Investing local or long distance?

Question

Good evening all!

I started my real estate investing journey only investing locally, let’s say within 30 mins.

Lately I’ve been considering purchasing in another state (southern). Why? Because I’m in the North East and not finding something with much add on potential.

Obviously a bit nervous about it, won’t be able to drive down the road and check up on the PM.

What’s everyone’s thoughts on out of state investing?

Do you have any advice?

Maybe even a good place to start looking?

Thanks in advance!

Brandon Sturgill · Answer

@Matthew Couto The location, analysis, and acquisition of real estate is essentially the same everywhere...a real estate transaction is the same here as it is on the moon...so, that's the easy part. If you're buying distressed assets or assets that are under-performing or need stabilized, you'll fail quickly without a A-team in place. Transitioning from one property owner to the next and handling all the moving parts (especially with larger MF) can get out of control quickly if you do not have proven systems in place and capable people operating those systems...

Investing in real estate is just controlled chaos...if your team can handle it you can buy property anywhere in the world and sleep soundly at night.

Best of luck

Matthew Couto · Answer

@Greg Dickerson

That was my thought, from what I can see, there seems to be more larger deals in the south. Not saying there better than the north, but id like to make my next one a bigger one! Thanks for your input!

Greg Dickerson · Answer

If you’re going to invest out of state I would go big to make it worth your while. You will spend the same amount of time energy and effort on a single-family home as 100 unit building or a commercial property.