All Forum Posts by: Mike Paolucci

Hey @Diran Deukmajian. I was born and raised in San Francisco and ran into the same issues finding properties in 2021. I ultimately chose Columbus as my target market and have been pretty satisfied with my decision. 

Pros 
- cost effective entry points which will allow you to scale your portfolio easier. 
- Depending on your target market, you can get decent cashflow from day 1 + appreciation as time goes on (if you target  a market with good population growth and other catalysts) 
Cons:
- in the beginning, not being able to see/go to the property and having to trust a complete stranger with your investment. Sam is absolutely correct about the core4. Those are essential to investing out of state. 

Happy to share my out of state investing experiences. 

Good luck with your REI journey and let me know if I can help out.

Hi Schmel. I'd suggest attending some local meet ups and networking at those events. You'll be able to learn from seasoned investors / agents / lenders and learn from their mistakes. 

As a San Francisco, CA native, I ended up investing out of state back in 2021. The numbers in CA + landlord laws didn't make too much sense to me and imo, if it doesn't make money, it doesn't make sense. 

Keep doing some research and building up capital, get good at running numbers so you're ready to pull the trigger on a good deal. Don't get stuck in analysis paralysis but also don't get too hooked onto a deal. Trust your numbers. 

If you're not able to find any deals that make sense in CA, look into out of state investing. 

Happy to share my OOS investing experiences and answer any questions.

If you cannot house hack, then I would suggest a SFR for your first rental. Less financial liability and wear/tear on your property. You'll learn a lot from your first property regardless of 1/2/3 units, but I'm a big believer in limiting your risks while learning.

Happy to share experiences and answer any questions. 

Hey @Eva S. just sent you a list of PM's I'd recommend. 

Hey @Jonathan Kim have you thought about out of state investing? I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH. 

The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC. 

Happy to share my experiences. Good luck on your REI journey and property search!!

Hi @Cooper Cheon. Take a look at the Ohio markets. I grew up in Northern Cali and ran into the same issue trying to find deals in 2021. The numbers and landlord laws just didn't really make sense for me. I looked into and ultimately landed on Columbus, OH as my target market and I haven't been disappointed with any of my investments out here and I ended up moving out here to really focus on the market first hand. 

The numbers and the landlord laws make a lot more sense as an investor out here. I've gotten a good combination of cashflow and appreciation. 

Happy to share some of my experiences as an OOS investor. 

Good luck on your investment property search! 

I would look for local meet ups to attend and network with people there. There's plenty of people who would likely want to mentor you. You'll want to provide them value by way of working for free. They're investing their time into you so you'll want to give them a good return on their investment as well since the lessons you'll be learning will be valuable for the rest of your REI journey.

Next, look into house hacking your next property. It'll be a great way to make sure your mortgage and expenses are paid down by someone else and you keep your own personal costs low as well. 

If the numbers don't work for you locally, do some research on Out of state investing in a market that the numbers make sense. You'll need to make sure you have your Core 4 (investor friendly agent, lender, property manager & contractors) in place for this strategy. 

There's no need to rush, you're young and hungry. Keep reading/listening to podcasts and learning everything you can. 

Happy to share my experience / answer questions about OOS investing!

Good luck on your REI journey!

Hey @Rafal Soltysek. Take a look at the Ohio markets (Columbus, Cleveland, Toledo, Dayton, etc). When I first started investing, I was living in San Francisco and chose the Ohio markets and haven't been disappointed. Numbers still work and landlord laws are much friendlier out here. 

Happy to share my experiences. 

Hey Nupur. I know the feeling. I'm born and raised in San Francisco and found it pretty hard to find deals that the number and landlord laws made sense. 

I ended up choosing to do that and haven't looked back. I'm not a big believer in running a negative for investment properties. If it doesn't make money, it doesn't make sense. Think about out of state. I ultimately chose the Ohio markets and have been pretty happy with my decision to do so. So much, in fact, that I decided to move to the state. 

Good luck on your investment property search! Happy to answer any questions you might have. 

 

Hi @Norma Guardado, I would reach out to several lenders and compare rates/fees. 

I'd also suggest reaching out to a local agent in your target investment area - they'll have good referrals to provide you for your lending needs. 

Good luck on your investment property search! Let me know if you have any questions.