First Rental Property - Out of State - Michigan

[Michael Watford]

Hello wonderful people of BP!

I am looking to get into the RP game and originally planned to purchase something in the Tampa, FL area later this year, however an opportunity has presented itself for an out of state investment.

I am hoping to get some advice from anyone that has done this in the past.

We've been offered a property in Warren, MI. The deal comes in at 117k but comes with a renter paying $1400/month.

It has a property manager already at 7% and from the looks of it a PM is required in MI for out of state investors.

I've been unable to find any type of deal around Tampa with these margins on property cost vs rent.

We plan to: Fly up and see the property, interview the PM, get an assessment, and have the tenant fill out an estoppel agreement.

I plan to use a CPA for tax purposes. I also have a lawyer on retainer already to review all contracts.

I would appreciate any input/advice you could offer.

[Kristen L Garner]

Hi Michael, I live in CA and invest out of state in IN. I use property managers and have never regretted that decision. I'd be happy to chat and share my OOS experiences, pros, cons, etc.  My biggest advice would be to make sure you know and understand the specific neighborhood and market the property is in.  You can get great feedback from your agent, other investors in that area, or a physical visit (which it sounds like you are doing). Best of luck!