I'm new to real estate investing and I've been doing a fair amount of research related to investing in multifamily rental properties.
Unfortunately around my area the properties don't meet my price range or cash flow calculations. I've found quite a few areas out of state though that seem to pass the initial review.
Buying out of state obviously has some drawbacks, mainly not being close and more importantly finding a "team" to help you.
For anyone who has made this work, how do you go about the process of making sure a property is worthy to buy when it's far away?
Mainly I'm curious if you have to be present for the entire process, or you can hire people remotely to help you even before you see the property. I'm thinking things such as an inspection on the property and maybe a checklists of things that need to be repaired or updated.
Can a property management company to help you build a team even before you buy?
Thanks for your time and consideration!
Hey Bryce! I don't have MFRs but I do have all out-of-state SFRs and it's the same idea in terms of how to do it (assuming you are buying residential MFRs and not commercial).
A lot of it just depends on how you want to buy. Like whether you want to do more BRRR type of strategies or turnkeys or whatever. The BRRR type of method leaves you more on your own and you'll need to put more time and effort (and skill) in, and turnkey only requires minimal time, effort, and expertise (just enough to do due proper due diligence), but the prices will be higher (but still yielding cash flow). With both of these options, I would answer your questions about whether you need to be there and such completely differently.
If you want to say more about your interests, budget, desires, etc. I can make some market recommendations or whatever else might be of help.
I'm very interested in going the BRRR route and at the moment I'm primarily targeting MFRs that are in the 70k-120k range, which will allow me to put additional value into the property.
Ideally I would like to add at least one new property per year and honestly, if feasible, I don't mind if they are spread out around the US if it allows the capture of better deals. (Of course I've read that it is ideal to buy in a more "landlord friendly" state)
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