All Forum Posts by: Rafal Soltysek

@Rafal Soltysek

I agree with @Becca F. when considering investing out of state. It can take more capital and reserves because the risk is higher. There is usually more cash flow in lower priced markets and less appreciation. What are your goals with investing? Are you going for cash flow or appreciation. There are some markets that can balance both. I'm in the Reno / Tahoe market and there are STR and MTRs that can still cash flow but the appreciation in the area is going to be strong based on the limited supply of buildable area and the tech jobs moving to the area. True you do need more capital but we care finding cashflow properties with 30% down under 270k purchase price. Weigh all the factors of out of state. Nevada is landlord friendly and low property taxes.

@Rafal Soltysek
I invest in Columbus OH, huge growth to come from recent additions to the tech sector (google, intel, amazon, honda, and many start ups). Plans to were announced last month to invest $2B into the cities airport in anticipation of the population/business travel growth. Low taxes and landlord friendly. 

@Rafal Soltysek

I invest in the San Francisco Bay Area and Indianapolis metro area. I personally would stay local or within 2 hour driving distance. From my brief research, Nevada and Arizona have low property tax rates.  When I looked at Nashville Tennessee the property tax rates seemed a bit high to me as well as Texas, although I do know California investors buying multi-unit in San Antonio (an apartment complex).

I should have bought in the Vegas area. I know a couple of beginning CA investors who have done this. Here's my experience summarized about the Midwest. 

https://www.biggerpockets.com/forums/48/topics/1165499-whats...

The "cash flow on paper" for Class C Midwest (which is almost non-existent with 7% interest rates) will cost so much in repairs, capital expenses, tenant issues and it won't appreciate enough to make up for the losses. My Class A Indy home is doing better but I've owned it for 10 years so not a recent purchase. My property taxes in Indianapolis metro area (2.77% and 2.78% for different counties' rates) increase with no limit (confirmed with agents and local investors) vs. California max 2% increase a year (unless doing significant renovation like adding rooms, an ADU where it's reassessed)

I talked to a very honest Indy property management company who said the people who do well with Class C buy in volume (not your typical beginning investor) because the good properties offset the losers. That just sounds like a huge headache to me, having 20 to 50+ Class C SFHs/2-4 units. I'd take 2 to 4 solid properties in CA or Vegas over that anyday. Good luck!