Investor · NJ · Member since 2018 · 869 posts · 921 votes
8y
I think that its okay but you should definitely learn about the city you plan on investing in. Also i'd look for a agent whom really knows the area well. I plan on buying a MF building out of state for my first buy because it is more affordable. Im going to do a drive through a city I want to invest in this weekend to get a general vibe of the area. Speak to locals see if they notice any changes in the area as a whole for better or worse. If it is a city I wouldn't feel comfortable living in myself I'd probably think twice about it. Last I would make sure that the good deal is a good deal in that city. Just because it's a good deal in your city doesn't necessarily mean it is in another.
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
8y
Hello and welcome to Elizabeth! The only way I would only consider a Turnkey Investment Company that is out of my driving range will keep my travel expenses down. Let a proven history company that does everything for you. Once you make your initial visit you never have to go back until you really have to. The better one's know what they are doing and are usually in the larger cities that are diverse and in a good stage of growth of the population and jobs. Companies like Memphis Invest and Maverick Investments are two of my most favorite.
Investor · NJ · Member since 2018 · 869 posts · 921 votes
8y
I think that its okay but you should definitely learn about the city you plan on investing in. Also i'd look for a agent whom really knows the area well. I plan on buying a MF building out of state for my first buy because it is more affordable. Im going to do a drive through a city I want to invest in this weekend to get a general vibe of the area. Speak to locals see if they notice any changes in the area as a whole for better or worse. If it is a city I wouldn't feel comfortable living in myself I'd probably think twice about it. Last I would make sure that the good deal is a good deal in that city. Just because it's a good deal in your city doesn't necessarily mean it is in another.
Parsippany, NJ · Member since 2018 · 33 posts · 10 votes
8y
True! Thanks for the feedback. I live in NJ so housing and taxes are pretty pricey here. I’m very interested in purchasing a multi-unit and I thought maybe I should look in other areas for better deals. I guess it’s important to be familiar with the area if I’m doing it on my own though
Investor · Oakland, CA · Member since 2016 · 171 posts · 63 votes
8y
It's fine as long as you do your homework and set realistic expectations -- What's the market like? What kind of jobs are in that area? Any population growth? Neighborhood (A,B,C,D)? These are some of the many things to consider.
I think at the end of the day it's all about the systems you have in place i.e. solid property management, solid customer (tenant), and solid CEO (YOU!)
Is it ok to invest in a city/state you’re not familiar with if you find a good deal?
Just make sure to do your research! You do not want to buy in a bad area! Try looking in the Midwest, there are plenty of good markets around here with decent ROIs! Good luck!
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
@Elizabeth Roncevic I also live in NJ and invest out-of-state. It is certainly okay to do that, but you need to do your homework and learn about the market you are looking at. You should also build your team who you can trust and be your boots on the ground for you. Where are you looking?
Parsippany, NJ · Member since 2018 · 33 posts · 10 votes
8y
@Jason Pabon true. It’s all about systems - I know that to be true for my small business.... I see myself investing in areas that have huge potential but aren’t very developed yet. But I know that can be risky
Investor · Oakland, CA · Member since 2016 · 171 posts · 63 votes
8y
@Elizabeth Roncevic it's all about being first to the party. I wish I had invested in Sacramento or even Dallas a few years back. If your goal is cash flow, the midwest may not be a bad place to look
Parsippany, NJ · Member since 2018 · 33 posts · 10 votes
8y
@Dan Barli where do you invest? I’ve been looking in NJ here and there but I’m considering other areas for different reasons. Denver- my family has a second home in Denver so I’m familiar with the area, PA- it’s close and inexpensive; Queens NY- a lot of potential in some of the underdeveloped areas, Texas, Tennessee and suburbs of Vegas
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
@Elizabeth Roncevic I invest in Alabama and Indiana mostly. Like you said, it's tough to find good buy-and-hold deals in NJ that meet your criteria. Have you begun building your teams in the markets you said?
Real Estate Consultant · Philadelphia, PA · Member since 2017 · 52 posts · 35 votes
8y
Perfectly Okay to invest outside of your city/state just do your homework on the area. My rentals are outside of my city by a 6-7 hour drive so my partner and I don't "check up on them" too often. Just make sure you get a good property manager. Once you find an area you like, find an agent or two out there and tell them what you are looking for. Talk to property management companies there too find out what areas rent well, the quality of tenants the area gets, etc.
@Elizabeth Roncevic I invest in Alabama and Indiana mostly. Like you said, it's tough to find good buy-and-hold deals in NJ that meet your criteria. Have you begun building your teams in the markets you said?
Alabama? 😎 Your new name is Dannnn the REI Mannnn Barli... No?
Investor · Pittsburgh, PA · Member since 2016 · 74 posts · 48 votes
8y
@Elizabeth Roncevic @Ramon Paredes I agree with Ramon on PA. Pittsburgh, especially, has excellent cashflow, is moderately priced, and has attracted buyers from NY, NJ, CA, FL, Canada, as a result.
Specialist · Fort Lauderdale, FL · Member since 2016 · 187 posts · 128 votes
8y
Um. I think its impossible to answer your question. The question is not can you but why? Not the why of the real estate but the why of your goals? I mean whether you should invest in a city you are not familiar with depends entirely on what your goals are. If you are looking for a one-time, one-off then ofcourse its ok. If however you have a specific, long-term investing plan with specific measurable goals in mind then the answer should be clear to you. If you don't have a specific, long term investing plan with specific measurable goals, then odds are whatever you invest in will not be optimal.
---- "If You don't know where you are going, any road will get you there " :) Lewis Carroll
Real Estate Agent · Cranberry Twp · Member since 2017 · 384 posts · 198 votes
8y
I'm an agent in Pittsburgh so I think I'm biased, lol, but Pittsburgh has great returns both for rental properties and flips. What I also love about Pittsburgh is that there are areas here where you can pick up properties around $20,000 in some neighborhoods, $50,000 in others, and can move up to neighborhoods that sell for $500,000+
Corona, CA · Member since 2017 · 10 posts · 2 votes
8y
@Elise Bickel what areas in Pittsburgh are considered A/Bs? I am also looking at investing out of state. I’ve looked at some areas in MD and Florida as well.
New to Real Estate · Boise, ID · Member since 2018 · 7 posts · 2 votes
8y
I would always say that you should do your market research. You can’t go wrong with knowing the area and what type of market you are dealing with. Where you invest comes down to what type of investing you are involved in and your financial situation. To me, the Midwest is a good place to start for a steady, linear market. Places like California and Florida are very cyclical markets and have more risk. Hope that helps you out a bit!