How We Found, Bought and Rented a Property From Another State

I'm super excited to share that my husband and I recently closed on another rental property.  While we have spent the last year competing with cash buyer investors and getting outbid in what seemed every property we bid on, we were able to add another property to our portfolio. 

However, this acquisition was different than the others as we recently moved and bought this property in the state where we used to live.  Surprisingly, the entire process went very smoothly and I want to share it with you in hopes of showing you that it isn't so scary to invest in properties out of state.

This deal was born from our relationship with our realtor.  We've bought other properties with her in this same area and as a trusted part of our team, she knows exactly what we are looking for and how we typically structure our deals.  One afternoon we received a call from her saying she just got a new listing and it fit right into our parameters.   The best part was that it was a motivated seller because they recently acquired the property after a death in the family and they just wanted rid of it- good news #1.  

The fact that our realtor called us first, BEFORE she even listed it, we were able to make an offer without any other competition because it was a pocket listing.  Had the property been put on the MLS, I guarantee there would have been multiple offers and we probably wouldn't have got the property.  This goes to show that having a realtor who you trust and who knows exactly what you are looking for can really be an asset to your team. In this case, we didn't have to do anything to find the property.

After we went under contract, we had the home inspection to find no major problems.  Like I mentioned earlier, our realtor knew the property fit our parameters.  Therefore, it needed some minor updates: paint, carpet, fixtures, etc.  These small fixes help us force some appreciation on the property almost immediately, especially since we bought the property below market value.

Once we had the home inspection, we started calling previous contractors we used before in this area to set up times for them to go to the property to give us estimates for some work.  All while being over a hundred miles away, we were able to complete these tasks.  Why?  Because we put the work in ahead of time in building a contractor list and building relationships with people in our network who were able to help out.

Once the minor fixes were done, we received a call from a family friend who was looking for a place to rent in the town where our property is.  We had them go over and view the property and just a week later, after completing the tenant screening, we signed the leases and had the property rented.

Morals of the story:

1. Build a trusted relationship with a realtor or partner.

2. Make a contractor list before you invest or while you are working on a property, so if you buy more in that area you already have people to call.

3. It is possible to find, buy and lease a property from another state.

Happy Investing!