Long distance buy and hold.

2 Replies

I am new to real estate investing, in fact, I don't have any properties at the moment. I've been doing research in different markets of the country to invest in and more specifically interested in buy and hold. I would like to find out from experienced investors that started their real estate career with long distance investments. I'm looking for advice from investors that went from zero real estate experience to start investing in a different state.

1. With what you know today would you do this again?

2. What would you do differently?

3. What was the reason you decided to invest long distance and not in your back yard as your first investment?

4. What are the pros and cons in your opinion about investing long distance?

5. What is the one thing that someone should be aware before it gets started?

I really appreciate any and all advice.

@Cristian Pap

1. Yes

2. I would have been more patient in waiting for a prime opportunity to present itself. I have no qualms with the property I ultimately purchased at this point, however, I recognize that I was very eager to get started and jumped at the first good looking opportunity I found. 

3. I live in an area with the second highest property taxes in the country and people are fleeing this state like the plague due to taxes and corruption in the government.  I feel more comfortable investing out of state though still within 3 hours from my home.

4. Pros are you can maximize your money by investing in lower cost areas and find cities/towns that are growing to try and maximize potential for appreciation. Cons are you cannot visually inspect your property at the drop of a hat and you may need to hire out for some smaller fixes that you could probably have done yourself. 

5.  Be sure to run your numbers forwards, backwards and sideways and account for things such as higher property taxes for non-owner occupied properties, try to know as much as you can about future plans for the area to know what is coming down the pipe, look for a house with great 'bones' such as roof, siding, foundation, mechanicals and plumbing to avoid some of the major fixes off the bat and don't neglect starting with a cash reserve in case something goes wrong soon after acquiring the property. 

Best of luck!