Start Building A Real Estate Portfolio Out of State

By Bleys Wright

Born and raised in Hawaiʻi, my real estate journey began in 2021, investing in out-of-state cashflowing assets while juggling my roles as a husband, father, servicemember, and community servant.  Even though the first home I bought was my primary residence in Hawaiʻi, today, I want to share why starting a real estate journey in the Midwest could be a smart choice.

Hawaiʻi is known for its appreciation, but some of the drawbacks are extreme home prices, low rental rates, and strict laws.  On the other hand, the Midwest is characterized as cashflowing areas with low home prices, great rentals, and low cost of living.  Remember that cashflow from a property is not just the gross income minus debt service, but also setting aside money for management fees, vacancies, routine maintenance, and capital expenditures.  After assessing for these fees, most homes in Hawaiʻi have negative cashflow.  If investing in an appreciation market like Hawaiʻi, then be sure to set aside enough reserve funds to cover costs.  If these fees are not being calculated, then that home will either end up being run down or a person could lose that property.

When I started my journey, I decided to join a mentorship because I wanted some guidance jumping into an unknown market and to mitigate any costly mistakes.  I ended up joining WNN Properties whose focus is using the BRRRR Strategy to buy cashflowing properties in the Midwest, specifically Kansas City.

For those unfamiliar with Kansas City, their job market is thriving, with diverse industries such as healthcare, finance, and manufacturing.  The unemployment rate in KC is significantly lower than the national average, indicating a stable economy.  The KC market is one of the most affordable with homes averaging around $200,000.

I bought several rental properties using the BRRRR Strategy in Kansas City.  I learned a lot while investing in that market from evaluating areas, analyzing deals, project management, building a team, and more.  It was only after gaining this invaluable experience, did I start investing back home in Hawaiʻi.  Now I have multiple redevelopments and developments, ranging from affordable homes for locals to luxury builds.

As an investor, I've learned that having a servant mindset while growing is key.  I was able to go further by working with others.  For those starting off, think about investing out-of-state as this may be the best way to start building a real estate portfolio.

Bleys Wright started his investing career in 2021, investing in out of state cashflowing assets including short term rentals (AirBnB) and co-living properties.  He has ground up construction projects ranging from affordable homes for locals to luxury builds.  Bleys strives to help people learn how to have a servant mindset while growing their portfolios.