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OUT-OF-STATE MISTAKE

Was this out-of-state investment a big mistake?

In 2016, deals no longer made sense in my own backyard.

I started searching online and found that I could buy a duplex elsewhere for half of what it would cost in my local market of Seattle, WA.

So I decided to purchase my first-ever out-of-state investment, choosing Indianapolis, IN as my target market.

Which, by the way, felt like taking a monumental risk at the time.

I was investing in an area I didn’t know. With people, I’ve never met. Relying solely on videos and the local team’s word. Something most investors are fearful about when thinking about out-of-state deals.

But there was a thesis I had to test: proving that you can get cash flow and appreciation out-of-state. Even though it was a new experience for me, with all kinds of factors that could go wrong, I took the leap regardless.

Several years later, this property was the reason why I created this community. To fast track your progress to financial freedom through closing deals on your terms.

Because despite being in the industry for 9 years at the time, it took me 3-4 months of research and prep to close this deal.

Most investors in our community now have the tools to close deals in as little as 30 days.

So I thought it might be helpful to reflect with you on how this first out-of-state investment went

Here are the numbers:

 

Purchase price: $155,000

Upfront Renovations: $19,000 which included crawl space remediation, new flooring throughout, kitchen remodels on both sides, bathroom renovations, and attic mold treatment.

out-of-state investment

The property cash flowed roughly $10,000 each year for 4 years, except in 2020 when we did some remodeling and added new HVAC updates, resulting in a $15,000 loss.

Total initial investment: $60,000
Cash flow: $25,000 (less $15k HVAC)
Net Profit Sale: $153,000
Total return: $178,000

I gained a 296% Return on Investment on my first out-of-state purchase!  I ended up using the profits to purchase a 1031 exchange to purchase a 7-unit in Michigan.

And even better, I was able to bust the myth about investing in Midwest properties — deals in the Midwest do go up in value when you buy right.

If I had not taken the leap, I would have never gained the experience and knowledge of buying and selling out-of-state property.
Don’t wait to buy real estate, buy real estate and wait! By wait, I mean wait for all the opportunities that are bound to come.

If it’s something you want to do in 2022, join now and save yourself 3-4 months of learning and making mistakes along the way.

Schedule an investing consultation call and get the support you need to start real estate investing.

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About the Author

Jennifer Beadles

I’m Jennifer Beadles, and together with my family, we are living the day-to-day of a financially independent family thanks to our rental properties.

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