Comments on: Is Investing in Real Estate in Other States a Good Idea?

By: Robert Feol

Robert Feol — Tue, 16 Oct 2007 14:43:48 +0000

This is such an interesting topic. I agree that the most sensible technique is to stay in your ‘backyard’; however, when your backyard is overpriced such that getting into an investment carries with it incredible risk with marginal upside, it may be time to look at out of state investments.

My business partner and I live in Memphis, Tennessee - considered one of the top places to invest in the US today. I will tell you, we sold almost 30 investment properties last month, almost exclusively to out of state clients. Now these people are having success with these investments, but it is because we have a team in place that allows them to sleep at night and sets them up for success. This is ESPECIALLLY important with property management!!!

I guess the point is, profitability does exist in out of state investment homes; you need the support infrastructure to make it work, and DO YOUR HOMEWORK!

By: Mike Taylor

Mike Taylor — Tue, 16 Oct 2007 12:35:29 +0000

I agree 100%, it all about getting a great management team that will make sure you have good tenants that not pay but keep the property up as well. I think if you buying out of state you really to be in it for the long haul.

By: Jerad Kaliher

Jerad Kaliher — Tue, 16 Oct 2007 06:57:54 +0000

I think this really comes down to a question of how large your portfolio is and what type of management team you have in place. For someone with a few properties it might be disastrous to have a few spots that are further then driving distance. It might just be a matter of practicality and common sense. I guess it just ain’t that common though, is it?

By: Joshua Dorkin

Joshua Dorkin — Mon, 15 Oct 2007 16:43:09 +0000

Thanks everyone for your comments!

Technogeek - We’ve written a few articles that address your questions. Take a look at our article directory and you’ll find them under the heading Landlord & Property Management Articles.

By: technogeek

technogeek — Mon, 15 Oct 2007 16:26:30 +0000

Seems like the management is key. Not being able to personally oversee the details gives me a bit of a fright. I like to be sure everything is working well. What techniques or successes have you had in hiring good management?

By: james

james — Sun, 14 Oct 2007 18:06:53 +0000

I am an investor that lives in California and Italy. I have found Texas to be a great place for single family investments. I have bought a few properties through Blake Venture Corp. They specialize in selling investment properties.

I think it is great to invest in different markets but it is important to have a good management company. I also owned some rental property in Arizona but ended up losing money because the property manager was terrible. My house sat vacant for 4 months. As soon as I switched companies, the house was leased in 2 weeks.

By: john

john — Sat, 13 Oct 2007 20:08:39 +0000

I think you have to find a good management company if you’re going to buy property out of state, or, as you said, have friends or family in the area who can check up on the property and the management company from time to time. The key is knowing the area you’re buying in. A lot of people put themselves in tough situations that got into the real estate bubble late in the game from buying out of state, in places like Las Vegas, and then with risky loans that were based on property values increasing.

There are companies, like Trada.com, that enable investors to buy property out of state and handle all of the management concerns for the property. They do research and build in locations where long term growth is good - states like Idaho, Arizona, Texas, Washington…