Realtor · Sacramento, CA · Member since 2017 · 8 posts · 3 votes
I live in the San Francisco Bay area and I feel like my investment options are limited due to the expensive real estate. I have been contemplating investment outside of California.
I have been using a turn key real estate company for the past 3 years with good returns. Now have 7 SFH's in indianapolis and 1 in Charolette. The company i use has over 2000 homes under management.
I look at it as risk/reward. I'm getting very good returns in Minneapolis and have bought 4 properties this year so far. I can't imagine how to calculate the additional risk involved in owning an out of state property versus having one 2 miles from my house where I know all the dynamics of rent , electricians, plumbers, handymen ect, and can attend to issues that come up versus being remote. I manage my own properties as it's not that difficult and I'm my best advocate/champion for solving problems and finding good tenants. I also don't want to give away 1/4 the net profits for someone to manage and lease and I know some people pass off all those responsibilities and have someone do it for them.
I bought some real estate when I lived in Minneapolis years ago and have since moved out of state. Although there are many disadvantages to managing property remotely, it does force you to learn delegation and system building (or pay the price).
I have yet to buy anything remotely, but I'll be taking on that challenge this year. Hoping to 1031 a couple properties into an apartment building back in Minneapolis.