Long distance investing as my first deal

New to Real Estate · Maple Valley Washington · Member since 2020 · 18 posts · 18 votes

Hello!

I have been wanting too invest in real-estate for a while now, I live in Washington and its to expensive for me to invest here yet. I used to live in Arizona so I know some of the area. I have $25,000 to put down and another $25,000 for repairs. I would fly down to do most of the repairs myself. Do you think it is a good idea to invest long distance as my first deal?

Thanks!

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Griffin Pratt

Wholesaler · St. Augustine, FL · Member since 2022 · 36 posts · 24 votes

Hey Connor,

As you already know, some markets work better than others for different investment strategies. When it comes to long-distance investing, prior to identifying the MARKET you want to invest in, should be IDing what TYPE of investment property you're searching for (ie. LTR vs. STR, fix n' flip, BRRRR, single-family vs. multi-family, price range, etc.). Once you've answered that question, its much easier to choose a market that better supports that investment type.

Assuming you've already ID'd your investment strategy & market, the next step would be to connect with an agent in said market to help find what you're looking for. As an agent myself, I can say a buyer that does their homework and brings a plan to the table is a much more motivating client to work with. In addition to helping you find and purchase your investment prop, a good agent will often have recommendations for local contractors, property managers, etc to help you with the rehab and managment of your property, should you need it. I'd recommend using the "Find an agent tool" on bigger pockets or reaching out via the forums to find an investment friendly agent in your desired market.

Hope that helps and if you have any other questions, my door is always open!

Griffin

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
@Connor Campbell
can you house hack locally instead?
lower down payment options for owner occupied
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Griffin Pratt
Wholesaler · St. Augustine, FL · Member since 2022 · 36 posts · 24 votes
3y
Hey Connor,
As you already know, some markets work better than others for different investment strategies. When it comes to long-distance investing, prior to identifying the MARKET you want to invest in, should be IDing what TYPE of investment property you're searching for (ie. LTR vs. STR, fix n' flip, BRRRR, single-family vs. multi-family, price range, etc.). Once you've answered that question, its much easier to choose a market that better supports that investment type.
Assuming you've already ID'd your investment strategy & market, the next step would be to connect with an agent in said market to help find what you're looking for. As an agent myself, I can say a buyer that does their homework and brings a plan to the table is a much more motivating client to work with. In addition to helping you find and purchase your investment prop, a good agent will often have recommendations for local contractors, property managers, etc to help you with the rehab and managment of your property, should you need it. I'd recommend using the "Find an agent tool" on bigger pockets or reaching out via the forums to find an investment friendly agent in your desired market.
Hope that helps and if you have any other questions, my door is always open!
Griffin
1 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Connor Campbell:

Hello!

I have been wanting too invest in real-estate for a while now, I live in Washington and its to expensive for me to invest here yet. I used to live in Arizona so I know some of the area. I have $25,000 to put down and another $25,000 for repairs. I would fly down to do most of the repairs myself. Do you think it is a good idea to invest long distance as my first deal?

Thanks!

That is great you are ready to jump in. You should consider investing OOS here in Columbus, Cleveland, or Cincinnati. The price-to-rent ratio makes for great investments. Not to mention our appreciation has been 8% higher than the US national average, because of the high demand for affordable housing. I help clients every day from out of state find killer deals here.
If you have not read this article it is great to read and get in place if you are going to invest OOS. https://www.biggerpockets.com/...
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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
3y
Do you own your primary home yet?
If not, I'd start there.
If you do, is there any equity in it to leverage with a HELOC? With $50k you're going to be limited in what you can do but a bit more will open up more options.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Connor Campbell:

You certainly can, but I recommend you invest in a property that cashflows even with a property manager in place. I don't recommend managing property from a distance for beginning investors.

The DIY Landlord Book4.7248 Reviews
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Shiela R.
Investor · Boulder, CO · Member since 2017 · 304 posts · 347 votes
3y
@Connor Campbell are you able to drive with all your tools? I'd highly discourage investing more than 1 hour drive from your home when just starting out. When I have a project, I make my presence known almost daily to my very good, very professional contractors. No body cares more about your money (or investment) than you;) Do you have a GC or PM to handle day to day stuff? Also, something will go wrong or surprise you as you go through the remodel. Almost never fails. So consider that too.
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