As I reside in the Denver area, I am considering a couple of options. I want to get started NOW, but I perceive this local market to be difficult to find properties amenable to good numbers, so I am considering looking in other locales that have better inventory. So the question is: do I just keep running numbers on what I can find locally or take the scary step of working remote? My experience is in wholesaling, but I would love to flip and BRRRR.
To me the risk isn't in investing remotely....it's investing in an area you don't know. Best option: if you are knowledgeable on an area that is remote to you that would also be good for investing. But yeah, I wouldn't buy properties in 'hot' areas that don't cash flow. Just my 2 cents.
Just don't get taken by shady turnkey operators.
It depends on what you qualify as good numbers, if the numbers or returns you are looking for are not available in your local market your options are
1. adjust your expectations
2. look in other markets
3. don't invest in real estate
If you can find a return that you are comfortable with in your local market that is the ideal situation.
I think there's a big advantage to investing local. Before you go completely out of state, what CO markets w/ in driving distance - Colo Springs, Pueblo, Greeley? I've had a few clients here in Denver start looking at those markets since Denver couldn't give the returns they were looking for.
Are you looking for buy and hold? Flips?
Well, ultimately it needs to come down to the numbers. Denver is extremely tough for numbers right now, but maybe you can find something. Although if you are already a wholesaler and aren't finding anything, then maybe not so much.
As far as the scary step of remote, it only has to be as scary as you make it. The scariest would be- full-out rehabs in areas you don't know much about and without any particular trusted contacts. The least scary would be- no rehabs necessary, trusted contacts in good areas. And everything in between those options.
Fortunately, there are SO many people on here that do it already. I know that new book came out about long-distance investing, there's lots of people on here who actually do it (maybe put a post out asking for people who are rehabbing long-distance and connect with them), and there should be lots of resources. I'm a long-distance investor but I only buy turnkey so I won't be of much help in terms of BRRRRing or flipping long-distance. But there are people who can be.
You'll do great!
@Troy B. it's only scary if you're (no offense) uneducated. I'm an American living in Abu Dhabi and I invest in Indianapolis without the use of a W-2. I'm definitely not some big shot with a lot of money either. Is it stressful? Yes. Scary, not so much. It comes down to your understanding of the market, your "boots on the ground" team, and your risk tolerance. Lucky for you, you have the world's most experienced investors right at your fingertips.
This is a strange time in the housing market so cash flowing deals are few and far between, especially in hot markets. The same can be said about distressed properties to flip or BRRRR. But don't let that stop you. There's great deals to be unearthed all over. People choose the Midwest for a reason. Be stubborn. Be persistent. You'll find a way.
If you are considering flipping long distance that is highly unadvisable. You need to be on site regularly, daily is preferred.
As for BRRR, how would you visualise doing it long distance.
Everyone, thank you! This is exactly why I am here, to hear different ways of looking at things and find a way.
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