you're buying), they should be able to help you stabilize the property and hopefully keep the tenants for multiple years. 

Whatever way you slice it, you're going to learn a lot from your first rental. Not only what it's like owning rental property & all the responsibilities that come with it, but you'll also figure out if owning property is the right kind of investment for you. 

Happy to answer any additional questions. 

Quote from @Rafael Ramos:

Hey everyone,

I'm looking for some guidance on investing in real estate before the year wraps up. I'm based in the Tampa area, and my business operates in South Florida. I've been exploring options for a multifamily property, single-family homes, and even a luxury condo that could work as an Airbnb.

My primary goal is to find an investment that has good potential for profit and tax benefits for this year. I’d rather avoid anything that could become a headache down the line, even if it means a higher initial cost. I have liquid funds ready, but I want to make sure this is worth my time compared to the 5-6% cap rates I've seen on multifamily units in South Florida, which are close to what I already get from CDs and high-yield savings accounts without the hassle of property management.

I'm also hesitant to invest out of state since I'm new to real estate and don’t want to make a costly mistake. I’m here to connect and get some honest insights—not just a sales pitch—so if anyone has tips on properties or areas with good potential for appreciation and tax advantages, please let me know!

Thanks in advance for your advice and recommendations!

 I would start with local meet ups / networking events to help you scope out what locals are finding success in. Most investors at these events are helpful and good people to get to know and develop a relationship with. 

If you can find something to invest locally in and makes sense, do it (house hacking / MTR / Long term rental).