All Forum Posts by: Todd Knudson

@Rajiv Bm start by clearly identifying your objectives and criteria and quantifying them. The more specific you are upfront, the easier it will be to narrow down your chosices. If your strategy is long term buy and hold, look for markets with good growth potential and not just immediate cash flow. No one gets rich off of cash flow alone and in fact, on average, only about 1/3 of returns come from cash flow. Real wealth comes from investing in markets with long term appreciation potential and rising rents. Start by identifying states with low to moderate property taxes and insurance and favorable landlord tenancy laws. Then look at the markets within those states that have growing populations, jobs and incomes. Look for markets that have modern/diverse economies and industries. These are the markets that will have the best long term appreciation potential rental growth. Personally I like Indianapolis, Kansas City and the Quad Cities. We've been active in all of them for years and they check off all of the boxes above. Feel free to connect and I'll be happy to share more insight on any of them and how to go about choosing a market.

@Rajiv Bm I have seen great returns in Kansas City for multi family. 

I've decided to look to buy my first true investment property starting out with Out of State rental purchases (i am based out of California)

I'm having a difficult time deciding where I should be looking to buy. I'm considering either a small multifamily (duplex or four-plex) or perhaps a single family that will be easy to rent and cash flow. 

For those who invested out of state, looking for some guidance how did you decide on your market? 

@Todd Knudson, I would ask the following, how active or passive are you with your current investments? Are you self-managing or is there a PM in place? How often do you view your current rentals if problems come up? At the end of the day, out-of-state investing really boils down to having a resourceful and reliable team in place (core four/rockstar team). The biggest con with investing out of state is the amount of time and energy it'll take for you to structure your new team. 

Pros- throw a dart at a map and invest. You can pick YOUR ideal market. Figure out your budget and criteria and then find a city that works well for you. From there, develop a core 4- Lender, PM, Agent, Contractor. You'll want people who have experience working with OOS investors and know their market well. This is crucial to the long-term success of your deal. 

Cons- can't be there. Can't see the paint chipping on the side of the house, or the small leak dripping into the basement, etc. However, with the right team in place this can all be handled for you. 

We see a lot of OOS investors come into Ohio, and if done properly they are often successful. Cannot stress enough how important it is to have a good team on the ground for you!

Beginner. Trying to get our first deal to buy and hold. Analyzing deals off of the MLS but not succeeding.