Advice on inspections for out-of-state investing.
Member since 2025 · 2 posts · 8 votes
Advice on inspections for out-of-state investing.
Most Popular Reply
Ask yourself what measures you would go to be confident in your decision on a $300k + asset?
I'll save you from the thought of it. Do yourself the trouble of checking out the house in person and getting an inspection, if you like it enough to offer on it.
If it's "too much trouble" to fly there and check it out. This entire process will be "too much trouble". Go buy equities or something, you won't survive.
16 Replies
- Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes1y
You should be able to get an inspection unless for some reason there isn't access to the property. Use a state-sponsored contract and work with a realtor who works with investors.
Also - for your first deal, just keep in mind that building relationships with boots on the ground will help ensure you're successful, because managing a flip on your first one is difficult, the complexity added with being remote makes it even tougher -- but totally get the location issue. There are some markets that just make the barrier to entry too high.
Maybe even fly or drive to the property and lay eyes on it with your contractor as well before you close.
Again - a local investor-friendly realtor should be able to help you get it done.
- Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes1y
@Christiana Scheevel if you are buying turnkey or light rehabs, you should always have an inspection on a purchase, unless, you already have a good understanding of condition and you are planning a full renovation. If the company you are working with doesn't allow inspections, that should be a red flag!
You will either get total peace of mind about your purchase if nothing is wrong/needs repaired, or you will have an opportunity to negotiate some repairs or price if there are items identified by the inspector.
Totally worth the $300-$500 price tag. - Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes1y
I would not buy a house without an inspection contingency. Too much can be missed, especially as an OOS investor and with i being your first one. I would do a full inspection, have your agent take videos walking through and get multiple GC bids(if that applies). Outside of that verify rents and the ARV if it's a rehab project.
Good question, Christiana! Pictures and an inspection are a must, but I’d also recommend reviewing the last couple months of utility bills, rent rolls (if it’s tenant-occupied), and making sure you get a solid scope of any recent repairs or upgrades. Title search and checking for liens are another layer of protection.
For properties sold as-is, you can still ask for an inspection, it just means the seller likely won’t agree to fix anything. Some investors still do it so they know what they’re walking into, others avoid them altogether until they have more experience.
Just curious, are you leaning more toward turnkey for peace of mind at first, or are you open to light rehabs if the numbers make sense? Happy to keep the conversation going!
- 1yCliff BennerBusiness MemberAccountant · Denver, CO · Member since 2020 · 394 posts · 183 votes
Quote from @Christiana Scheevel:
I am a rookie just getting into real estate investing. I have not done any deals yet and would love some answers/advice. I am looking to invest out of state because where I live is too expensive for me to start. Looking to invest in turnkey rental properties or simple cosmetic rehabs for rentals. What things to I need to do or look for before closing to ensure I am not buying an awful property or getting myself in trouble. I assume pictures/videos of the property and an inspection, but is there anything else? Also, what about homes being sold as-is with no inspection? Can I ask for an inspection anyways or should I just avoid those altogether?
Thank you all so much!
Hi Christiana!
Congrats on starting your journey and deciding on a path to take, those are both huge first steps.
I can tell you from experience, with OOS investing, your team is everything. You don't want "yes men" you want someone who will push you a bit on things you say and be ok with you questioning them.
You will need to be confrontational and be willing to tell them you don't understand where they are coming up with their results and they need to prove it to you. You also need to do the homework on learning how to comp prices and rent to be able to verify their opinions. Be ready to fire them, I fired my 1st Realtor and PM and had to get new ones who are much better.
USE BP for references on Realtor or PMs, or find one directly on here who is active. That shows that they are more aware of how to work with investors and a bad review on BP doesn't look good at all, because clients and customers don't like people messing with their money and income where as someone buying a personal house might skip the reviews and just use a different person next time with no thought.
Don't fall in love with the idea of finally getting a place, be able to walk away when your gut tells you to.
ALWAYS GET AN INSPECTION! Even if your offer doesn't have that contingency, this will help you to see what you need to do before you rent it rather than after.
Depending on if your market goes fast or not, take that trip there to see it in person AND to see how your realtor walks a property. I would have avoided my 1st property if I did and that $800 trip would have saved me $40k. But make it worth it and ask your realtor to take you to every property you can so you can see them and the area and if you want to put in offer in. Also you may be able to see why one street is worth $100k more than one 6 blocks away.
Check out episode 610 of the BP Podcast to hear the exact advice i got after messing up.
But feel free to reach out and we can talk more details too!
Benner Stride52 Reviews - 1yArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 969 votes
Christiana, great question — inspections are honestly one of the most important things you can do as an out-of-state investor. Even if a property is listed “as-is,” you can almost always still order one, it just means the seller isn’t going to make repairs. I’d say always get an inspection, because it’ll catch the big-ticket items that can hurt you the most like roof, HVAC, foundation, plumbing, and electrical. Pictures and videos are helpful, but they never tell the full story, so having someone local you trust — whether that’s an investor-friendly agent, a property manager, or even another investor — walk the property and give you honest feedback is huge. Beyond that, make sure you’re running accurate rent comps to confirm what it can realistically rent for, and always do a title search so you’re not inheriting liens or unpaid taxes. Out-of-state investing can work really well if you have the right systems and the right local team — the inspection is just one piece of making sure you’re setting yourself up for success.
Hey @Christiana Scheevel, welcome to BP!
For out-of-state real estate investing, you should always hire a professional home inspector to perform a thorough inspection of the property's condition. Find a local inspector with a good reputation and experience inspecting investment properties to identify issues with wiring, plumbing, structural components, and more. A qualified home inspector is essential to uncover hidden defects and provide a professional report.
It's also recommended to build a network of trusted local professionals, including inspectors, contractors, and a property manager, who can provide on-the-ground support and handle maintenance needs remotely.100% get on a plane and be there personally for the inspection. Not only will you have less risk of making a bad investment, but you will also learn a ton about the product that you'll be selling. Find an inspector who will let you shadow them if you can, chat them up, build rapport with them and offer to pay them a bit extra for their extra time spent with you so that you aren't just being annoying, and ask a lot of questions.
Ask yourself what measures you would go to be confident in your decision on a $300k + asset?
I'll save you from the thought of it. Do yourself the trouble of checking out the house in person and getting an inspection, if you like it enough to offer on it.
If it's "too much trouble" to fly there and check it out. This entire process will be "too much trouble". Go buy equities or something, you won't survive.
- Member since 2024 · 49 posts · 23 votes1y
I fully agree that you should get an inspection. An inspection could allow you to double check your numbers and allow you an "out" or be used as a negotiating tactic. Also, It will help you assess the major items and provide insight on your maintenance in the next 5, even 10 years if you plan to fix and hold. As an inspector/ dabbling investor myself, I offers alternative services for investors. "Walk and talk" and "4-point" (Roof, electrical, plumbing, hvac) inspections have been fairly common. They are discounted and usually don't take as long.
What areas are you looking in? - Member since 2025 · 2 posts · 8 votes1y
Thanks everyone! This is very helpful advice. I have been looking in the St. Louis area mostly. I know many people there which makes me feel more comfortable investing out of state.
- 1yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
How much do you know about Property Classes?
Recommend you spend some time learning about them, so you don’t mistakenly buy a property that will NEVER meet your expectations!
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to,, “Maintain to the Neighborhood”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
Logical Property Management4.9464 Reviews - 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Christiana Scheevel:
I am a rookie just getting into real estate investing. I have not done any deals yet and would love some answers/advice. I am looking to invest out of state because where I live is too expensive for me to start. Looking to invest in turnkey rental properties or simple cosmetic rehabs for rentals. What things to I need to do or look for before closing to ensure I am not buying an awful property or getting myself in trouble. I assume pictures/videos of the property and an inspection, but is there anything else? Also, what about homes being sold as-is with no inspection? Can I ask for an inspection anyways or should I just avoid those altogether?
Thank you all so much!
Excited to see you here on BiggerPockets! Awesome to see you taking the first steps—getting educated and asking the right questions puts you ahead of most new investors. For out-of-state investing, you’re on the right track: always get pictures, videos, and a full inspection if at all possible. On top of that, I’d add making sure you get a solid rent roll or rental history if it’s tenant occupied, run comps on both rent and sales, and double-check local taxes and insurance since those can really affect your cash flow. A good property manager can also give you a reality check on rents and the neighborhood, which is super helpful if you can’t see it in person. As-is properties are super common, but you can almost always still ask for an inspection—you just might not be able to ask the seller for repairs or credits afterward. Personally, I’d avoid buying anything without an inspection unless you’re very experienced or it’s such a good deal you can budget for surprises. Since you’re looking turnkey or light rehab, an inspection is even more important so you don’t end up with hidden costs. For markets, Columbus, Ohio has been a great spot for turnkey and light rehab rentals. I moved here from Portland back in 2020 and now own 10+ rentals, and it’s one of the few places where you can still find $120–180K houses that hit the 1% rule, cash flow, and are backed by strong fundamentals—population growth, job growth, and big developments from Intel, Amazon, Google, Facebook, Honda, Microsoft, LG, etc. That mix of affordability, stability, and appreciation potential is why a lot of out-of-state investors choose it. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9122 Reviews - 1yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Christiana Scheevel:
I am a rookie just getting into real estate investing. I have not done any deals yet and would love some answers/advice. I am looking to invest out of state because where I live is too expensive for me to start. Looking to invest in turnkey rental properties or simple cosmetic rehabs for rentals. What things to I need to do or look for before closing to ensure I am not buying an awful property or getting myself in trouble. I assume pictures/videos of the property and an inspection, but is there anything else? Also, what about homes being sold as-is with no inspection? Can I ask for an inspection anyways or should I just avoid those altogether?
Thank you all so much!
You’re thinking in the right direction by prioritizing inspections and due diligence. Beyond photos and video, make sure you get a full inspection, confirm property taxes and utility bills, and verify actual rent history if it’s tenant occupied. Title work is critical too since liens or unpaid bills can carry over. As for as-is properties, you can usually still request an inspection, but the seller won’t make repairs, so it’s just for your knowledge. If they won’t allow access at all, that’s usually a red flag for a first deal. - 1ySam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes
Quote from @Christiana Scheevel:
I am a rookie just getting into real estate investing. I have not done any deals yet and would love some answers/advice. I am looking to invest out of state because where I live is too expensive for me to start. Looking to invest in turnkey rental properties or simple cosmetic rehabs for rentals. What things to I need to do or look for before closing to ensure I am not buying an awful property or getting myself in trouble. I assume pictures/videos of the property and an inspection, but is there anything else? Also, what about homes being sold as-is with no inspection? Can I ask for an inspection anyways or should I just avoid those altogether?
Thank you all so much!
I would 100% recommend inspections OOS. That, or at least be here in person to view it before throwing an offer no inspections. Or a GC
Sam McCormack Realtor I think @Jimmy Lieu gave a lot of great information regarding what you need, but some things I'd add are to use google maps to check out the street and neighborhood. You can also ask the agent to facetime or send a video over.
I'd say to make sure you know the ages of the mechanicals (Roof, HVAC, water heater) as well since they can become deferred maintenance if they are old. Generally homes that are 1970s and older should have their electrical updated if they haven't been already.
Regarding the inspection report it can be intimidating for a beginner, so I'd recommend walking through it with your investor friendly agent and putting it into ChatGPT to get more information and approximate costs. The general contractor should be able to provide some insight as well. You should learn a little bit about construction as well, so you know what needs to be replaced and what specs to use. ChatGPT helps a lot if need you are trying to learn.
One last thing I'd mention is to make sure you interview the property manager and general contractor to make sure they are good fit. You should do some research on how they operate and their experience.
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