The Top 3 Reasons You Should Never Invest in Real Estate Out of State

by |

I can already feel the heat from a lot of you prospective out-of-town investors and existing out-of-state investors, but nonetheless, I still want to talk to you about why you should not invest in real estate out-of-state.

Download Your FREE guide to evicting a tenant!

We hope you never have to evict a tenant, but know it’s always wise to prepare for the worst. Navigating the legal and financial considerations of an eviction can be tricky, even for the most experienced landlords. Lucky for you, the experts at BiggerPockets have put together a FREE Guide to Evicting Tenants so you can protect your property and investments.

Click Here For Your Free Tenant Eviction Guide

It’s Significantly Harder to Find a Good Team From Afar

The first reason is this: The likelihood of you finding the right people to help you succeed in your out-of-state endeavors is next to none. You’ll need to have a trusted real estate agent, a good property manager (good luck with that one), and a good contractor (again, good luck with that one). You’re probably going to have to have a good attorney, accountant, title company, maintenance personnel, and eviction attorney. All of these people are going to be influential to your success.

Another thing that I want to mention is when things turn south, it’s a very long drive to go and try to fix those issues. What tends to happen is when the cat leaves, the mice come out to play. The problem in this situation is the cat is never around, so the mice are always playing. I honestly think you are going to run the risk of being overcharged for absolutely any and everything that you could imagine—for construction costs, property management, and even various attorney’s fees. I think the people factor is very important when it comes to successfully investing in real estate, and I think that finding the right people out-of-state is going to be hard to do.

Related: How Technology Makes Long-Distance Real Estate Investing a Breeze

You Probably Won’t Get the Best Deal

The second thing is you will not get the best deal. Everyone I talk to says they are awesome at conducting due diligence online, looking at all the stats and demographics and all of that mumbo jumbo. Do you really think that you’re going to find a better deal for a better price than someone like me who is in the office 14 hours a day, who has done over 500 deals? I know everyone in town, I’m a cash buyer, and I know every rock to look under. The likelihood of anyone out-of-state or country finding a better deal than me is once again next to none.

So when you are investing out-of-state, you have to understand that you’re probably going to be paying more than you should for the property, and hopefully you’re not going to be paying more than market value if you’re investing through a turnkey company. But like I said, I just don’t think that you are going to get the best deal, and that’s something that you have to add into your calculations when looking to buy the property. Another thing is you’re going to get nickel-and-dimed with miscellaneous costs because again, the cat is not in town. So you also have to take that into consideration when calculating your return on investment. You have to remember to underestimate your income and overestimate your expenses.

Related: Why It’s About to Become a LOT Easier to Invest From Afar in the Next 5-10 Years

Navigating State Laws is Complex

That leads me to the third and final reason why you should not invest out-of-state, and that is the complexity that comes with it. I’m talking about the complexity that comes with setting up the right legal structure. Every state has different laws, from an eviction standpoint and setting up an LLC to lawsuits, all of which an attorney is nickel-and-diming you for. And then there’s also the tax liability of investing out-of-state. Once again, I’m not an accountant, but federal, state, and city taxes are all different depending on your income and the other investments that you have. You don’t know what tax bracket you are going to fall into or what your tax liability is going to be when you are investing in that particular state.

Those are the three reasons why you should never invest out-of-state. If you think I’m wrong, please comment below. Of course, there is nothing necessarily wrong with any piece of real estate as long as the price is right—and that could be out-of-state or out of the country; I just think it’s more likely to be in your own backyard. Thanks for listening.

Do you agree? Disagree?

Comment below!

About Author

Engelo Rumora

Engelo Rumora, a.k.a.”the Real Estate Dingo,” quit school at the age of 14 and played professional soccer at the age of 18. From there, he began to invest in real estate. He now owns real estate all over the world and has bought, renovated, and sold over 500 properties. He runs runs Ohio Cashflow, a turnkey real estate investment company in the country (Inc 5000 2017 & 2018) and is currently in the process of launching a real estate brokerage called List’n Sell Realty. He is also known for giving houses away to people in need and his crazy videos on YouTube. His mission in life is to be remembered as someone that gave it his all and gave it all away.


  1. Christopher Smith

    I’ve done out of state very successfully, but I previously lived in the area, knew it well and already had a PM/agent in place along with other important relationships (e.g., insurance agent). When I have explored other out of state locales it’s always been a no go. Generally older over priced unimpressive properties and questionable management charging excessive fees with no compelling reason to really serve my interest as I’m sure they would do their own.

    So it can be done with good results, but only under relatively selective circumstances.

    • Engelo Rumora

      Thanks for your comment Chris,

      All good things take time and so does finding the right people in the right market.

      It’s a shame that most turnkey companies aren’t genuine as they are suppose to be the “bridge” between a real estate market and out of state investors.

      Much success

  2. Mike McKinzie

    Of course you’re wrong, but there is a caveat. If you are a BEGINNING Real Estate Investor, this is sound advice. But if you check out the latest FORBES 400 richest human beings, most of them own “Out of State Real Estate Investments.” Yes, they are rich enough to have local teams, but the point is, some times you just don’t have a choice as your local market does not have a decent ROI. I see Newspaper Ads locally (Los Angeles/Orange County markets) touting a 1% CAP RATE for purchasing new apartment buildings as if it is a FANTASTIC return. But once you have owned some rental real estate, understand the needs and understand the process, fulfilling your 3 reasons is quite easy. Currently, I own not only in CA, but also AZ, CO, OK, TX, MO and TN. On top of that, I have NEVER even seen my properties in TX, OK and TN. I am buying a business tool, not a hobby. If a seasoned investor has to see their property every day, touch it, work on it, etc…, they are not a Real Estate Investor, they are a Real Estate Hobbyist and are treating their real estate purchase like a stamp or coin collection. For instance, my Uncle ran a Property Management company many years ago, and says the max rentals he managed was 30. He went out and did most of the repairs, became friends with the tenants and personally collected the rent. I told him he was NOT a PM, he was a handyman who collected rent on the side.

    Finding a local team is NOT hard, my TN team is a member of BiggerPockets and most of you know them. My MO team is also a member of BiggerPockets. My TX/AX/OK team is a nationwide company with over 20,000 SFR’s under management. Surprisingly, the hardest place to find a good team is right here in my backyard, just 180 miles away, in Visalia, CA. I drive up there, drive up there, drive up there, over and over, and still can’t find a good team. I use YELP, BBB, testimonials, call current clients and more, and still can’t find a good team. I am currently on my 5th PM in 10 years, and I interview them in person. So being local didn’t help at all.

    And finding local Tax Laws, Rental Laws, Demographics, etc… is has hard as typing “” So remember, you are NOT buying a ‘stick and stucco’ building, you are buying an income stream and a possible appreciation path. Getting personally and emotionally attached to a structure is not conducive to maximizing cash flow.

    • William N.

      Mike, Thanks for your post! Can you please share the PM nationwide company with over 20,000 SFR’s under management that you use for your TX/AZ/OK properties ? I ‘had’ a 4plex in San Diego, CA and sold it because each year at tax time my profits were being heavily eaten up by CA State Taxes- you can’t escape Federal taxes… So, I made the hard decision to sell and since there was a CA to TX BOOM going on at the time, I bought 4 units back in my hometown of DFW TX (Arlington)… Gosh, did I get a earful from locals where I bought- They called it the CA INVASION- they were angry because property values were being driven up by this flood of CA folks willing to pay more than market rate for multi-unit properties- which they claim has made it impossible for them to afford to live in their own homes due to increased property taxes and having to sell their homes and move to poorer neighborhoods. Rental rates supposedly increased as well- so the renters are also mad at the Californians coming in and taking over- costing them money. I had to immediately explain that although I live in CA- I’m indeed a DFW TX Native and from the area- and that shut them up. Most definitely Property prices & Renovations were way cheaper, but no luck finding a good PM company- Did all kinds of research and hired a couple- I paid one to perform thousands in renovations while they were managing and I did not renew the contract because they went under right when my contract ended- come to find out they did not even perform the renovations they billed me for! So, not being on the ground yourself- as an out of state landlord- I felt quite helpless & angry, but nothing I could do about it. Even though I moved my multi-unit RE Investment to TX- I remained living in CA and quickly learned that I was still being taxed on my TX property income- So, I didn’t accomplish much by moving my investment to another state- except feeling helpless- with nobody found I can trust except my family who lives near the property- but they are ‘over’ doing favors for me and I can’t rely on them any longer. So, YES, learning & knowing different state tax laws is a priority in deciding to buy out of state. So, now, I’m considering moving my permanent residency to NV because they don’t tax income from out of state RE Investment Properties… I also learned they also don’t tax my Retirement Annuity Income- So, now I understand why lots of folks who live in NV own Rental Investment properties in TX- or vice versa ! I”m glad Engelo Rumora posted this article- it has stimulated much needed conversation on the topic- and so many varied responses for and against- Interesting reading.
      Thanks So Very Much : )

  3. Cory Burgess

    I agree that these are all challenges, but, especially for new investors, there isn’t anything unique about learning all of this in another state vs the state you live in.

    Is is like because you live in the state you have a lot better knowledge of which realtors or Peoperty managers are good, or the legalities of everything.

    Unless you are a lawyer starting to invest in properties, I don’t see any of this as super unique to out of state investing vs in state.

    Especially if you are investing in areas of the state you live in, but areas you’ve never lived in nor know anyone in.

    Do your due diligence either way, it may be s “little” bit more challenging when out of state, but no where near the extent that this articles suggests imo.

    • Rebecca Jackson

      I agree. Whether you are understanding the conditions and demands of your local market or out of state, the process is the same. My husband and I are younger in our investing career and have purchased out of state property in TX and FL, sight unseen, and will continue to use our model.

      We do the one critical thing really well- we build teams. We create a presence even though we are not physically there, and we communicate clearly and consistently. Each member brings strengths and we use their expertise as guidance towards our goals instead of micromanaging them. We also show appreciation for their work, because that adds fuel to the team fire.
      You can invest next door and fail if you don’t work with a solid team.

  4. Rodel Usam

    This article should be titled, what to watch out of when investing in real estate out of state. The big questions i want answered is, how did you make your fortune investing in real estate? Do you live “all over the world”? Why the the title says “never” invest out of state? Promoting fear in investing out of state is stupid coming from a person who did/does exactly that.. how do i block stupid articles like this??

  5. Joseph Lopez

    So the guy who invest in real estate around the world writes an article titled “The Top 3 Reasons You Should Never Invest in Real Estate Out of State”? C’mon Engelo, a better title would have been “things to watch out for…” or “When investing out of state, do these XXX things first!”. Your article does have some good content, but you are portraying the information wrong and I would rather seek wisdom from people that have details to share without the doom and gloom philosophy. We are here on BiggerPockets because we are thirsty for knowledge and appreciate the collaboration between all of us in whole on this forum. I’m optimistic you may gain some wisdom and continue to use your talents in a more spirited way than to provoke discontent in our industry.

  6. Tim Jensen

    For the most part, I think this is a good article with factual advice

    I’m sure there’s going to be a number of people who claim they can do it and be successful. These folks are the extreme exception

    You don’t have to live in the same town, however it makes investing so much easier. There are little idiosyncrasies to each market that you can only really learn by working in a market.

    One poster said that if you have to go by and look at your properties, you’re probably a real estate hobbyistplay one posters said that if you have to go by and look at your properties, you’re probably a real estate hobbyist. what a load of garbage. Going by a checking up on your property it’s called being a smart investor. I don’t know anybody who doesn’t at least look at their investment every so often.

    do I sync people can successfully invest out of state? Absolutely. However, investing close to wear you live is much more practical. I think people who like to talk about investing of state are trying to beat there check and let us know how great of investor they are.

  7. Monique Vandenberg

    This is ABSOLUTELY TERRIBLE ADVICE. The fact that BP allows this content to be published makes all of their content suspect!! I’m just glad I know better and therefore am not taking this to heart. If you live in expensive state like I do, then you are well aware that the ROI in California makes no sense. I’d like to know where you live … because if it was here you would be very foolish to invest in the market for long term cash flow.
    BP you should filter your content better!!!!

  8. Russ NA

    While the author brings up some very good and useful points, the headline is obviously incorrect and designed to enlist a reaction from people. The true answer is “it depends”. As with everything in investing, there are risks and associated rewards. If the risk-to-reward ratio is high enough, then investments out of your local area can make sense. As a previous commentator mentioned, if the ROI (Return-On-Investment) in your local area is very, very low (like Los Angeles), then it may make sense to look elsewhere – providing that the additional return on your investment is greater than the potential costs and hassle of investing from afar. What would be additionally useful to the reader of this article would be suggestions on how to evaluate risk / reward and how to make investment decisions that are lower risk than perceived by the market, and are higher return than perceived by the market. Some investments look risky, but in reality they are not too bad. Some look like low-risk but in reality are actually a disaster in the making. It’s the ability to look at an investment and determine this risk level that (in my opinion) is the determining factor in investment success.


    • Engelo Rumora

      Thanks for your comment Wayne,

      Quite a few folks have mentioned their displeasure with the heading.

      To be honest, I’m quite satisfied with it.

      Article headings are suppose to capture attention and make people stop and think.

      I never claim to be right or wrong in my blogs.

      I’m just happy sharing my opinion with other investors.

      I wish you much success

      • Scott Rose


        After reading the article and thinking about the message, I agree that your title did exactly what it was meant to do – it caught my attention. It also brought up some good points for me to think about as I look out of state (I currently live in Hawaii, so local investing is tough). What I would like to see now, coming from someone with your experience, is tips and guidance on how to get by some barriers.

  9. Marty Garcia

    So you say no, Brandon says yes. Definitely a confused message.

    While I agree that there are some things to be careful for, I think it’s rather disappointing to see such drastic mixed message from the same company.

    I share most of the same issues you mention dealing with properties in my own area as well. Am I being taken advantage of “less” at home? Not likely. I still have contractors no show, PM issues, etc.

    • Tim Jensen

      I’m going to assume you’re talking about Brandon from BiggerPockets. I think the big difference is Brandon had already had people on the ground in his old area.

      That would have a big impact on whether to invest out of state. I live in Illinois and have been doing it in my area for 27 years. I could probably continue to do it from a different local.

      No matter what anybody tells you, it’s much easier to trust and verify if you’re within 4 hours driving distance of the property.

    • Engelo Rumora

      Thanks for your comment Marty,

      If Brandon and I where the only bloggers on Bigger Pockets then your comment would make sense.

      There are hundreds of bloggers with hundreds of opinions.

      You need to syphon through them all and decide which one suits you best.

      If you get easily influenced by someone’s opinion, you have lost before you even started.

      This is just my opinion.

      Much success

  10. Desiree Jones

    Engelo, I agree with this article only in the position of having a multi-family property out of state wherein I feel that with rental property, a Landlord should be with close traveling distance from that property in case something happens. I believe in the hands on approach when it comes to multi-family properties.

    But if you are Fixing and Flipping (Re-Selling) a property, an Investor can successful both out of state as well as close to where they live. It’s all about taking the time to do your homework—proper research in terms of knowing the market in the area you buying & flipping in. In addition, it is important to thoroughly shop around for Attorneys, contractors, title insurance companies (and find out their rates). Then from there make a decision as to who you are going to work with.

    Investing out of state shouldn’t be something an Investor just jumps and does 1, 2, 3 without making sure all of their ducks are in a row, as well making sure that they are getting a property at a good price, of course.

    By the way, an Investor can get nickel and dimed by attorneys, contractors and property management companies in their home state, if they are wise and don’t shop around.

    • Desiree Jones

      I apologize for the typo(s).

      In my last statement, I meant to state:
      By the way, an Investor can get nickel and dimed by attorneys, contractors and property management companies in their home state, if they are not wise and don’t shop around.

      • Tim Jensen

        I agree with you. However when you’re in your home area, it’s a lot easier to check up on these people then if you’re not in the area. For example, you can ask other local investors what they think of an attorney or property manager. You can also drive by a property managers units and see if they are up to Snuff

    • Engelo Rumora

      Thanks for your comment Disiree,

      In my opinion it would actually be easier to invest in multifamily out of state then by fixing and flipping like you suggest.

      There are many moving parts when fixing and flipping meaning that many things could go wrong.

      Thanks again for your comment and keep doing great things

  11. john pascal

    Thank you for this article ! I have been an long time real estate investor who has taken the wrong path more than once. Even with a partner in the state we were investing in.. still had problems with communication and just finding good professionals to help along the way .. it’s a lot of extra work if you not in the same city or town but
    as someone said in one of the replies .. if the price is right it may be worth the effort.. but be warned !
    Real Estate is not like owning other kinds of investments .. once it’s yours there are immediate responsibilities
    It’s hard to turn back once your in the owners seat.. be careful !
    It can be done but for me it’s worrisome to take on an out of state investment.
    Quick turn around might be ok but you almost need a team with the property is located which as it was said
    is hard to build while you trying to operate your new investment.
    thanks john

    • Engelo Rumora

      Thanks for your comment John and sorry to hear about your troubles.

      I’ve seen and heard more horror stories over the years then good ones when it comes to investing out of state or country.

      It takes a lot of time in sourcing and establishing relationships with the right people.

      I wish you much success with your future endeavors and don’t give up

  12. Patrick Liska

    sounds like you have not had success in out of state properties, i have 7 of them, had to walk away from one, flipped 2 and in the process of possibly purchasing another, i have not had any of the problems you describe, as a matter of fact i have had PM’s call me asking me for contractors numbers in the area and i live 3 hrs away from my properties. this may be a problem for 1st time investors, but even they can have success if they run their numbers right and know what they are doing.

  13. Craig Browning

    I hate articles that sensationalize for attention grabbing, using things like exaggeration to get attention – they have a word for it it’s so common, ‘clickbait’, but it’s a form of dishonesty.

    There’s a big difference – for a reason – between the article’s headline, the clickbait, “you should never invest in real estate out of state”, and the article’s far lesser conclusion the ‘the odds are better’ of a good deal locally.

    It even goes so far as to admit there’s nothing wrong with investing out of state – just those odds of a good deal are worse.

  14. Marc Troslen

    Right on! From Engelos’ own bio, “…from there, he began to invest in real estate. He now owns real estate all over the world and has bought, renovated, and sold over 500 properties…” So how did Engleo do it without babysitting all of his properties? Buying on Southern California is a monster challenge and Texas has monster property taxes (Property in CA costs a lot, and I mean a lot, taxes on those properties are brutal. I would have NEVER got started if I didn’t choose another state. Is it perfect, nope. But, I and from reading other posts here others made it happen. There are hardly any backstories about how the writer got started with BP articles lately.

    Brandon had a webinar recently on buying properties in a competitive market, that market was low-level properties in Charleston, SC – really?. I challenged Hawaii Brandon and other BP associates to buy in NY, MA, TX, NJ, and CA and see how it goes. So we the subscriber could really learn something. Brandon has the loot to take a flyer on an expensive property in one of the states I listed above. But, all we get is Aberdeen, WA (Brandon’s hometown/ area and a few minor deals elsewhere. Meanwhile, all we get is buy a buddy’s book and get a free webinar and you hear Brandon telling you not to waste your time watching “Dancing with the Stars,” (I don’t). Super aggravating, Apparently, the Aussie has properties in other areas. So what was the point of this article? Why not just list the challenges instead of telling us that live in expensive states how to do your best. Captian Aberdeen doesn’t promote any Seattle purchases…why not? BP start grabbing the bull by the horns already.

  15. Joanna Ling

    I agree if the investment is in residential type of properties either single or multi family. If you are investing in commercial retail like those NNN franchise, i think it should be OK. Hope to get more feedback on this because I am currently look for this type of property foe 1031 exchange.

    • Engelo Rumora

      Thanks Joanna,

      Multifamily and commercial is safer than single family when investing out of state.

      If you’re just starting out, you should probably start slow and small.

      Single family is the best way to start.

      Just my opinion.

      Thanks again

  16. Karen O.

    If you live, say, in NY or CA, investing for the best return within your state may still take you 3+ hours away from homebase. From NYC, it could be more lucrative to invest in Eastern PA or CT than Western NY. So, the issues would be the same.

  17. Brad Sand

    First of all, I don’t think you need to apologize for doing your job. That job being grabbing a reader’s attention so they read your article (referring to the article title). And also for presenting your opinions in a sensationalist manner in order to educate others. It just seems that many people aren’t getting why it is presented this way, but it seems to be working, since it is stirring up some discussion and i’m sure it is getting many readers to think.

    That said, there are pitfalls to investing in “your own backyard” as well as out of state. And any real estate investor or potential investor, would be wise to do their homework, acquire the knowledge (or find someone to trust who has the knowledge) for what and where they are thinking of investing in.

    The first rental properties I bought were out of state. They hadn’t performed as I desired, but that was due to me not doing my due diligence on the local market, not directly related to being out of state. I should’ve looked at more data and research to see if that specific market area aligned with my investment plans. My property management was pretty good the entire time I had owned them. That was luck of the draw, but I have since learned of other ways to find good PMs. I had owned these rentals for almost 20 years when I decided to sell them. I attribute the lack of their appreciation of these properties, to my lack of research, as opposed to my out of state investing choices, since I had done well with other properties in other states. And I had never seen the properties or have ever been in that state.

    I learned that I don’t want to be “friends” with my property managers, because then that means I am probably having too many issues with my rental/s. If I forget their names, but see a full check or deposit every month, then both they and I are doing well.

    At the moment, I have great property managers for my out of state rentals. One of the ways I found them was first by searching on NARPM (National Association of Residential Property Managers) for qualified managers and checked out their designations. Then I called and interviewed them and checked their references, etc. It isn’t rocket science. The worst property manager I ever had was a local company who I hired to manage a local property I owned. They were absolutely terrible and it had nothing to do with being out of state.

    And as someone else said about a real estate hobbyist, being someone who likes to go around and see and touch their investments. I sorta agree with that sentiment. That is a very limiting way of thinking, if you can only invest in properties of which you can reasonably drive to. In this modern age, we have amazing resources from the comfort of our own home. There is no reason why we can’t invest wherever we choose. Albeit, it would be wise to actually use those resources during the process. 🙂

  18. Nicole Heasley

    Love this article. I live in northeast Ohio which is plagued by out-of-state investors because of our “low prices.” Their properties tend to be poorly managed and become an eyesore in the communities. They don’t understand our markets AT ALL and make poor investment decisions. They also tend to skip out on taxes, depleting the community of necessary funds. Many cities and townships are implementing rental registration fees to crack down on some of these issues.

    The only positive is that they inevitably become great opportunities for local investors like myself!

    • Engelo Rumora

      Thanks Nicole,

      Majority of folks that are investing out of state don’t know what they are doing.

      Only a handful have mastered it.

      Those that are investing out of state and not buying turnkey are taking on huge risk in my opinion.

      Much success

  19. Chris Bluntzer

    So explain this… if I live in Florida it’s OK for me to invest there. If I don’t live in Florida it’s not? Sorry, but this makes no sense to me. It’s the same market, requiring the same hard work, due diligence, supervision and attention, regardless of whether I “live” in Miami or not. I am not suddenly exempt from doing my homework and market research just because I’m investing in my home town. In fact, if I’m investing in a new market, I will be even MORE careful and thorough in vetting and managing my investments. I am less likely to be sloppy because of my familiarity with the market.

    Allow me a personal example. I am a real estate broker, investor and builder. I felt that the market here in Miami was getting expensive and overpriced and that attractive deals were getting too hard to find. So I sold part of my portfolio here, did some research and decided to look at real estate in Texas. I eventually chose a market, made multiple trips there, spending many, many hours driving neighborhoods day and night, speaking to realtors and brokers and finally chose one to work with. It has been an absolute home run!

    To begin with, I was able to use my experience in Miami to spot areas and deals that locals overlooked. Quite simply they couldn’t see the trees for the forest. Sometimes our familiarity with a place makes us blind to the opportunities there. By coming in with fresh eyes and a different point of view, I was able to buy great properties that were overlooked by local investors. We started by renovating and reselling homes and did so very profitably until, as in most places, that field got overcrowded during the last few years. So we switched gears and started buying foreclosures. We bought, renovated and sold or just wholesaled multiple properties until end users started showing up at auctions and bidding up prices. They were buying homes to actually live in that they couldn’t find on the MLS because of the limited inventory. We’ve since moved on and left that market to the retail buyers and big money investors who are content with much lower returns. Our next step has been to develop single family projects… so far so good.

    Eventually, when the market cycle turns and softens and land and labor prices fall, we plan to build or buy and rehab larger rental properties. Granted, all of this required huge amounts of work, but no more than I would have done here in Miami. I simply found a more attractive and profitable market out of state and was fortunate to have a great partner there. Sometimes the grass REALLY IS greener on the other side of the fence.

    My advice: Don’t be afraid to invest away from home, but be damned sure and do your homework!!

  20. Ralph R.

    I think the mistake was made when you used the word NEVER. I bought properties from Alaska in the lower 48, put teams together to manage them, and still own those properties. one property was purchased at 160k, and was appraised at 210K before closing. I bought NO properties off the MLS, all were purchased off market (under those same rocks you look under) I got owner financing deals, and I even bought 2 sight unseen properties. all from 3000 air miles away. Today I live in the lower 48. My farthest property is 5 hrs away. I still have not seen one of my properties. All are producing good income and I still use those same teams to manage them. I have closed 1.5 million in deals in the last 12 months so im not as sophisticated as you, but im no slouch either. I use the same banks, lawyers, PM’s and realtors today that I used while in Alaska. it is NOT hard to put teams together on the phone, to find managers over the phone, or learn laws in different states. The words NEVER or Can’t or IMPOSSIBLE are all words that inspire true entrepreneurs and discourage the bulk of the population. Your article would have been more constructive if it had been written to show the DRAWBACKS and POSITIVES of out of state investing. To say NEVER on a website that thrives on entrepreneurial personalities is just asking to get negative responses

    • Engelo Rumora

      Thanks Ralph and well done on your success.

      I’m an entrepreneur and business owner and not a book writer/publisher.

      I don’t write “politically correct” content but rather share my opinions which are based on my perceptions.

      Folks that aren’t happy from within will never be happy with anything or anyone else.

      The true “entrepreneurial personalities” that you mention are to busy doing great things like producing more jobs for society rather then venting their frustrations because of an article heading.

      The folks that responded in such way aren’t entrepreneurs at heart in my opinion.

      Much success

  21. Brian Adamo

    I live in Del Mar, CA where not one home is under $1 Million. So I went to Reno, NV where my sons moved and purchased a 2/2 rental. I self-property manage because I spent adequate time to get the the best tenants I could find. I know this will not be the case always, but sometimes it just works. BA

  22. Kyle Knapp

    Generally, when the term NEVER is used it is very easy to be proven wrong. I understand the point of the article, but hate the use of the word never in the title as it makes assumptions about the reader for the sake of a provocative title. I don’t really disagree, I just wish a more appropriate title was chose because there are certainly plenty of people who should invest out of state.

  23. Joe Lantrip

    After reading many of these replies it amazes me how picky some of these people are! Geez! Yes, maybe the title is not EXACTY Accurate, but it DID grab my attention enough to read the article, which does not happen very often. But, your content is Mostly Spot On! Thanks for your post as it made a Lot of sense to me, and I have experienced many of the same issues as you note. As a matter of fact, my PM in one of my out of area properties aggravate me at least 2-3 times per year, and I contemplate replacing them, but then I would still probably have the same issues with others. Nobody manages your property like you can manage your own properties! Thanks again! Joe

    • Engelo Rumora

      Hi Joe,

      Thanks for your comment and I appreciate your kind words.

      At the end of the day, it’s folks posting on my blog and not me on theirs.

      So as you mention that even if the heading isn’t ideal, it still captured the attention and influenced a reply.

      I wish you much success with your endeavors.

      ps. See my comment above to Brian. It’s important to pass on as many roles to the right people because that will enable you to grow your real estate business.

  24. Roger Edington

    I live about 15 miles north of Indiana in Michigan. I grew-up in Indiana and work there, so I don’t really consider it out of state. I heard that Indiana is Landlord friendly, not only that, but there are many inexpensive properties there, which would be 3-5 times as much where I live. I haven’t started investing yet, but it will most likely be in Indiana because of the numbers work out better.

    • Engelo Rumora

      Thanks for your comment Roger,

      It seems like you are situated in a great spot to take advantage of investing out of state even tho it’s only a short while away.

      I’m based in Ohio and the Michigan border is 2mile North of me.

      Much success

Leave A Reply

Pair a profile with your post!

Create a Free Account


Log In Here