First Property Location and Price

[Reed Lambier]

Hello everyone,

I'm curious as to how far away my first property should be. I live in a very expensive area and the average house costs around 300k. In looking for my first rental property, I am curious as to how far away it should be. I have a friend who lives here in Portland OR but bought a rental all the way in Pittsburgh. Is this a wise thing to do? He is using a property manager. 

What price range do you all typically look for? It seems like most investors go for lower priced properties.

Thanks in advance for any knowledge and advice!

[Jonathan Bombaci]

I say the closer the better. Typically I recommend trying to keep it withing an hours drive that way you can get out there if you need to without too much trouble. Investing out of state or in an area that you're unfamiliar with adds and extra wrinkle to the investment. For your first deal you want to invest in an area that you're very familiar with to reduce your risk of buying the wrong property in the wrong part of town. 

Now if you used to live in Pittsburg or have family in Pittsburg then that's different but you should try to find an area you know well or can learn quickly for your first deal.