1st Time Investor - Investing in Another State?

Question

Hi everyone! During all this free-time I now have, I've confirmed I won't be investing in my hometown which led me to look into other states. I now have a (I'm sure, simple) question about investing in another state. I'm wanting to apply for an FHA or 203k loan so would I find a local loan officer where I currently reside or an officer in that state? Does it matter?

Thank you!

Kimberly Jones · Answer

203k is a specialized loan that few loan officers are good at. Rehabbing in New Orleans can be a bit more challenging than you might expect. You are definitely going to need to get with a local lender to do 203k here. New Orleans is unlike any place else and you are going to need to work with someone that has the right connections to pull off a 203k without landing yourself in a mental institution. Have you spent a lot of time here? Do you have family or close friends here? You REALLY need to stick close to folks that can help you navigate this city. Too many landmines out there if you don't know what to watch out for. Have you hooked up with a Realtor yet?

Twana Rasoul · Answer

@Audriana Moon fha loans are to be owner occupied. Not to be used as investment, non-occupied loans. You can apply to fha loans wherever.

Whitney Hutten · Answer

@Brian Singh For FHA and owner-occupied loans, you are agreeing to live there a minimum of 1-year post-close.

@Audriana Moon if you want to invest in a non-owner occupied home, you can use conventional lending (not FHA or 203K) to purchase. You will sign a rider stating you won't live in the home though.

PM me if you have Q's! I'm right up the road from you ;)

Paul Welden · Answer

Being that each state has its own unique real estate laws/regulations/guidelines, and the 203k is quite detailed, it may make sense to go with a local lender where the property is located.

HOWEVER, and a big however, there are many 203k-experienced lenders that originate 203k's all over the country and are really good at it.

Whichever lender you select, just make certain you can verity their 203k experience (don't just take their word for it).

If you want any recommendations let me know.

Meredith Burt · Answer

Also interested to hear other's experiences! I suggest calling several lenders both in your area and where you want to invest and asking them how that would work. Most lenders I spoke with were very eager to help me understand everything.

Audriana Moon · Answer

@Meredith Burt @Twana Rasoul Thank you for your feedback! To clarify, I do plan on living there, I just want to begin the process before I move. (I'm in Denver and want to move to New Orleans). I will start by speaking to lenders from both states for guidance.

Marlen Weber · Answer

@Audriana Moon what a fun move to New Orleans. Best of luck and congratulations on your first investment.

Todd Rasmussen · Answer

We have properties in four states. A quality property manager is key to long distance investing.

John Nguyen · Answer

Thank you for this post because I have questions that relate to this. I work a job where I relocate every 2-3 years. How does someone manage properties in different states? What if you own properties in multiple states?

John Nguyen · Answer

Knowing my everyday schedule it would be difficult for me manage my properties on my own. Realistically, in order for me to manage my rental properties in other states would hiring a property management agency. Has anyone done this successfully?

1st Time Investor - Investing in Another State?

1st Time Investor - Investing in Another State?

Most Popular Reply

15 Replies