How to inspect house when purchasing out of state

Member since 2022 · 68 posts · 16 votes

Hello! I am currently reading J. Scott's The Book on Estimating Rehab Costs. I plan to purchase my first property within the next year but will most likely be doing so out of state due to financial constraints.

How can I go about inspecting a home while out of state? Do I need to fly there? Doing so doesn't seem very cost effective. Thank you!

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Quote from @David Yee:

How can I go about inspecting a home while out of state? Do I need to fly there? Doing so doesn't seem very cost effective. Thank you!

That's a common method. If you're buying homes that are newer or recently renovated, you may be able to rely on pictures, video, and home inspections to purchase sight unseen. It's not recommended, but it's possible.

I would consider narrowing your search down to several properties, then flying out in person to look at their condition as well as the surrounding community.

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Alex Gunnerson
Real Estate Agent · Kansas City, MO · Member since 2020 · 95 posts · 119 votes
3y
Hi @David Yee,
You will want to have somebody who can be your boots on the ground, who can check out the property and send you videos.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @David Yee:

Hello! I am currently reading J. Scott's The Book on Estimating Rehab Costs. I plan to purchase my first property within the next year but will most likely be doing so out of state due to financial constraints.
How can I go about inspecting a home while out of state? Do I need to fly there? Doing so doesn't seem very cost effective. Thank you!

That's a common method. If you're buying homes that are newer or recently renovated, you may be able to rely on pictures, video, and home inspections to purchase sight unseen. It's not recommended, but it's possible.
I would consider narrowing your search down to several properties, then flying out in person to look at their condition as well as the surrounding community.
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @David Yee:

Hello! I am currently reading J. Scott's The Book on Estimating Rehab Costs. I plan to purchase my first property within the next year but will most likely be doing so out of state due to financial constraints.
How can I go about inspecting a home while out of state? Do I need to fly there? Doing so doesn't seem very cost effective. Thank you!

You do not, also stop reading books. All you need to do is connect with someone doing deals in the area and allow them to handle for you. It seems you want to get the est, then hire a GC to run the job, BAD IDEA. 90% of the time it will not end well. You must have a team in place that has a mutual benefit otherwise things will go south for you very fast. I know dozens of investors that have never seen the house or let alone been to the city. Again, it's all about having a team in place

Good Luck
1 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Hire an inspector, it is their job to give you a report of all defects in the home. These things cost like $800
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Yes, hire a local Home Inspector...that's what they do. They can also recommend a good GC to do repairs (hint - don't hire a Home Inspector who does their own repair work :-)
1 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Alex Gunnerson:

Hi @David Yee,
You will want to have somebody who can be your boots on the ground, who can check out the property and send you videos.

Thank you
0 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Nathan Gesner:

Quote from @David Yee:

Hello! I am currently reading J. Scott's The Book on Estimating Rehab Costs. I plan to purchase my first property within the next year but will most likely be doing so out of state due to financial constraints.
How can I go about inspecting a home while out of state? Do I need to fly there? Doing so doesn't seem very cost effective. Thank you!

That's a common method. If you're buying homes that are newer or recently renovated, you may be able to rely on pictures, video, and home inspections to purchase sight unseen. It's not recommended, but it's possible.
I would consider narrowing your search down to several properties, then flying out in person to look at their condition as well as the surrounding community.

This sounds like a solid approach. Thank you @Nathan Gesner
1 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Bob S.:

Quote from @David Yee:

Hello! I am currently reading J. Scott's The Book on Estimating Rehab Costs. I plan to purchase my first property within the next year but will most likely be doing so out of state due to financial constraints.
How can I go about inspecting a home while out of state? Do I need to fly there? Doing so doesn't seem very cost effective. Thank you!

You do not, also stop reading books. All you need to do is connect with someone doing deals in the area and allow them to handle for you. It seems you want to get the est, then hire a GC to run the job, BAD IDEA. 90% of the time it will not end well. You must have a team in place that has a mutual benefit otherwise things will go south for you very fast. I know dozens of investors that have never seen the house or let alone been to the city. Again, it's all about having a team in place

Good Luck

Hello @Bob S.. Are you suggesting that I partner with another investor and pool our money and resources? Or instead form a team made up of: Real Estate Agent, GC, PM and lender and ask them to estimate the cost of rehab before I place an offer.
0 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Eliott Elias:

Hire an inspector, it is their job to give you a report of all defects in the home. These things cost like $800

Thank you @Eliott Elias. Does this approach apply to estimating the cost of the rehab before putting in an offer? Are inspectors willing to walk through a prospective property and tell me the estimated cost of rehab before I place an offer?
0 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Bruce Woodruff:

Yes, hire a local Home Inspector...that's what they do. They can also recommend a good GC to do repairs (hint - don't hire a Home Inspector who does their own repair work :-)

That's a great tip @Bruce Woodruff! Can I hire a local Home Inspector to walkthrough the property(ies) that I am considering purchasing before I place an offer so I have an idea of the estimated cost of rehab?
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @David Yee:

Quote from @Bob S.:

Quote from @David Yee:

Hello! I am currently reading J. Scott's The Book on Estimating Rehab Costs. I plan to purchase my first property within the next year but will most likely be doing so out of state due to financial constraints.
How can I go about inspecting a home while out of state? Do I need to fly there? Doing so doesn't seem very cost effective. Thank you!

You do not, also stop reading books. All you need to do is connect with someone doing deals in the area and allow them to handle for you. It seems you want to get the est, then hire a GC to run the job, BAD IDEA. 90% of the time it will not end well. You must have a team in place that has a mutual benefit otherwise things will go south for you very fast. I know dozens of investors that have never seen the house or let alone been to the city. Again, it's all about having a team in place

Good Luck

Hello @Bob S.. Are you suggesting that I partner with another investor and pool our money and resources? Or instead form a team made up of: Real Estate Agent, GC, PM and lender and ask them to estimate the cost of rehab before I place an offer.

No , just connect with a team that provides properties. You do not need a realtor. Your team will handle all for you. 100% hands off investing,
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @David Yee:

Quote from @Bruce Woodruff:

Yes, hire a local Home Inspector...that's what they do. They can also recommend a good GC to do repairs (hint - don't hire a Home Inspector who does their own repair work :-)

That's a great tip @Bruce Woodruff! Can I hire a local Home Inspector to walkthrough the property(ies) that I am considering purchasing before I place an offer so I have an idea of the estimated cost of rehab?
A licensed Home Inspector will not just do walk-throughs due to liability, and plus they do not know houses the way a GC does. So get a GC to do your quick walk throughs and throw a budget number at you, then if that works, hire a Home Inspector to do his job and inspect the detailed stuff. It's good to have 2 different sets of eyes on it anyway, because they look at different things different ways....
1 Reply
Steve Bebek
Real Estate Agent · Central Oregon Coast · Member since 2019 · 64 posts · 12 votes
3y
Quote from @David Yee:

Quote from @Bruce Woodruff:

Yes, hire a local Home Inspector...that's what they do. They can also recommend a good GC to do repairs (hint - don't hire a Home Inspector who does their own repair work :-)

That's a great tip @Bruce Woodruff! Can I hire a local Home Inspector to walkthrough the property(ies) that I am considering purchasing before I place an offer so I have an idea of the estimated cost of rehab?

Not sure a seller would allow that before a accepted off.
1 Reply
Steve Bebek
Real Estate Agent · Central Oregon Coast · Member since 2019 · 64 posts · 12 votes
3y
Quote from @Steve Bebek:

Quote from @David Yee:

Quote from @Bruce Woodruff:

Yes, hire a local Home Inspector...that's what they do. They can also recommend a good GC to do repairs (hint - don't hire a Home Inspector who does their own repair work :-)

That's a great tip @Bruce Woodruff! Can I hire a local Home Inspector to walkthrough the property(ies) that I am considering purchasing before I place an offer so I have an idea of the estimated cost of rehab?

Not sure a seller would allow that before a accepted offer.

0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @Steve Bebek:

Quote from @David Yee:

Quote from @Bruce Woodruff:

Yes, hire a local Home Inspector...that's what they do. They can also recommend a good GC to do repairs (hint - don't hire a Home Inspector who does their own repair work :-)

That's a great tip @Bruce Woodruff! Can I hire a local Home Inspector to walkthrough the property(ies) that I am considering purchasing before I place an offer so I have an idea of the estimated cost of rehab?

Not sure a seller would allow that before a accepted off.

No, I don't think they will allow a Home Inspector either, that's why I said to get a GC to walk the property before he placed an offer. That should get him a decent budget number.
1 Reply
Mark Cruse
Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
3y
There are tons of perspectives here but mine will differ. My opinion is you dont. You say you will invest out of state due to financial constraints? I understand that in terms of getting more affordable deals but it also restricts your ability to travel to your own investment? If that is the case I would save up and be in a better position until I can. This business is very difficult. Its fine to read books or get ideas online/youtube but there is emphatically nothing that can substitute putting your boots on the ground and understanding how it all works yourself. Most people fail in this business for a reason and believing being a newbie and running projects out of state (with no experience) is a good mix you may get a rude awakening. For you to adequately be able to inspect or make sound judgement on renovations you need to have tons of experience directly doing it. If you leave that up to others and have no idea yourself, you are at the mercy of others who could be crooked, feckless or incompetent. In this game you have to be all in and know what you are doing. If you chose the route of getting others to do it I have no constructive advice. I advise against it. In my opinion, assemble a team on the ground of reliable and tested professionals who can assess those things (i.e GCs, inspectors, appraisers, experienced flippers) and put eyes on everything yourself. Solicit the best advice you can get and utilize your book knowledge to make the most educated assumption you can. That is the best mix for getting the best results. If you rinse and repeat, doing this over and over, eventually you will see you have the knowledge yourself. Then over time if you are more experienced and understand how to construct a viable boots on the ground team you have faith in, then you can explore out of town stuff like you want. For me, I'm very experienced and still there is no way I would ever invest in stuff I've never seen, leaving it to others. I do delegate other responsibilities to my teams but over all I run them because I have the ability to know what goes where. Just my advice. Best of luck!
2 Reply
Jovelyn Punzal
Rental Property Investor · San Diego, CA · Member since 2020 · 24 posts · 12 votes
3y
Hi David,
If you haven't read Investing Out Of State by David Greene, I've heard that was gold for any OOS Investing. Connecting with people on here that are in the area you want to invest in is key in itself - Reach out to investors, lenders, agents, home inspectors, etc in that area. Once you build that trust/team, they should be more than happy to help you from there. I am currently in San Diego and am starting off but have definitely thought about OOS Investing because of the necessary capital needed out here unless I partner with someone that has all that capital while I'm the one putting more work into it/boots on the ground! Hope this helps, good luck!
1 Reply
Mark Frattini
Real Estate Agent · San Diego, CA · Member since 2014 · 338 posts · 176 votes
3y
@David Yee
Flying out to see them is not completely necessary and I have bought several properties without seeing them in person. What I would recommend is that you leverage your local team. You should have a trusting relationship with your realtor who ideally has investment properties in the same area and they should be steering you clear of a poor purchasing decision based on area and condition. Have them do a Facetime or video walk-through at a minimum. Don't skip the professional inspection. The inspector doesn't care whether you purchase the home or not and will give you their honest report. Finally, develop a relationship with a property manager who can give their opinion on the homes you are considering.

Depending on the price point and size of the investment since this is your first I would still consider flying there.

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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
3y
Fly out and see the property once you narrow it down. There's nothing like getting an idea of how it situates. What if it's a great house, but it's a block behind the railway or at a stoplight intersection so heavy car traffic getting in/out of the house. Or other cosmetic stuff you notice that just rub you the wrong. I'd definitely get a wide, aggregate set of markets. Narrow it down to the few markets that offer plentiful of options and pay them a visit. Don't go to visit just one house, but if you find a market say Austin and you saw 8-10 investable houses. Book a trip. It's going offer a lot of peace of mind.
1 Reply
Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
3y
@David Yee do you know any other areas? I invest out of state but only in areas I know where I have people I trust on the ground.
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Nicholas Coulter
Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
3y
@David Yee I would look to start to build out your team. The man thing is to get a good agent in your area and also get them to introduce you too all the other parties you need to meet!
1 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Alex Gunnerson:

Hi @David Yee,
You will want to have somebody who can be your boots on the ground, who can check out the property and send you videos.

Thank you @Alex Gunnerson
0 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Bruce Woodruff:

Quote from @Steve Bebek:

Quote from @David Yee:

Quote from @Bruce Woodruff:

Yes, hire a local Home Inspector...that's what they do. They can also recommend a good GC to do repairs (hint - don't hire a Home Inspector who does their own repair work :-)

That's a great tip @Bruce Woodruff! Can I hire a local Home Inspector to walkthrough the property(ies) that I am considering purchasing before I place an offer so I have an idea of the estimated cost of rehab?

Not sure a seller would allow that before a accepted off.

No, I don't think they will allow a Home Inspector either, that's why I said to get a GC to walk the property before he placed an offer. That should get him a decent budget number.

This is very helpful. Thank you all
0 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Nicholas Coulter:

@David Yee I would look to start to build out your team. The man thing is to get a good agent in your area and also get them to introduce you too all the other parties you need to meet!

Thank you @Nicholas Coulter! I will start forming the Core Four
0 Reply
David Yee
OP
Member since 2022 · 68 posts · 16 votes
3y
Quote from @Jordan Moorhead:

@David Yee do you know any other areas? I invest out of state but only in areas I know where I have people I trust on the ground.

Hello @Jordan Moorhead. I don't know any other areas very well. I've spent my entire life in San Diego
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