All Forum Posts by: Mike Paolucci

OOS investing is the route I ultimately chose for similar reasons. It was really tough to find property where the numbers made sense in the bay area. I ended up choosing Ohio as my target market and more specifically Columbus. Dayton, Cleveland and other cities are great as well. 

I have both Section 8 and non S8 tenants in my rentals. S8 comes with it's own set of rules but if you have a good property manager, they'll be able to help you navigate those waters and make sure the property is up to S8 standards but the cashflow has been awesome. 

Let me know if you have any questions. 

I had the same issue when I was starting investing and living in San Francisco, CA. Numbers and landlord laws didn't make sense at all. Glad to hear that you're being picky instead of settling! 

If you're open to out of state investing, there's plenty of opportunities for cashflowing properties in Ohio where the numbers and landlord laws make sense. 

Happy to answer any questions about my OOS investing experiences. 

Good luck with your property search!

If you're open to exploring different strategies, look into out of state investing. It treated me pretty well when I was just starting out on my investment journey while living in San Francisco. I ultimately settled on Columbus, OH as my target market because there was positive cashflow from day one, cheaper entry points and landlord friendly laws that won't handcuff both hands and 9 toes behind your back. 

Happy to share some experiences and answer any questions you might have. 

I wouldn't recommend buying a flip or BRRRR for your first deal. You want to limit your risk as much as possible for your first deal or two before diving into heavy projects.

Turnkey single family home that is positive cashflow from day one will be the best way to learn about being a landlord. Get your code 4 (investor focused agent, lender, local property manager, contractor). A good property manager will help with the contractors and make sure you don't get taken advantage of. 

Hey Brock. I grew up in San Francisco and know exactly what you're going through. When I first started looking to invest, it was pretty tough finding a property where the numbers made sense. Not to mention the CA landlord laws aren't really landlord friendly. 

I ultimately chose to explore out of state investing and settled on the Ohio markets. The numbers worked, landlord laws were a lot better and the appreciation has only helped my portfolio.

Happy to answer any questions and share some experiences on OOS investing. 

Good luck with your RE investing journey!! 

Hi @Nakia Addison I started off by investing out of state. I grew up in San Francisco, CA where the numbers and landlord laws just didn't make sense to me. Virtually every property would have been running a negative for years with no guarantee that it would become cashflow positive. 

I ultimately chose to invest out of state in Ohio where numbers made sense, properties were cashflow positive from day one and I had some extra walking around money every month once the properties were stabilized. As time went on, I was able to buy more properties and all have appreciated over the years + rents have gradually increased. 

The key is making sure you have the right teams locally (property manager, investor focused agent, lender & contractors). 

House hacking is also a great way to get started as well. Always recommend that. 

I would suggest getting in touch with an investor friendly agent. They'll be able to find you deals. 

If the numbers don't make sense for you locally then start looking into out of stat markets. I've been investing in Ohio since 2021 where the numbers at still making sense, even with interest rates where they're currently at. 

@Ashley Ernst 

If you're confident that the deal makes sense and is a good buy, then I wouldn't let this be a deal breaker. I would definitely recommend contacting a local Property Manager and get their advice. 

Late rent and potential evictions come with the territory of being a landlord. These kind of things will happen eventually with tenants regardless of market / location of property. 

If the numbers aren't working on local properties, try exploring out of state investing. Check out the Ohio markets (Columbus, Cleveland, Cincinnati, Dayton, Toledo, etc...). I've been finding deals that are cashflow positive, even with a little TLC. 

Good luck on your property search! 

I would connect with an investor friendly agent who is located in the market/near the market you're looking to buy in. They'll be able to source deals for you which will allow you to utilize your time on other, more important things.