Hi @Jason Rosenbaum ! Your chances of success as an out-of-state investor increase dramatically if you set reasonable investment objectives upfront, take your time to identify and learn your target market, and build a solid and high-quality ground team from among unconnected, best-in-class professionals.
Regarding your questions, my take is as follows: 1. Follow the money, mainly population flows and economic growth. I'd look at the South and Southwest, in particular. 2. Budget for PM from Day One. If the deal won't support it, it's not really a deal. 3. Talk to tons of landlords, wholesalers and investor-focused agents. Get on the mailing list of wholesalers in prospective target markets and then paper trade their deals to see who's for real and who is not. 4. Unless you've got a huge travel budget, or millions of frequent-flier miles, I wouldn't recommend travel at all until you've done all the desk work you can. Then, once you've chosen a winner, plan to visit that target market (and its many sub-markets) and assemble your ground team.
Connect with me here on BP if you'd like to chat more.
I was in your shoes a few years ago. After looking in our local market for close to a year I decided to focus my energy elsewhere and became an out of State Investor.
Your target will be determine by your goals. Memphis is probably one of the hottest markets now, but the cat is out of the bag we all know how hot the market is in Memphis I'm sure there's a lot of competition from what I hear. You need to determine do you want to throw your hat in the ring in a hot market or look for the next future hot Market, there are pros and cons in either option.
If you have a full time job here in NYC and planning to invest Part-time I highly recommend finding a Property Manager, even with only 1 Property. Don't be surprise if it will take you several tries before finding the right PM. My PM charges 8% of my monthly rent, I negotiated 50% of month rent as finder fee for finding tenants.
I picked 3 markets when I started, after doing hours of research and visited all 3 markets I picked one. There are so many markets that are more affordable compare to ours that you need to focus your time and energy on only a few and then execute..
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