Purchasing out of state

[Ashley Francis]

Hi BP fam!

My name is Ash, I currently live in LA and I am finally ready to invest!  However,  the LA market has passed me by.  It's way too expensive out here so I am considering buying income property in another state, specifically Atlanta, GA because I have friends and family there.  I would like to buy a duplex for the purpose of cash flow.  I have gotten pre-qualified for California but not out of state.  

Any tips or advice for a first-time investor investing out of state?  I know Atlanta is booming right now, but does anyone see a crash coming anytime soon?

Also, any recommendations for a good agent or broker in Atlanta?  Preferably someone who owns investment property in Atlanta as well. 

Thanks!! 

[Filipe Pereira]

Originally posted by @Ashley Francis:

Any tips or advice for a first-time investor investing out of state?  I know Atlanta is booming right now, but does anyone see a crash coming anytime soon?

Also, any recommendations for a good agent or broker in Atlanta?  Preferably someone who owns investment property in Atlanta as well. 

Thanks!! 

 Hi Ash, 

I will preface the following with the following disclosure, if you will: I am a property manager and realtor that deals primarily with out of state owners / investors. 

When investing out of state, rely heavily on referrals, whenever you can. I personally advise against buying a property sight unseen. I recommend that my clients come out to see the property once it is under contract, and scheduled for an inspection. Don't buy something based just off of photos. Ask your agent to do a video walk through, and upload it online so that s/he can share it with you. I do this for each of the properties I go through for out of state investors.

To me, the most critical part of your OOS strategy will be a great PM. A great PM will make or break your investment in my opinion. Choose wisely.

Lastly, work with someone who has the heart of a teacher, not that of a salesman. It's important that you learn through the process and develop skills that will make you a better investor, as opposed to just going through the steps but not learning anything!

My understanding is that the west coast, especially areas like Los Angeles, Denver and Seattle are extremely hot right now. I commend you for not letting it get you down, and still taking action. 

Filipe