{"id":131351,"date":"2020-10-30T15:00:53","date_gmt":"2020-10-30T21:00:53","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=131351"},"modified":"2021-03-16T17:04:32","modified_gmt":"2021-03-16T23:04:32","slug":"find-property-manager-out-of-state-rental","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/find-property-manager-out-of-state-rental","title":{"rendered":"How to Find the Right Property Manager for Your Out-of-State Rental"},"content":{"rendered":"<p>Imagine receiving a $20,000 check to purchase a rental property. How about step-by-step guidance from some of the most experienced real estate investors in the industry? Well, that&#8217;s exactly what the <a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/steverozenberg-2\" target=\"_blank\">Dream Investment Adventure Series<\/a> is all about.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-131298\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/10\/Dream-Investor-Adventure.jpg\" alt=\"\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/10\/Dream-Investor-Adventure.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/10\/Dream-Investor-Adventure-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<p>Follow along with our contest winner, Joe, and his journey of purchasing an out-of-state rental property. Through the mentorship of Steve Rozenberg, Head of Investor Education for Mynd Property Management, they learn about investing. Throughout the next two months, the pair will research markets, build a team, purchase a property, complete a renovation, lease the property, and everything in between without Joe ever seeing the property in-person.<\/p>\n<p>Previously, we discussed <a href=\"https:\/\/www.biggerpockets.com\/blog\/learn-invest-remotely-joining-dream-investment-adventure\" target=\"_blank\" rel=\"noopener noreferrer\">investing goals and strategy<\/a>. Then, we helped Joe <a href=\"https:\/\/www.biggerpockets.com\/blog\/determining-market-invest-remotely-dream-investment\" target=\"_blank\" rel=\"noopener noreferrer\">choose a rental market<\/a>.<\/p>\n<p>This week, in episode 3, we will learn about the team Joe assembled in Atlanta. Joe is finding his Realtor and property management company. He also goes through the process to narrow down where to look and the next steps to take on this out-of-state investment journey.<\/p>\n<h2>Dream Investment Adventure Series &#8211; Episode 3<\/h2>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/xAz4ZlqIGfk\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>How to Find a Property Manager for Your Long-Distance Rental Property<\/p>\n<p>After searching through the <a href=\"https:\/\/www.biggerpockets.com\/forums\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Forums<\/a> to find people actively sharing their knowledge about the Atlanta area, Joe noticed a few that stood out as the experts. So he contacted them, and ended up Joe developing a strong rapport with Nick Fitzpatrick. Nick is a Realtor in Georgia, who is also an investor and has experience working with out-of-state clients. Having done a BRRRR deal himself, Nick was the logical choice, as he understands what Joe is looking to accomplish with his investment property.<\/p>\n<p>With the guidance of Nick and Jessy Porter, a rental property manager from Mynd, Joe used their expertise to identify neighborhoods that fit his strategy and goals. With his local team solidly in place, below Joe shares how they determined where to look for investment opportunities.<\/p>\n<h2>How to Choose the Right Area to Invest Out of State<\/h2>\n<h3>Using the expertise of your team is key<\/h3>\n<p>Initially, Joe and Nick were looking at some rental properties in the city center, which had good appreciation numbers. However, they couldn\u2019t make the cash flow numbers work. Jessy suggested staying clear of that central city area for rentals. This exemplifies the importance of having a local team\u2019s feedback. Their knowledge and experience are valuable assets when long-distance investing remotely.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/2015-05-10-invest-out-of-state-how-to-analyze-a-city\" target=\"_blank\" rel=\"noopener noreferrer\">Looking to Invest Out of State? Here\u2019s How to Pick and Analyze a City<\/a><\/em><\/p>\n<p>With city-center properties off the table, it was time to find neighborhoods in the suburbs that would be within the budget. They also looked for good performance on appreciation and those offering good cash flow. Joe asked both his property management company and Nick for their suggestions and looked for the overlaps.<\/p>\n<p>The whole team agreed on the Douglasville\/Lithia Springs area that offers an easy commute into Atlanta, good appreciation, and cash flow. It is important to find third party, unbiased parties. They will help you take the emotion out of your deal and use data and numbers to support your strategy.<\/p>\n<h3>You don\u2019t need to be the expert\u2014hire the expert<\/h3>\n<p>Joe has put together a strong team in Atlanta. Nick offers familiarity with the BRRRR process, knowledge of the real estate market, and local contractor contacts. Mynd&#8217;s property management experience lends their expertise with the local rental market, renovations, and getting property rent ready.<\/p>\n<p>Joe didn\u2019t have to explain the BRRRR process either. Each of the experts was already familiar with it. They have a thorough understanding of what Joe is trying to accomplish with this deal and the knowledge to get him there.<\/p>\n<p>This is a great example of local experts having a well-rounded understanding of the investor&#8217;s strategy. Furthermore, they understand Joe&#8217;s goals, as well as what makes the market different and unique. With this team of a Realtor and property management in place, Joe was able to gather the information he needed to make a decision. Because of the team, he knows where he wants to purchase his out-of-state rental property!<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/core-four-real-estate-team\" target=\"_blank\">The Core 4 Members Vital to a Profitable Long-Distance Real Estate Investing Team<\/a><\/em><\/p>\n<h3>Develop a list of potential properties for purchase<\/h3>\n<p>Over the next week, Nick will be sending Joe several properties that meet his criteria. Mynd Property Management will run a rental analysis on each to determine what the properties could rent for. It is important to look into very specific neighborhoods, with very similar property types (similar number of beds and baths) and pull comps to get accurate rental numbers.<\/p>\n<p>Joe will then plug these numbers into the <a href=\"https:\/\/www.biggerpockets.com\/calc\" target=\"_blank\">BiggerPockets Calculator<\/a> to determine the cash flow projection.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/2013-01-19-real-estate-math\" target=\"_blank\" rel=\"noopener noreferrer\">Rental Property Numbers So Easy You Can Calculate Them on a Napkin (With Real-Life Example!)<\/a><\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-107375\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/02\/opportunity-zones-map.jpg\" alt=\"map with red location markers\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/02\/opportunity-zones-map.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/02\/opportunity-zones-map-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>Create criteria and stay within it<\/h3>\n<p>Steve suggests Joe set up some parameters to make it easier to give a clear &#8220;yes&#8221; or &#8220;no&#8221; to the properties. These criteria may include:<\/p>\n<ul>\n<li>What ROI are you willing to accept?<\/li>\n<li>What amount of cash flow must you have?<\/li>\n<li>How much are you willing to put in for make-ready\/rehab?<\/li>\n<li>What type of gain are you looking for in the ARV (after repair value)?<\/li>\n<\/ul>\n<p>All criteria should be stated as percentages. Create a spreadsheet that will calculate these numbers and reveal a clear &#8220;yes&#8221; or &#8220;no,&#8221; and you will avoid the &#8220;maybes&#8221; that can get you in trouble.<\/p>\n<h3>Time to find some deals<\/h3>\n<p>Joe will leverage his entire team to compile a list of potential properties that fit his criteria. While Nick is busy looking for houses through his resources, Joe can also check out <a href=\"https:\/\/www.biggerpockets.com\/real-estate-listings?property_listings=true\" target=\"_blank\" rel=\"noopener noreferrer\">the BiggerPockets Marketplace<\/a> for possible investment deals to send to Nick.<\/p>\n<p>It is important to include Mynd\u2019s feedback in the selection process, as well. This is because they will be the ones managing the home after the purchase. Joe will utilize their experience in the Atlanta market to make a smart investment decision.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/2016-06-17-building-teamultimate-guide\" target=\"_blank\" rel=\"noopener noreferrer\">How to Hire Amazing Team Members for Every Real Estate Process\u2014From Finding Deals to Renting Them Out<\/a><\/em><\/p>\n<p>This whole process really highlights the importance of choosing a local team\u2014especially, if you are a long-distance real estate investor looking at out-of-state rental properties. Finding a real estate agent and property management company is just the beginning. You may also want to consider finding a local lender, contractor, joining a virtual online community, and getting to know other investors in the area.<\/p>\n<h2>Homework Week #3<\/h2>\n<p>Joe will return next week with a few deals that are ready for final analysis. Joe and Steve will aim to select a property to make an offer on. We will learn about using the <a href=\"https:\/\/www.biggerpockets.com\/calc\" target=\"_blank\">BiggerPockets Calculator<\/a> and exactly how to analyze a deal on a remote investment property.<\/p>\n<p>To learn more about Joe\u2019s investing journey, gain access to investor tools and resources, and inform your own remote investment journey, check out the <a href=\"https:\/\/www.mynd.co\/dream-investment-adventure\/?utm_source=online_partnerships&amp;utm_medium=biggerpockets&amp;utm_campaign=dream500&amp;utm_term=bp_blog_post&amp;utm_content=video\" target=\"_blank\" rel=\"noopener noreferrer\">exclusive destination page<\/a> for BiggerPocket fans only! There, you\u2019ll also find a limited-time BiggerPockets <a href=\"https:\/\/www.mynd.co\/dream-investment-adventure#BP-Deal?utm_source=online_partnerships&amp;utm_medium=biggerpockets&amp;utm_campaign=dream501&amp;utm_term=bp_blog_post&amp;utm_content=video\" target=\"_blank\" rel=\"noopener noreferrer\">exclusive offer for property management<\/a>.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/store\/wealth-magazine-one-year?utm_source=blog\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-123232\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2.jpg\" alt=\"Blog ad for Wealth magazine\" width=\"700\" height=\"120\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2-300x51.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>Questions? Comments?\u00a0<\/em><\/p>\n<p><strong>Join the discussion in the comment section below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Imagine receiving a $20,000 check to purchase a rental property, as well as step-by-step guidance from some of the most experienced real estate investors in the industry&#8230; Now watch what happens when it becomes a reality in the Dream Investment Adventure series.<\/p>\n","protected":false},"author":612019,"featured_media":114274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524],"tags":[],"class_list":["post-131351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/131351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/612019"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=131351"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/131351\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/114274"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=131351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=131351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=131351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}