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960: No Cash Flow in Your Market? How to Invest Out-of-State Like a Pro w/Jessica and Shyd Coloma and Michael Gallagher

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Podcast by BiggerPockets
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Looking for monthly cash flow but live in an expensive real estate market? It sounds like you need to start buying rental property OUT of state. After realizing that real estate investing could be the wealth-builder they needed, Jessica and Shyd Coloma wanted to get in the game. But in pricey Southern California, finding passive-income generating rental properties was next to impossible. So, they began looking out of state. Thanks to BiggerPockets Agent Finder, they met Ohio-based agent Michael Gallagher, and now, just a couple of years later, they have a cash-flowing rental property portfolio!

Michael was able to quickly show the couple which cities offered cash flow, appreciation, and a bit of both, as well as the parts of town that were seeing the most growth. They ended up buying a duplex for under $100,000, saw instant cash flow, and decided they needed more! In today’s show, they’ll walk through all the numbers of their first and second deals, how their rock star agent saved the day multiple times, and what you MUST look for in an out-of-state investing market.

Need an investor-friendly agent? Use BiggerPockets Agent Finder to connect with local agents in your investing area for free! 

In This Episode We Cover

Long-distance real estate investing and how to buy rentals from 2,000+ miles away 

Building your “buy box” so you know exactly what you want in an out-of-state market

Cash flow vs. appreciation and which cities in Ohio offer which benefits 

Finding a property manager remotely and whether local managers beat national ones

Short-term rentals, medium-term rentals, and the strategies to get even more cash flow out of your rental

One huge closing hiccup Jessica and Shyd ran into that you should be on the lookout for

And So Much More!

(00:00) Intro

(01:22) Investing Out of State  

(08:24) $87K First Rental Property! 

(13:07) Finding a Property Manager 

(15:06) 2nd Deal in Columbus 

(23:34) Closing Hiccups and Final Numbers

(29:09) Keep Investing in Ohio?

(31:29) Ready to Invest Out of State? 

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-960

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