Advice for a new long term rental investor

[Desiree Board]

I'm new to investing and wanted to get some advice/perspective on 2 things...

1. For someone new to real estate investing that wants to do long term rentals, do you recommend starting off in an area close to them/an area they're familiar with or someplace that will give them the best return even if it's out of state. 

2. Since this would be my first long term rental property do you recommend starting with a property manager from the beginning or managing the property myself.

I understand that there are pros and cons to all of these scenarios, I'm just looking for various insights. Thank you!

[Mike Paolucci]

Quote from @Desiree Board:

I'm new to investing and wanted to get some advice/perspective on 2 things...

1. For someone new to real estate investing that wants to do long term rentals, do you recommend starting off in an area close to them/an area they're familiar with or someplace that will give them the best return even if it's out of state. 

2. Since this would be my first long term rental property do you recommend starting with a property manager from the beginning or managing the property myself.

I understand that there are pros and cons to all of these scenarios, I'm just looking for various insights. Thank you!

Welcome to BP @Desiree Board! 

1. If you're able to invest locally, then I'd recommend doing that. Not everyone is able to do that these days which is why lots of investors are looking into other markets. I'd recommend house-hacking a duplex or triplex if possible to help limit your living expenses. It'll also allow you to manage the property and learn what it's like to own property and really get to know your local market.

2. If investing locally, then managing it yourself is the best way to learn and see if owning property is right for you. Managing a smaller portfolio shouldn't be too difficult as long as you're able to find good contractors to help you do what's needed. It'll also help you save some on management fees and other expenses. As your portfolio grows, then you can start looking into a property manager. 

If you're investing out of state, then I'd recommend using a property manager. They'll have all the connections to contractors and vendors you'll need to get the work needed done. It's a different animal all together to try and manage an out of state investment property. 

Something else to consider - I'd recommend starting with more of a turnkey investment property for your first one if possible unless you have experience in working on houses.