Investing in a far away market

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Investing in a far away market

Max Nathan
Miami, FL · Member since 2024 · 6 posts · 6 votes

I'm in Miami and want to invest in a cheaper market where my money will go a longer way and so I can cash flow better. If I want to invest in Alabama, do you think this will pose a problem. I would try my best to fly there once a month during construction and do you think i can trust the gc to handle everything. Please let me know 

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Derrick Lewis
Investor · Syracuse, NY · Member since 2022 · 16 posts · 9 votes
1y
Quote from @Nicholas L.:

@Max Nathan there is no cash flow anywhere right now on small properties - prices and rates are too high.  house hacking will build equity which is where real wealth is.


Cash flowing well on every SFH and small multi family deal I've done in Upstate NY, even with my first having an interest rate above 10% due to what my credit was. I wouldn't be cash flowing paying a property manager, maintenance, etc. to be able to operate out of state though.

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Max Nathan

    is it possible?  sure.  and i am encouraged to hear that you'd go there once a month.  that's important - a lot of folks want to pick a property on Zillow and buy it just to "do a deal."  but it will still be challenging.  read these threads and see what you think.

    https://www.biggerpockets.com/forums/12/topics/1215726-break...

    https://www.biggerpockets.com/forums/48/topics/1159104-overl...

    https://www.biggerpockets.com/forums/963/topics/1195280-expe...

    https://www.biggerpockets.com/forums/48/topics/1160450-run-i...

    https://www.biggerpockets.com/forums/48/topics/1137397-balti...

    and before buying something in Alabama why not house hack first in Miami?

    0Reply
  • Max Nathan
    OP
    Miami, FL · Member since 2024 · 6 posts · 6 votes
    1y

    looking for a cash flowing rental that I can buy and hold is why im not looking in miami. Thoughts?

    2Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Max Nathan there is no cash flow anywhere right now on small properties - prices and rates are too high.  house hacking will build equity which is where real wealth is.

    0Reply
  • Drago Stanimirovic
    New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 441 votes
    1y

    Max, investing in Alabama from Miami is a solid strategy for better cash flow, but remote management has challenges. Trusting a GC can work if you thoroughly vet them, use a detailed contract with clear milestones, and establish systems for accountability. Flying in monthly helps, but having a local contact (realtor, manager, or trusted partner) is key for regular updates.

    Use tools like progress photos, video calls, or project management apps to stay connected, and schedule visits at critical stages of the project. With the right systems and partners, remote investing can be highly successful. 

    Let me know if you need help with financing or structuring the deal.

    Best,
    Drago

    0Reply
  • Derrick Lewis
    Investor · Syracuse, NY · Member since 2022 · 16 posts · 9 votes
    1y
    Quote from @Nicholas L.:

    @Max Nathan there is no cash flow anywhere right now on small properties - prices and rates are too high.  house hacking will build equity which is where real wealth is.


    Cash flowing well on every SFH and small multi family deal I've done in Upstate NY, even with my first having an interest rate above 10% due to what my credit was. I wouldn't be cash flowing paying a property manager, maintenance, etc. to be able to operate out of state though.

    2Reply
  • Shaheen AhmedPro Member
    Contractor · Los Angeles · Member since 2023 · 80 posts · 55 votes
    1y
    Quote from @Max Nathan:

    looking for a cash flowing rental that I can buy and hold is why im not looking in miami. Thoughts?

    I like the West Mobile area, its class A area, you can definitely find deals there, 3 bedroom with 2 bathroom for around 220k or so, you may have to wait a couple of years for positive cash flow but properties there increasing in values better than others. Good luck 
    1Reply
  • Bryan Stengel
    Real Estate Agent · Long Island · Member since 2018 · 88 posts · 38 votes
    1y

    Hi Max, it all depends on how much liquid cash you have of course.  I would suggest research areas in Alabama that you'd like to invest in.  Build your systems first before you decide to invest though.  I would connect with a property manager that is trusted and has experience in the area.  Fortunately, they should and usually do have local contractors in the area that they turn to for maintenance.  They may cost approximately 10% of your rental income per month, but may be worth it when you are residing out of state.  I invest out of state and don't see any other way of managing my properties without one.  It could be stressful if there is a plumbing or heating issue and you're several hours away.  I'd also suggest a house hack to depending on where you reside as well.  Depending on your current living situation, you could do both.  As most investors seek to do in real estate, we want to generate positive passive income through multiple avenues such as equity, cash flow, and even tax advantages.  

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Derrick Lewis

    yep i think we would agree here.  if you can be hands-on: no PM, a lot of DIY, etc. you can absolutely cash flow.  if you buy a random property 3000 miles away and have to hire out everything and overpay for everything you won't.

    1Reply
  • Andre Jones
    Member since 2020 · 23 posts · 5 votes
    1y

    What part of AL are you thinking of investing in?

    0Reply
  • Max Nathan
    OP
    Miami, FL · Member since 2024 · 6 posts · 6 votes
    1y

    birmingham

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Max Nathan

    Investing in Alabama from Miami is absolutely doable with the right preparation. Start by researching the market to choose the right city and property type while understanding the local economy. Build a reliable team on the ground, plan occasional visits, and trust your general contractor to handle the day-to-day. Focus on cash flow and exit strategies, and consider starting with a smaller project to gain experience and minimize risk.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
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    0Reply
  • Greg ParkerBusiness Member
    Realtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 663 posts · 536 votes
    1y

    The City of Montgomery is the Capital of Alabama with a robust economic environment that has produced multiple awards of excellence at the Chamber of Commerce level. As consecutive Mac Conway Award Winners for Excellence recipients, Montgomery is well positioned through their "Imagine a Greater Montgomery" initiative to re-shape the city vision. The Economic Development there is focused on building competitive regional talent, diversifying the regional economy, transforming Montgomery's image and building diverse community capacity.
    Major economic drivers to the area include Hyundai manufacturing, Maxwell & Gunter Air Force Base, major Amazon distribution, Alabama State Capitol, Alfa Insurance, Kinpak, H2 Pharma, Dollar General transport/logistics, Dow Chemical, and Conner Industries to name a few. 
    Overall, the City of Montgomery is highly focused on attracting large companies to its' vastly diverse and well trained workforce.

    [email protected]
    MGM Property Pros LLC
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